Are you looking for a dependable real estate purchase contract to buy property? Then save both time and money with our free template.
Buying or selling a property is always a big decision. That's why you should take the time to go through our sample real estate purchase contract carefully. To help you digest it better, here are some more tricky terms broken down into plain English:
Property Description - This is the blank where you will insert everything that comes with the property sale. In a contract to purchase real estate, a standard property description looks something like this:
"All heating and cooling fixtures and equipment, plumbing and bathroom fixtures, doors, windows, built-in appliances, draperies, blinds, fencing, outdoor plants and other permanently attached items on the premises."
Earnest Money - Also known as a good faith deposit, earnest money is the buyer's way of telling the seller, "Look here, I'm dead serious about buying your property. In fact, let me show you the money."
Since there is often no hard and fast rule on the amount of earnest money, it can vary wildly from a token one dollar up to thousands of dollars. It is usually held in a real estate broker's trust account until the property changes hands. Once the deal is closed, this earnest money is often rolled forward to pay off the down payment or closing costs.
Closing Costs - Unfortunately buying or selling real estate doesn't just involve the purchase price. You will have to face a horde of closing costs, including title costs, recording fees, inspection fees, survey fees, appraisal fees, property taxes, insurance costs, attorney fees and broker commission.
While certain closing costs are usually paid by one party (such as buyer paying appraisal fees and seller paying title costs), closing costs are never set in stone. That's what makes real estate fun and why you should always state who is paying for which closing costs in your real estate purchase contracts.
*Make sure this form complies with your local real estate laws before using it. If you have any doubts, you can ask a real estate lawyer online.
1. THE PARTIES:
The Seller_________________________ hereby agrees to sell the Property to the Buyer _________________________ and the Buyer agrees to buy the Property from the Seller.
2. THE PROPERTY:
3. PURCHASE PRICE:
The Buyer agrees to pay the total purchase price of $ _______________ which is payable as follows:
Earnest money deposit $ _______________
Balance due at closing $ _______________
4. EARNEST MONEY:
The earnest money will be deposited in a broker's trust account and applied to the purchase price at closing. If the Buyer fails to perform, the earnest money will be paid to the Seller. If the Seller fails to perform, the earnest money will be returned to the Buyer.
If the Buyer requires a new mortgage loan to finance this purchase, the application for this mortgage will be made with a lender acceptable to the Buyer. If the mortgage application is not approved within _____ days from the acceptance date of this contract, both Buyer and Seller has the right to terminate the contract. In this case, the earnest money will be returned to the Buyer.
Closing will be held on or before _______________ and the title deed will be transferred to the Buyer. The Seller agrees to transfer the title free of any liens, judgment and other encumbrances.
At closing, the Buyer shall pay the following costs:
At closing, the Seller shall pay the following costs:
All taxes, loan interest, insurance and rents shall be prorated between the Buyer and Seller as of the closing date.
8. PROPERTY INSPECTION:
The Seller is responsible for the operable condition of the fixtures, fittings and built-in appliances of the Property at the time of closing. This real estate purchase contract is subject to the final inspection and approval of the Buyer in writing on or before _______________.
The Buyer shall be given access to the Property to show partners, contractors, inspectors, lenders or prospective tenants before closing.
10. ADDITIONAL TERMS AND CONDITIONS:
Buyer Name: _________________________
Buyer Signature: _________________________
Seller Name: _________________________
Seller Signature: _________________________