Special offer

What is a Sales Contract or Purchase Agreement

By
Real Estate Agent with F.C. Tucker Company

An offer to purchase spells out all of the details of the transaction. If, for example, you want to be sure that the washer and dryer are included in the sales price of the home, that intention must be specified in your original offer. A verbal agreement is not enough.

An offer to purchase typically includes:

  • The buyer's name and statement of intent to purchase the property
  • The address of the property
  • The purchase price and how it is to be paid (e.g., amount of earnest money, where it will be deposited, amount of down payment, amount of mortgage, terms of the loan, etc.)
  • A provision for the closing of the transaction and the transfer of possession of the property to the buyer by a specific date
  • A provision for title evidence
  • A provision for the completion of the contract should the property be damaged or destroyed between the time of signing and the closing date
  • A statement of remedies available in the event of default
  • Dated signatures of all parties
  • An expiration date and time (at which point the offer will no longer be valid if the seller has not responded with either an acceptance or a counteroffer)
  • All contingencies (e.g., no major defects uncovered by an inspection or title problems discovered in the title search)

It may also include:

  • Personal property included in the transaction (e.g., refrigerator, dining room chandelier, storage units in the garage, etc.)
  • Any real property to be removed by the seller before closing (e.g., a storage shed)
  • The transfer of any applicable warranties
  • The identification of any leased equipment that must be transferred to the purchaser or returned to the lessor (e.g., a water softener or security system)
  • Closing or settlement instructions
  • The transfer or payment of any outstanding taxes or special assessments
  • The buyer's right to inspect the property shortly before closing

Any offer may be revoked at any time before it has been accepted. Once the seller acknowledges acceptance of the offer by signing it, the offer to purchase becomes a valid sales contract.

For more information on buying your Indianapolis area home contact Kammeyer Realty Group at 317-570-3800 or visit www.KammeyerRealtyGroup.com

Comments (1)

Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Interesting post and a good reminder to many. Folks who are not in the business should read this blog so they understand the process.

Aug 09, 2010 02:08 AM