The components of a real estate purchase agreement.

Understand the different elements of a real estate purchase agreement to help you sell or purchase a house with confidence.

A real estate purchase agreement is a type of real estate contract that details an agreement between the buyer and seller of a property. For real estate agents, buyers, and sellers alike, understanding the elements of a real estate purchase agreement is crucial to executing a seamless home-buying experience.

Let’s explore the elements needed to create a simple real estate purchase agreement.

Is a real estate purchase agreement the same as a real estate contract?

Yes, a real estate purchase agreement and a real estate contract are often used interchangeably to refer to the same document that outlines the terms and conditions of a property transaction between a buyer and a seller.

Both serve as legally binding agreements that detail the sale, including the purchase price, financing terms, closing date, and any other relevant terms and conditions. While regional or legal conventions can have some influence on the preference for one term over the other, both serve the same purpose when it comes to purchase agreements for real estate.

Essential elements of a real estate contract.

While each purchase agreement will differ in the details, nearly everyone will include the same key components that cover the different terms of the purchase. You want to make sure that your purchase agreement includes all these elements to avoid confusion or problems during the purchase process.

Here are the key components of a real estate purchase agreement:

• The address and description of the property being purchased
• The name, address, and contact information of the buyer and seller of the property
• The agreed purchase price
• The type of sale
• The terms of the sale
• The closing date and costs
• Any items that are included or excluded (for example, furniture pieces or equipment)
• Any relevant disclosures (lead paint, asbestos, etc.)
• Any contingencies (pending inspections, appraisals, or other actions that could delay or cancel the sale)

Does the buyer or seller draw up the real estate purchase contract?

The responsibility for drafting the real estate purchase contract typically falls on the buyer’s side. The buyer’s agent or attorney is often tasked with preparing the initial draft of the agreement. They will then outline the terms and conditions of the proposed real estate transaction.

Once drafted, a real estate contract is presented to the seller for review and negotiation. Even though the buyer usually takes the lead in preparing the agreement, it is a collaborative process involving negotiations between both parties until a mutually agreeable version is reached.

Is a lawyer needed to draft a real estate purchase agreement?

While it’s not usually a requirement to have a lawyer draft a real estate purchase agreement, involving legal expertise can be helpful in protecting both parties’ interests. Real estate transactions involve complex legal considerations, and a lawyer’s involvement can help navigate.

Buyers and sellers often use standardized forms, but these may not cover all circumstances. So, having a lawyer review the purchase agreement can provide valuable insights and ensure that the document aligns with any applicable laws and regulations.

Sign home purchase agreements electronically.

If you ensure that these items are included in your purchase agreement, you’ll be well on your way to a successful real estate purchase. Follow up with a real estate bill of sale, and don’t worry about wasting time getting your documents signed in person. Use Adobe Acrobat to e-sign documents from real estate contracts to tax forms and embrace the extra time you have to focus on how you’re going to decorate..