How to Draft a Purchase and Sale Agreement. Purchase and hire purchase agreement format pdf agreements are used most commonly when selling real estate.
It is drafted after the buyer makes an offer and the seller accepts the offer. The agreement lays out important terms, such as the closing date, the amount of the deposit, and any special situations that would warrant canceling the agreement. The document is usually prepared either by the attorney or the Escrow Agent who handles the closing process. If you are selling your own home, then you may end up drafting a purchase and sale agreement. Be sure to show your draft to a qualified attorney. You should type up the purchase and sale agreement so that it is legible.
You don’t want the other side to claim that you hid information using small fonts, so set the font to a readable size and style. Times New Roman 12 point works for many people. If you are going to use your sale and purchase agreement more than once, then set it up as a template. Include blank lines for information that will change from contract to contract, such as the name of the purchaser and the purchase price. At the top of the page, you should center the title between the left- and right-hand margins. Agreement to Purchase Real Estate. Identify the parties to the sale.
You need to identify the purchaser and the seller at the start of your agreement. Add the legal description of property. You need to accurately describe the property in your agreement, so find the legal description of property, which is on the deed. You can get a copy of the deed at your county’s Recorder of Deeds office. The purchase price shall be .
After earnest money is credited, the remaining balance shall be paid by Purchaser at closing. Identify any earnest money deposited. Earnest money is a form of security deposit. It is how you show the seller that you are serious about buying the property.
Without depositing earnest money, a potential buyer could claim to be interested in any number of homes, effectively removing them from the market. You should include a clause describing the amount of earnest money to be deposited and the deadline for depositing it. Seller’s acceptance of this agreement. You should also clarify that the earnest money will be credited to the purchase price.