The Real Estate Purchase Agreement is a fundamental document in U.S. property transactions, essential for both residential and commercial real estate transfers. This agreement is required in all 50 states, though specific requirements vary by jurisdiction. It serves multiple purposes: documenting the agreed-upon terms of sale, protecting both parties' interests, satisfying lender requirements, and ensuring compliance with federal and state real estate laws. The document typically includes property description, purchase price, financing terms, inspection rights, closing conditions, and required disclosures. A properly drafted Real Estate Purchase Agreement is crucial for avoiding disputes, ensuring clear title transfer, and meeting legal requirements for property transactions.
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1. Parties: Identifies and defines the buyer and seller with full legal names and addresses
2. Background: Provides context for the transaction and property description
3. Definitions: Defines key terms used throughout the agreement
4. Property Description: Detailed legal description of the property being sold including address, boundaries, and legal identifiers
5. Purchase Price: States the agreed purchase price, payment terms, deposits, and any adjustments
6. Closing Date: Specifies the date of closing, transfer of ownership, and related logistics
7. Due Diligence: Outlines buyer's inspection rights, timeline, and property investigation period
8. Representations and Warranties: Statements of fact by both parties about the property condition and transaction
9. Default and Remedies: Consequences of breach by either party and available remedies
1. Financing Contingency: Terms and conditions regarding buyer's ability to obtain mortgage financing
2. Sale Contingency: Conditions related to the sale of buyer's current property before completing this purchase
3. Tenant Rights: Provisions regarding existing tenants, leases, and security deposits
4. Property Management: Terms regarding ongoing property management during transition period
5. HOA Provisions: Special provisions related to Homeowners Association membership and requirements
1. Schedule A - Property Inventory: Detailed list of included fixtures, fittings, and personal property
2. Schedule B - Title Exceptions: List of existing easements, restrictions, and encumbrances on the property
3. Schedule C - Property Disclosure Statement: Seller's mandatory disclosures about property condition and known issues
4. Schedule D - Environmental Reports: Environmental assessments and related documentation
5. Schedule E - Survey: Property survey, plot plan, and related documentation
6. Schedule F - Lead Paint Disclosure: Mandatory lead paint disclosure for properties built before 1978
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