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Why do you need to use a Purchase Agreement?
Purchase Agreements ensure proper and legal execution of the deal between the seller and the buyer. It includes important information like a detailed description of the property, payment terms, and the possession date, which specifies both parties are strongly committed to the deal. A properly drafted Purchase Agreement fully protects the rights and interests of both parties, making sure each party has the right to take legal action if the other party causes some damage.
Purchase Agreements also help to keep a record of the real estate for tax purposes. Selling property may have an impact on your tax file which you need to report to the Internal Revenue Service (IRS). Documenting your real estate transactions can save you time as well as legal actions.
When do you need to use a Purchase Agreement?
If you are either selling or purchasing any real estate property, you need to document your financial transactions. Though Purchase Agreements are not required for all transactions but usually recommended for single large purchases particularly for real estate. A written contract will give each party a clear detail regarding the sale and how the transaction will take place.
What are the main things that go on a Purchase Agreement?
The Purchase Agreement should include the following details:
- Details about the Seller and the Buyer (Name, Address, etc.)
- Information on the item being sold
- When will the item be delivered to the Buyer
- How much is the Buyer paying for the item
- Types of Payment such as cash, shares, etc
- Dispute resolution
Besides this, the Purchase Agreements also include the state’s laws that will execute the Agreement, payment plan (any installments or any down payments) and Tax information which the buyer is supposed to pay.
What are the most common mistakes to avoid?
There are the following mistakes that people most commonly make when writing real estate purchase agreements. Making any one of these mistakes will put your property at stake and a risk to lose your earnest money.
- Doing a deal with the wrong person
- Incorrect names & address of the Buyer or Seller
- Not choosing the right Buy-Sell Agreement
- No effective Dispute Resolution
- Not specifying the closing requirements
- Failure to include all required parties
Do I need to use a lawyer, accountant, or notary to help me?
You do not need a lawyer, accountant, or notary to write a Purchase Agreement for you. Using an online tool like ours creates a legally binding form, and saves you money because you don’t have to hire a lawyer.
Why use our Purchase Agreement generator?
Our easy to use purchase agreement generator was created by a staff of lawyers and business experts, and you can have a one for a fraction of the cost you would pay an attorney. Our tool has a subscription plan so you can create unlimited purchase agreements at a low cost.
We also offer 100% money back guarantee, and a free 14-day trial.