REAL ESTATE PURCHASE AGREEMENT
This Purchase Agreement (the “Agreement”) dated this ___________day of ________________ BETWEEN ________________________ (the “Seller”) AND ____________________ (the “Buyer”). The Seller wishes to sell a certain completed home and the Buyer wishes to purchase the completed home that includes all light fixtures, all electrical, all mechanical, plumbing, air-conditioning, and any other systems of fixtures are attached thereto; all plants, trees, and shrubbery now a part thereof, together with all the improvements and all appurtenances thereto, all being hereinafter collectively referred to as the “Property”.
IN CONSIDERATION OF and as a condition of the Seller selling the Property and the Buyer purchasing the Property and other valuable consideration, the receipt and sufficiency of which consideration is acknowledge here, the parties to this Agreement (individually the “Party and collectively the “Parties”) agree as follows:
The property is situated at ______________________________ and the legal description of the property is as follows: ______________________________________________, which includes fixtures and improvements located on the property and all rights, privileges and appurtenances associated with it, including but not limited to permits, easements, and cooperative and association memberships (the “Property”).
The Seller agrees to sell and convey to the Buyer and the Buyer agrees to purchase from the Seller the Property.
The Purchase Price for the Property (the “Purchase Price”) will be paid as follows:
- Earnest money payable after the Effective Date of this Agreement is: $ ______________
- Excluding any loan funding fee or mortgage insurance premium, the sum of all financing is : $ _________________
- The total purchase price payable is: $ ________________
- FINANCING TERMS
The portion of the Purchase Price not payable in cash by Buyer amounts to $ _______________ and it will be paid by one or more third party mortgage or deed of trust loans.
This Agreement is not subject to the Buyer being approved for financing and does not involve FHA or VA financing.
The Buyer will deposit $ ________________ as earnest money at _______________________ with ____________________ acting as escrow agent (the “Escrow Agent”), on or before _____________________. Failure to deposit the earnest money as provided in this clause will result in the Buyer being in default under this Agreement.
At the Buyer’s expense, the Seller will furnish to the Buyer an owner’s policy for title insurance (the “Title Policy”) from ______________________ (the “Title Company”) in an amount of the Purchase Price dated as of the date that the sale of the Property becomes final and the Buyer takes possession of the Title Policy, subject to the following exceptions (collectively the “Title Exceptions”) which includes: building and zoning ordinances; standard utility easements; standard riparian matters; common restrictive covenants relating to platted subdivision; oil, gas and mineral rights; taxes, mortgages or deeds of trust and assessments which the Buyer will be assuming; discrepancies in regards to shortages in area or boundary lines; and liens created as part of the financing for the Buyer.
At the Seller’s sole cost, the Seller will furnish or cause to be furnished to the Buyer a commitment for title insurance (the “Commitment”) and copies of restrictive covenants and documents evidencing exceptions in the Commitment (the “Exception Documents”) other than the standard printed exceptions. The Seller hereby authorizes the Title Company to deliver the Commitment and Exception Documents to the Buyer’s address provided in this Agreement.
Prior to the Closing Date and at the Buyer’s sole cost, the Seller will furnish a new survey to the Buyer and the said survey must be made by a registered professional land surveyor acceptable to the Buyer, Title Company and any lender.
The Buyer may submit a written notice, within 10 days after the Buyer receives the Commitment, and the Exception Documents, in relation to any defects, exceptions or encumbrances to title which makes the title unmarketable, excluding the Title Exceptions.
With the exception of the requirement in the Commitment which are not waived, if the Buyer fails to provide a written objection within the allowed time, it will constitute a waiver on the part of the Buyer to object. Any timely objections by either the Buyer or any third party lender must be cured by the Seller, at the Seller’s expense, prior to closing and the Closing Date will be delayed as necessary. If the objections are not cured, this Agreement will terminate and the earnest money will be refunded to the Buyer within 10 days unless the Buyer has waived the objections in writing and elected to close the sale and accept the title with the existing defect.
SELLER’S DISCLOSURE. The Seller does not know of any material facts that would affect the value of the property, except those observable by the Buyer or any known to the Seller which are disclosed in this Agreement and the attached addenda.
STATUTORTY/VOLUNTARY DISCLOSURES. The Seller is responsible to furnish the Buyer with the following items as practicable before the signing of this Agreement:
- Lead-Based Paint Disclosure and a copy of the pamphlet titled, “Protect Your Family From Lead in Your Home” from the EPA
COUNTY DISCLOSURE. The Seller is responsible for satisfying any local disclosure requirements prior to the signing of the Agreement. Please consult the local county department in which the Property is situated and/or a local real estate attorney to ensure compliance has been met.
- PROPERTY ACCESS AND INSPECTION
The Buyer, may as its sole cost, select inspectors and pest controllers licensed to practice within ________________ or any lawful authorized agent to make inspections to inspect the Property. The Buyer will deliver to the Seller a written notice of any defects in addition to a copy of the inspection report within 10 days after the inspection. At all reasonable times, the Seller is to permit the Buyer or its agent’s access to the Property for the purpose of inspection and will pay for turning on existing utilities.
- PROPERTY CONDITION
The Buyer accepts the Property “AS IS” without any further work, repairs, treatments or improvements.
The Seller makes no express warranties aside from those expressly described in this Agreement.
This Agreement may not be assigned by Buyer in whole or in part. Notwithstanding the foregoing, at any time during the Term, Buyer may assign this Agreement (a) to any lender or lenders as security for obligations to such lender or lenders in respect of financing arrangements of Buyer or any affiliate thereof with such lender or lenders, or (b) upon prior written notice to Seller, to any Person that is and at all times remains an Affiliate of Buyer or that merges or consolidates with or into Buyer or that acquires all or substantially all of the assets or stock of Buyer.
- LENDER REQUIRED REPAIRS
Neither Seller nor the Buyer is obligated to pay for any lender required repairs or remediations, unless both Parties agree in writing. If repairs will exceed five percent, the lender has the sole option to terminate the agreement. If the Parties cannot come to an agreement for the lender required repairs or remediations, this Agreement will terminate and the earnest money will be refunded to the Buyer within 10 days of the receipt of written notice.
- COMPLETION OF REPAIRS AND IMPROVEMENTS
The Seller will complete all agreed work, repairs, treatments, and improvements (the “Work”) prior to the Closing Date unless both Parties agree otherwise in writing. The Work to be completed must be done by individuals who are licensed to perform such tasks and all required permits and regulations must be obtained and observed. Any transferable warranties received by the Seller for completed Work will be transferred to the Buyer at closing. If the Seller fails to complete the Work prior to the Closing Date, the Buyer may elect to complete the said Work and the Buyer will be entitled to claim reimbursement for the Work upon closing.
The Closing Date will be on or before _________________, or be within seven days after objections revealed from the Commitment or survey have been cured, whichever date is later. In the absence of legal excuse, the failure to close the sale on the Closing Date by either Party will enable the non-defaulting party to pursue any remedies on default provided in this Agreement.
Upon closing, the Seller will execute and deliver to the Buyer a general warranty deed which has title to the Property and shows no further exceptions to title of the Property except the Title Exceptions, and furnish a current tax statement which shows no delinquent taxes on the Property.
The Buyer will pay the Purchase Price in good funds acceptable to the Escrow Agent.
Any notices, statements, certificates, affidavits, releases, loan documents and other documents required by this Agreement, by the Commitment or by law which is necessary for the closing of the sale or the issuance of the Title Policy must be promptly executed and delivered by the Seller and the Buyer.
All covenants, representations and warranties in this Agreement will survive closing and may be enforced.
Possession of the Property in its current or required state, ordinary wear and tear excepted, will be delivered by the Seller to the Buyer upon proper funding at closing. A tenancy at sufferance relationship will be created between the Parties where there is no authorized written lease agreement and either the Buyer has possession prior to closing or the Seller has possession after closing. The Parties should consult their respective insurance agent and are responsible to ensure adequate coverage exists upon the transfer of ownership and possession.
- SETTLEMENT AND OTHER EXPENSES
Unless both Parties otherwise agree in writing, the following expenses payable to the Seller (the “Seller’s Expenses”) must be paid at or prior to closing:
- All existing liens, prepayment penalties; recording fees; lender; tax statements or certificates; preparation of deed; half of escrow fee; and all expenses payable by the Seller under this Agreement must be released or discharged accordingly.
The following expenses payable by the Buyer (the “Buyer’s Expenses”) must be paid at or prior to closing:
- Loan origination, discount, buy-down, and commitment fees.
- All expenses related or incident to any loan, including but not limited to, appraisal fees, application fees, credit reports, loan documents preparation fees, recording fees on notes and mortgages or deeds of trust; as well as recording fees on the deed; financing statements; inspection fees; half of escrow fees; all prepaid items including flood and hazard insurance premiums; documentary stamp tax; title policy; and all other expenses payable by the Buyer, necessary to perform the Buyer’s obligations under this Agreement must be released or discharged accordingly.
The following items will be prorated and adjusted as property as of the Closing Date: any taxes due for the current year, association fees, maintenance fees, assessments, dues, heating tank fuel, utility charges and rents of the Property. If the tax rate for the current year in unknown, the Parties will use the rate from the previous year plus five percent at closing. If the tax rate for the previous year is also unknown, the Escrow Agent will estimate an amount to prorate, holdback sufficient funds and adjust the prorated amount when the new tax statements become available. The Buyer will be obligated to pay the share of the prorated taxes for the current year if the taxes are not paid at or prior to the closing.
The Seller will bear all risk of loss to the property or its improvements, which includes, but is not limited to destruction of the Property, or loss caused by eminent domain, until the Closing Date. If at any point after the Effective Date but prior to closing, any part of the Property is damaged or destroyed, the Seller will restore the Property to its previous condition as soon as possible before the Closing Date, reasonable delays excepted. If the Seller fails to restore the Property due to unforeseeable factors beyond the control of the Seller, the Buyer may elect one of the following:
- The Agreement will terminate and the earnest money will be refunded to the Buyer within ten days;
- The Closing Date will be extended as necessary to accommodate the performance of restoration; or
- As closing, the Property in its damages state will be accepted and all insurance proceeds will be assigned from the Seller to the Buyer and the Buyer will receive an amount equal to the deductible under the Seller’s insurance policy.
The Seller’s obligations under this provision are independent of any obligations of the Seller found under the heading Property Condition.
The Buyer will be in default if the Buyer fails to comply with the provisions of this Agreement, upon which, the Seller may:
- Seek specific performance; or
- Seek other relief as may be provided by law; or
- Seek a combination of any or all of the above remedies; or
- Treat all earnest money as forfeited and the said money be deemed as liquidated damages and the sole remedy for the Seller.
If the Seller, due to any factors beyond the control of the Seller, fails to make any non-casualty repairs or deliver the Commitment or survey as required, the Buyer may:
- Extend the performance time and the Closing Date as necessary; or
- Terminate this Agreement and the money will be refunded to the Buyer within 10 days as the sole remedy.
The Seller will be in default if the Seller fails to comply with the provisions of this Agreement, upon which, the Buyer may:
- Seek specific performance; or
- Seek such relief as may be provided by law; or
- A combination of any or all of the above remedies; or
- Treat this Agreement as terminated and receive the earnest money within 10 days of cancellation
The Seller and the Buyer agree that the Escrow Agent is not:
- A party to this Agreement and will not assume any liabilities incurred as a result of the performance or non-performance either the Buyer or the Seller, and that no liability will be incurred unless the Escrow Agent is grossly negligent or willfully breaches the terms of this Agreement.
- Liable for the loss of earnest money as a result of the failure of any financial institution in which the earnest money has been deposited unless the said institution is acting as an Escrow Agent; and
- Liable for interest on the earnest money.
Upon closing, the earnest money will be applied in the following order with the excess refunded back to the Buyer:
- Any cash down payment; and’
- Buyer’s expenses
At all relevant times during the course of this Agreement, the Escrow Agent is required to notify the other Party prior to the releasing of any funds to the Party who is requesting the funds.
The notice of the Escrow Agent to either Party will be deemed effective upon its deposit to any US postal service offices or mailboxes with receipt requested, provided that the notice contains adequate postage and the correct mailing address of the Party contained in this Agreement is inscribed on the notice. The notice of objection to the demand of earnest money will be deemed effective upon receipt by the Escrow Agent.
The Seller represents and warrants that there will be no liens, assessments, or security interests from third parties against the Property which will not be satisfied out of the sales proceeds. The Seller makes no representation aside from those expressly provided in this Agreement. If the representations of the Seller are untrue upon the Closing Date, the Buyer may terminate this Agreement and the earnest money will be refunded within 10 days.
All notices pursuant to this Agreement must be written and signed by the respective Party or its agent and all such correspondence will be effective upon it being mailed with return receipt requested, or hand-delivered as follows:
To the Buyer at:
To the Seller at:
The Effective Date of this Agreement (the “Effective Date”) is latter of the date the Buyer executed this Agreement and the date the Seller executed this Agreement.
The Parties agree this Agreement will be construed under the laws of _________________, without regard to the jurisdiction in which any action or special proceeding may be instituted.
If there is a conflict between any provision of this Agreement and the applicable legislation of _______________, the Act will prevail and such provisions of the Agreement will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Agreement.
If any terms or provisions of this Agreement are determined to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement will not be affected and each unaffected term and provision of this Agreement will be valid and be enforceable to the fullest extent permitted by law.
There are no obligations on either Party for the payment of broker fees in this Agreement. The Parties agree that no real estate brokers or agents were procured for their services in connection with this Agreement or any part of the sale agreement prior to the signing of this Agreement. If a broker or agent was retained, the Party which employed the said broker or agent will be solely liable for the costs associated with it.
This document constitutes the entire agreement of the Parties and it may not be contradicted by evidence of prior contemporaneous or subsequent oral agreement. The provisions contained in this Agreement cannot be changed except by the signed and delivered written consent of both Parties.
This Agreement may be executed in counterparts. Electronic signatures are binding and are considered to be original signatures.
All monetary amounts in this Agreement refer to US dollars, and all payments required to be paid under this Agreement are paid in US dollars unless the Parties agree otherwise in writing.
Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement.
Time is of essence in this Agreement. Every calendar day except Saturday, Sunday or U.S national holidays, will be deemed business day and all relevant time periods in this Agreement will be calculate in business days.
EXECUTED by _______________on the ______________ day of ____________, 20_____
EXECUTED by _______________ on the ___________ day of ______________, 20 _____
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