A purchase contract is an agreement that is bilateral and binding. This kind of contract can be used for the benefit of two or more entities involved in a residential or any real estate purchase agreement. Unlike a construction contract agreement, purchase contracts deal with structures that are already built. You may also see Contract Templates
Purchase contracts are very essential as they provide the capacity for the entities who are a part of the transaction to legally purchase properties and/or handle other kinds of business deals. This article contains a list of purchase contracts that you may use as references in coming up with the contract that you may need for contract negotiation with other entities that you want to have business with.
Simple Purchase Contract Template
Business Purchase Contract Template
Sample Real Estate Purchase Contract Template
Simple Property Purchase Contract Template
Purchase Agreement Contract Template
Real Estate Contract Template
Purchase Contract Inclusions
Unlike an investment contract (which is used in a variety of investments for the clients to get a particular rate of investment return within a time duration), purchase contracts are more focused on the payment methods and processes for a physical investment or a property purchase.
The items that should be included in a purchase contract include the following:
- description of the real estate property involved in the purchase contract
- current condition of the property
- location of the property
- scope of the inclusion of the purchase contract with regard to the physical items present in the property to be bought
- agreement about the final purchase price
- identification of all the entities part of the transaction
- agreed upon amount of deposit
- terms and conditions,
- rights and limitations
- regulations and obligations
- signature of all the parties within the transaction
If you cannot provide the entire amount of the purchase transaction in the specified dates of the agreement, you can actually apply for a loan contract to help you with paying the property. This will allow you to get the property and have a longer time to partially pay your lender.
Host Agreement Contract
Guidelines in Creating a Purchase Contract
A purchase contract or a residential real estate purchase agreement is used to provide an outline of a deal agreed upon by a buyer and a seller for the purchase of a residential property. A few guidelines that you may follow in creating an effective purchase contract include these items:
- Keep in mind that purchase contracts can only be applied to residential properties that have already been built. They are not applicable to properties where construction is still in the stages of planning or even in the phase of execution.
- Purchase contracts can be very useful for a residential property owner who would like to have a private sale. You can create a purchase contract if the transaction between family members, relatives, and close colleagues. You can still apply it with other entities but it is mostly suggested to be used for the specified transactions.
- A purchase contract provides information about the property to be sold. Always be precise with your discussion and contract inclusions.
- Terms like an option to terminate may be included to assure that the agreement may still end prior to the sale’s closing depending on the laws that can protect those involved in the transaction.
A purchase contract, just like a sales contract, is already legally binding once all the entities have already signed and agreed upon the contract content.