Whether you are a first-time home buyer or a seasoned real estate investor, buying a house is a major financial and legal commitment. A house purchase contract, also known as a real estate purchase agreement, is a legally binding document that outlines the terms and conditions of the sale. In this article, we will provide you with an example of a buying a house contract.
Before we dive into the example, it is essential to understand what a house purchase contract entails. Essentially, it is a document that outlines the terms and conditions of the sale, such as the purchase price, closing date, and contingencies. A contingency is a clause in the contract that outlines certain conditions that must be met for the sale to proceed. For example, a common contingency is a home inspection contingency, which allows the buyer to back out of the contract if the inspection reveals significant issues with the home.
Now, let`s take a look at an example of a house purchase contract:
REAL ESTATE PURCHASE AGREEMENT
[Buyer`s Name and Address]
[City, State Zip]
[Seller`s Name and Address]
[City, State Zip]
1. PROPERTY DESCRIPTION:
The seller agrees to sell and the buyer agrees to buy the following described real property (the “Property”):
2. PURCHASE PRICE AND PAYMENT:
a. The purchase price for the Property is [$ Purchase Price].
b. The buyer shall pay the purchase price as follows:
[$ Deposit Amount] as a deposit upon execution of this Agreement. This deposit shall be held in an escrow account by the seller`s agent until the closing.
[$ Balance Amount] at closing, which shall be no later than [Closing Date] unless extended by mutual agreement.
3. TITLE AND CLOSING COSTS:
The seller shall provide marketable title to the Property, free and clear of all liens and encumbrances, except as otherwise provided in this Agreement.
b. Closing Costs:
Closing costs shall be paid as follows:
Buyer shall pay for:
• Recording fees
• Buyer`s title insurance policy
• Pro-rata share of real estate taxes
Seller shall pay for:
• Transfer tax
• Owner`s title insurance policy
This Agreement is contingent upon:
a. Buyer obtaining financing on terms satisfactory to the buyer.
b. Satisfactory results of a home inspection to be performed by the buyer.
c. A clear title search.
In the event of default by either party, the non-defaulting party shall have the right to terminate this Agreement and to seek all remedies available at law or in equity.
6. REPRESENTATIONS AND WARRANTIES:
a. Seller represents and warrants that:
• The Property is free and clear of all liens and encumbrances, except as otherwise provided in this Agreement.
• All improvements to the Property have been completed in accordance with all applicable laws and regulations, and all necessary permits have been obtained.
b. Buyer represents and warrants that:
• The buyer has sufficient funds to complete the purchase of the Property.
• The buyer has read and understands the terms and conditions of this Agreement.
7. ATTORNEY FEES:
In the event of any legal proceedings arising out of or related to this Agreement, the prevailing party shall be entitled to reasonable attorney fees and costs.
8. ENTIRE AGREEMENT:
This Agreement contains the entire understanding between the parties and supersedes all prior negotiations and understandings, whether written or verbal.
This Agreement must be signed by both parties to be effective.
[Buyer`s Signature] [Date]
[Seller`s Signature] [Date]
As you can see, a house purchase contract is a detailed and complex legal document. It is essential to review all the terms and conditions carefully before signing it. If you are unsure about any of the clauses or legal jargon, it is best to seek the advice of a real estate attorney.
In conclusion, a house purchase contract is a critical component of the home buying process. By having a clear understanding of what it entails and reviewing an example like the one provided above, you can enter the buying process with confidence and avoid any potential legal or financial pitfalls.