The Real Estate Purchase Contract is the foundational document used in U.S. property transactions, essential for both residential and commercial real estate transfers. This contract type is designed to comply with both federal regulations and state-specific requirements, providing a comprehensive framework for property sales. It includes crucial elements such as property details, financial terms, contingencies, and required disclosures. The document is particularly important as real estate transactions must be in writing under the Statute of Frauds, and this contract serves as the primary evidence of the parties' agreement and intentions.
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1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background: Brief context of the transaction and property being sold
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed legal description of the property including address and boundaries
5. Purchase Price: Amount and payment terms including deposits and financing arrangements
6. Closing: Closing date, location, and requirements
7. Title: Requirements for clear title and title insurance
8. Representations and Warranties: Standard declarations by both parties regarding property condition and authority to sell
9. Default: Consequences of breach by either party
10. Notices: How formal communications between parties should be made
1. Financing Contingency: Used when buyer needs to secure mortgage financing - include when purchase depends on buyer obtaining financing
2. Inspection Contingency: Buyer's right to inspect property - include when buyer wants right to inspect before closing
3. Sale Contingency: Makes purchase conditional on buyer selling existing property - include when buyer needs to sell current property first
4. Tenant Rights: Addresses existing tenant situations - include when property is currently tenant-occupied
1. Property Disclosure Statement: Seller's disclosure of property condition and known defects
2. Inventory of Fixtures: List of items included/excluded from sale
3. Title Documents: Copy of title report and related documents
4. Environmental Reports: Any environmental assessments or reports
5. Survey: Property survey and plot plan
6. Lead Paint Disclosure: Required for properties built before 1978
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