The Purchase Agreement is known by various names, such as "Contract of Purchase," "Contract For Purchase, "Agreement of Sale," "Sales Agreement," "Purchase Contract," "Sales Contract," and many others. The different names used vary according to custom, location or jurisdiction.
It doesn't really matter what it is called as long as the documents meet the definition requirements. The "Purchase Agreement" is generally defined as a contract for the purchase and sale of real estate between a Buyer and Seller in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions.
These "specific terms and conditions" and any other stipulations agreed upon by the two parties are compiled and entered into documents referred to as "PURCHASE CONTRACT."
The purchase process of real estate has developed through the years into a specific pattern. It first begins with an the "offer" from the potential Buyer. This "offer" will contain all of the stipulations required by the buyer in order to purchase the property. These can be such things as an adjusted purchase price, terms of the down payment and many different contingencies.
The Seller may accept the entire "offer" as presented, however, this is very rare. Most of the time the Seller will respond with modifications or adjustments to the "Offer." The document used for this purpose is referred to as the "Counter Offer."
During the negotiation period it is possible to add something that is not contained within the formal writing of the "Offer." or the "Counter Offer." An example could be a list of furniture that the Buyer may want. The document used for this purpose is called an "Addendum."
In recent years, it has become common place for the Seller to provide the Buyer with a list of known defects, conditions or any other information concerning the property. This "REAL ESTATE DISCLOSURE STATEMENT" is not a warranty of any kind by the seller and is not a substitute for any inspections or warranties the Buyer may wish to obtain. It is merely a declaration of what the Seller knows regarding the property.
The results of the negotiations between the Buyer and Seller concludes with a "meeting of the minds" and at that time an agreement between the two parties exists. This final agreement is called the "PURCHASE AGREEMENT" or "PURCHASE CONTRACT." and acknowledged by both by signing the document.
In most states or jurisdictions a "PURCHASE AGREEMENT" will actually be a package of related documents as discussed above which become part of the entire offer and acceptance and purchase process.
Can you read an existing agreement or contract and tell the difference between what is legal and what is not ?
Whether you are the buyer or seller, the language of any PURCHASE AGREEMENT can be confusing. Unfortunately, most of us cannot afford to hire an attorney to help us. Unless you know and understand contract law, it is very hard to compose any kind of agreement and be sure you won't be in trouble later.
Don't be mislead by all the free and cheap real estate forms available all over the Internet. Most are not worth your time or effort and will ultimately get you in trouble. Our Official Residential PURCHASE AGREEMENT forms contain all the legal language and protection you need.
That old saying about "how you get what you pay for" has never been more valid.
The entire process to obtain all of the required valid forms is quick, easy, very affordable and most of all USER FRIENDLY. Keep reading and we will explain how everything works. Your complete "Residential Purchase Agreement Kit" is only a click away.