12+ Real Estate Purchase Agreement Templates – PDF, Word
Our earliest ancestors moved from place to place carrying just enough food supplies to last them a week, leaving only a few traces as proof of their living. Some carvings here, stone axes there, and a few animal tooth trinkets. That was how it worked for over half a century. No roots built, flighty as birds, living in the way they only know how—as nomads, or whatever it was they referred to themselves back in the ancient days. You may also see purchase templates.
Then came civilization and ownership of land, and shelter became something that was established by strength to something a person can trade, sell, buy and rent. Tenancy always came with a tradeoff which was a payment to the landowner both for using the land and for its protection. You may also see purchase agreement templates.
It was a responsibility that first came to tribe leaders, then to kings and eventually, to landlords, which completely changed the way people lived as today we have the power to buy and own property, as long as we can afford it. As people need places to live, and workers need office spaces, it didn’t take long for what we know as real estate to be such a dynamic industry that you won’t know what you’ve lost and won if you are new to the business of investing in it, either as a buyer or as a seller. Looking back on its roots, real estate does have a long history in the United States.
Residential Real Estate Purchase Agreement Template
No longer under England’s rule after the Revolutionary War, the federal government finally allowed land ownership to private owners, a practice that continued significantly starting with the Homestead Act of 1862. When the act was signed into law, many citizens, including freed slaves, were able to put up claims for up to 160 acres of land, so that by the end of the Civil War, there were about 15,000 homestead claims established, which continued long after the Civil War ended.
The Homestead Act became the foundation of the real estate market as the federal government granted more than 300 million acres of public property to private landowners in exchange for tilling and developing lands in the territory.
The real estate industry has since evolved as the country made room for modernization, growing from an agricultural society to an industrial one, owing to several changes observed during the transformation brought by the Industrial Revolution. No longer contented and no longer largely dependent on farming for a livelihood, people from the countryside flocked to the cities to find jobs and get paid for working in factories.
They needed a place to live and they could afford it. Aside from that, the United States became wealthier, as the industry grew with more banks and other financial establishments started lending money to regular working people. You may also see sample purchase agreements.
Home ownership became more common with people wanting tenure in their blue-collar jobs in the cities. Today, real estate is an industry comprising the various aspects of a property. This includes development, appraisal, marketing strategy, selling, leasing, as well as the management tasks that comes with commercial, industrial, residential, and agricultural properties.
This industry’s rise and fall is dependent on the national and economic situation. Thankfully, it continues to be stable because of the obvious. Whether it is for industrial, commercial or personal use, people need properties, ergo, a place to stay and do business in.
The selling game in real estate is pretty much like everything else in the business. This is part of the ever-changing market although in some cases, sales are fixed. That is why people in the real estate market, just like in any business deal, need necessary legalities before they secure their property investments.
Real estate novices should know how it works to end up with a smooth transaction. Like many, they need a well-drafted real estate purchase agreement. A wise investor knows that it takes planning and good decision-making for the parties involved to stay on track. You may also see lease-purchase agreements.
A property doesn’t come cheap, and the dilemma of whether to buy or sell is constantly haunting brokers and buyers alike. Knowing that the nation’s housing market for 2018 continues to look good, based on business and economy reports recently released, is probably a good advantage, granted you know your way through the industry.
Even so, it seems young adults will continue to have financial challenges with the high cost of living in certain areas like San Francisco, Boston, New York and Washington D.C. Interest rates are at an all-time-high so it would actually be better to consider owning a property these days than just renting one, and that is where a real estate contract plays a big part.
The first challenge one would have to face when purchasing a property would perhaps be what can be referred to as “buying power”. Money talks, so you have to evaluate your spending power based on how much you can afford to invest, be it done through financing or just plain cash. Good property investments don’t just happen.
You need to go out and hit the ground running, starting off by viewing properties that would offer the best resale value at the most and enough market potential at the very least. Value is one of the deciding factors of a property sale so do some viewing on several properties, because this will come in handy when narrowing down your selection of a real estate investment before you sign an agreement and arrive at a deal with anyone. You may also see purchase agreements.
You will also want to identify possible issues prior to signing an agreement, especially if it is an offer to purchase, so that you can avoid any issues, especially financial, early on. Some beginners make the mistake of signing anything without evaluating agreement clauses and the property they had set eyes on, and then they end up being broke, when worse comes to worst, before even being able to take advantage of what was supposed to be a good investment.
Some others depend on brokers even though this isn’t the broker’s job, to begin with. There are some things your real estate broker cannot decide for you. Making up your mind about a certain offer is one of them.
Some factors need to be considered before finalizing an offer. You have an objective and that objective is to get a real estate agreement which would be more than acceptable for both sides. This is to ensure that you have a promising deal, with both of you having an intention to move it one step higher.
It would be better to have a professional with enough experience present to explain and help draft the agreement to avoid any possible miscommunication and to ensure that everyone involved understands what the terms and conditions entail. Don’t forget to include the two most important parts of the deal, which would be the property and its location.
Those two should be indicated with the exact address, the city or locality’s evaluation, the legal description, the current owner of the property title and the listing price, including milestone fees and allocations. These things are what you need as a strong basis for the decision to accept an offer and sign the sample agreement.
The main terms should also be indicated clearly and the process by which each person should follow their part of the agreement. Details that are time sensitive should not be forgotten as well because they are important in providing both buyer and seller a better understanding of the process involved.
Purchase agreements can vary significantly depending on state laws. There are regions where agreements need to be very detailed and concise to allow for a negotiation. In some cases, the contract can even go as far as being a full, legally binding one.
If necessary, consult legal experts on how to go about your terms and conditions of the agreement to avoid confusion. An agreement is a vital part of the process of real estate investing. It allows parties to lay out the financial aspect and terms covering the deal, from the smallest pricing requirements to disclosures.
Whether you are the buyer or the seller, your agreement is your best protection of what could turn out to be a very wise investment, just as you hoped. Otherwise, you’ll be looking at consequences that could be difficult to get out of. You must not forget that the basic foundation of the contract is, of course, the agreement of both sides to the terms and conditions stated.
Should the offer not be accepted or signed within the allowed time frame set, then no contract exists, you need to get moving if it cannot be further discussed and if no amount of negotiation can change the other party’s decision. You may also like equipment purchase agreements.
Real estate investing can actually be as simple in concept as playing a board game but that is only when you understand both the benefits and risks it involves. You need to do your homework and learn about the market. And learning the market includes knowing the property’s history, maybe even the history of the market itself, and the location’s potential. Simple, yes. But simple does not mean easy. You may also see sales agreement templates.
We hope you learned something useful from this article, and we hope we have helped you in your own business efforts. Make sure you check out the other articles we have on Template.net. We offer a variety of topics covering subjects such as business, graphic design, and web design. Happy reading!