The Real Estate Purchase and Sale Agreement serves as the primary legal document governing property transactions in the United States. This agreement is essential whenever real property is being transferred from one party to another, whether in residential, commercial, or industrial contexts. The document incorporates federal requirements such as RESPA and TILA compliance, along with state-specific disclosure requirements and local regulations. It provides a comprehensive framework for the transaction, including price, payment terms, contingencies, warranties, and remedies for default. The agreement's structure and content may vary by state to ensure compliance with local real estate laws and regulations.
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1. Parties: Identifies and defines the buyer and seller with full legal names and addresses
2. Background: States the intent of the parties to enter into a real estate transaction
3. Definitions: Defines key terms used throughout the agreement
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: States the agreed purchase price and payment terms
6. Earnest Money: Details of deposit amount, holder, and terms
7. Closing: Closing date, location, and requirements
8. Representations and Warranties: Standard declarations by both parties regarding their capacity and the property
9. Default Provisions: Consequences and remedies for breach of contract
1. Financing Contingency: Optional section specifying terms regarding buyer's ability to obtain financing - include when buyer requires mortgage financing
2. Inspection Contingency: Optional section detailing terms regarding property inspection rights - include when buyer wants inspection rights before closing
3. Sale of Existing Home Contingency: Optional section covering conditions related to buyer selling their current home - include when buyer needs to sell their current home first
4. Tenant Rights: Optional section addressing provisions regarding existing tenants - include when property is currently tenant-occupied
1. Property Disclosure Statement: Seller's disclosure of property condition and known issues
2. Inventory of Fixtures and Fittings: List of items included/excluded from sale
3. Title Documents: Current title documentation and search results
4. Property Survey: Recent survey of the property boundaries and features
5. Environmental Reports: Any environmental assessments or reports - typically included for commercial properties or properties with known environmental issues
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