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.
Why is there a need to include a termination clause in a real estate agreement?
A termination clause is needed so either party can terminate the real estate agreement in cases of misunderstanding. There is a set of rules for an early termination of contract.
What is the biggest of a real estate agreement?
The biggest benefit of a real estate agreement is to protect the rights of both the seller and the buyer upon the purchase of a property.
What are some of the items in the property that can be included or excluded in sale?
Some items of a property such as windows, doors, lights, heating and cooling equipment, bathroom fixtures, and built-in kitchen appliances can be included or excluded when a property is on sale.
Is it advisable to inspect the property before buying it?
Yes, it is advisable to inspect the property before buying it. The seller should allow the buyer and the inspector to inspect the home for any damage.
Can a seller negotiate the price of a property?
According to Legal Nature, the seller can negotiate the price of a property through a counter offer. With a counter offer, he can increase the price of the property. The buyer can also refuse this counter offer and state his own terms, which is called a counter-counter offer.