A purchase agreement is a document that covers all the different aspects of a sales transaction. They contain instructions and terms regarding the legal rights and duties of both the buyer and seller. A purchase agreement is basically a contract that governs the sale of products (services are covered in service agreements).
In a real estate setting, the purchase agreement may be created later on in the negotiating process, and acts as a means of finalizing the terms for the sale.
Purchase agreements for real estate can often be different from agreements for other types of sales. This is because real estate tends to be unique and “one-of-a-kind,” and the sales terms must reflect this aspect of the exchange. Real estate purchase agreements may contain important information such as:
- Descriptions of the property so that it can be clearly identified in terms of boundaries (and distinguished from other properties)
- Sale terms and conditions (price, values, etc.)
- Payment methods and schedules
- Information of all parties involved, including third parties
- Closing schedule
- Mortgage and loan processing information
- Any previous issues with the property (such as an easement or property additions)
The agreement can also contain many other terms and provisions as needed by the parties. The document can often end up being quite complex, and may require the oversight of a legal professional during the drafting stages. Disputes can arise over any of these factors and terms in the document.
Many purchase dispute agreements can be resolved through a home inspection. This can often help to remedy disputes over boundaries, pricing, and other measurable aspects of the property. Other disputes may require legal action to clarify or resolve. In some cases, this can delay the sales process, but legal action may sometimes be necessary in order to complete a sale. For instance, a quiet title hearing may be needed if there is dispute over the title.
Lastly, a lawsuit can be filed if there is a breach of the agreement (for instance if the seller sold the property to a different seller after promising to sell it to the plaintiff).
Purchase agreements can often be complicated and may require the assistance of a commercial lawyer. You may wish to hire a lawyer if you need help with a purchase agreement document. Your attorney can help draft and review the document for accuracy. Also, your lawyer can assist with negotiations and other processes. If you need to file a lawsuit, your lawyer can guide you during the process to ensure that your interests are protected.