How to Write a Real Estate Agreement?

A real estate agreement is a legally-binding document that buyers and sellers sign when purchasing a property. This type of agreement outlines the terms and rights of both parties and functions as a contract. Statista said that by 2020, the number of home properties sold in the US is expected to rise to 6.12 million. Of course, this transaction does not proceed without any agreement on hand. If you need tips in writing a real estate agreement, read our tips below.

1. Identify the Parties

The very first thing that you should write on your agreement are the names of the buyer and seller. It's also important to specify if the property being purchased is residential or commercial.

2. State Property Details, Prices, and Terms

Write about the property's size in square meters, its price, and the terms of the contract. The buyer must know how much the property costs and the rules while the contract is effective. Payment options are also stated along with the price of the property.

3. Specify Termination Clause

The termination clause serves as an option if either party wants to end the agreement ahead of time. Provide some rules for early termination. Make sure that it doesn't harm both parties the moment it is carried out.

4. Provide an Expiration Date

An expiration date can be included in case the buyer or seller doesn't accept the agreement. If either party accepts the agreement, it must be communicated through writing.

5. Give a Date for Property Acquisition

Provide a date for the buyer to acquire the property. This is an essential piece of information that should be present in all agreements.

General FAQs

  • Why is there a need to include a termination clause in a real estate agreement?

  • What is the biggest of a real estate agreement?

  • What are some of the items in the property that can be included or excluded in sale?

  • Is it advisable to inspect the property before buying it?

  • Can a seller negotiate the price of a property?

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