Buying and selling a real estate property is a serious transaction that cannot be made official without legal paperwork. Arguably most importantly, there is the purchase and sale agreement, otherwise referred to as a sales contract, real estate purchase agreement, or otherwise. Without the need for further introduction, please follow along to find out what you should expect to be included in this legally binding agreement and how a proficient New York City purchase & sale attorney at Zimmet Law Group, P.C., can evaluate its legitimacy before you provide your signature.
What is a real estate purchase and sale agreement?
As the name suggests, a purchase and sale agreement is a legally binding contract that outlines the terms and conditions under which a buyer agrees to purchase a real estate property from a seller. It should cover every aspect of the transaction, starting from the offer and ending with the closing.
This is to protect both parties’ rights and interests in the transaction, along with holding them accountable to their obligations in the matter. With this clarity and transparency on a tangible legal document, the chances of the parties experiencing misunderstandings and entering disputes in the future are minimized.
What should I expect to be included in a purchase and sale agreement?
To reiterate, a purchase and sale agreement should essentially cover every detail involved in a real estate transaction; namely, the following:
- The legal names of the buyer and seller.
- The legal description of the real estate property.
- The agreed-upon purchase price of the real estate property.
- The method of how and the schedule of when the buyer will pay.
- The earnest money deposit made by the buyer.
- The financing contingency, if the buyer is relying on financing.
- The inspection period and how discovered defects will be handled.
- The time and location where the closing of the sale will occur.
- The fixtures within the real estate property that are included in the sale.
- The type of deed and title that will be provided at closing.
- The actions that should be taken if a buyer or seller defaults on their obligations.
- The contingencies that are tied to executing the real estate transaction.
- The addendums that have also been agreed upon and signed by both parties.
You could look for a purchase and sale agreement template online. But given the seriousness of this legal document, it may be in your best interest to draft a custom one with the help of a legal representative. This is, again, to ensure that all your rights are protected and interests are covered.
Do not let your legal initiatives stop after reading this blog. The next action you should take is calling us at Zimmet Law Group, P.C., and retaining the services of a talented New York City real estate attorney. Rest assured, we will take the reins from here on out.
