The Residential Sale And Purchase Contract serves as the primary legal instrument for residential real estate transactions in the United States. This document is essential when transferring ownership of residential property, whether single-family homes, condominiums, or other residential units. It protects both buyers' and sellers' interests by clearly defining the transaction terms, including property description, purchase price, closing conditions, and contingencies. The contract must comply with both federal regulations (such as RESPA and Fair Housing Act) and state-specific real estate laws, which vary by jurisdiction. It typically includes mandatory disclosures, inspection rights, financing terms, and specific performance obligations for all parties involved.
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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 identification
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed description of the property being sold including legal description
5. Purchase Price: Amount and payment terms including deposit requirements
6. Closing Date and Possession: Specified date for completion of the transaction and transfer of possession
7. Title and Deed: Requirements for clear title and deed transfer process
8. Representations and Warranties: Statements of fact by both parties regarding the property and their capacity to enter into the agreement
9. Default and Remedies: Consequences of breach by either party and available remedies
10. Notices: How and where formal notices between parties should be delivered
11. Governing Law: Specification of applicable state law and jurisdiction
1. Financing Contingency: Terms related to buyer's ability to obtain mortgage financing, including deadlines and conditions
2. Home Inspection Contingency: Terms related to property inspection requirements, timelines, and right to terminate based on findings
3. Sale of Existing Home Contingency: Conditions related to buyer's need to sell existing property before completing purchase
4. Appraisal Contingency: Conditions related to property appraisal meeting or exceeding purchase price
5. HOA Provisions: Terms related to homeowners association membership, fees, and regulations
1. Property Disclosure Statement: Seller's disclosure of property condition and known defects as required by state law
2. Inventory of Fixtures and Fittings: Detailed list of items included and excluded from the sale
3. Lead-Based Paint Disclosure: Federally required disclosure for properties built before 1978
4. Survey or Plot Plan: Property boundaries, improvements, and easements documentation
5. Title Insurance Commitment: Preliminary title report showing current state of title and any exceptions
6. Environmental Reports: Any environmental assessments or reports relevant to the property
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