Property Sales Agreement

Property Sales Agreement- What to look out for

The first time you glance at a purchase agreement for the property you intend to buy or sell, you may feel overwhelmed. Often a lengthy document, the agreement may contain several unfamiliar terms and concepts. It is imperative that you fully understand these concepts before you sign.
A sale agreement is a document in writing executed, signed and delivered by the parties to the agreement of sale. The document enables the process of sale to go through without any hurdles. Moreover, It gives a right for the purchaser to purchase the property in question on the satisfaction of certain conditions. Therefore, it is a very important step in the real estate process that outlines terms and conditions for the real estate transactions. Subsequently every element of the sale should be covered, the goal is to protect both the buyer and seller and to ensure that all expectations are clear. This document is a fully, legally binding contract. All the terms and conditions included in the agreement of sale must be understood thoroughly by both the parties and obeyed throughout the sale process till the time the sale deed is made. Agreement of sale is the base document on which the sale deed is drafted, While a sales deed is a document prepared at the time of full payment made by the buyer, when the actual transfer of the property takes place.

On the other hand, purchase agreement must outline the property at stake. It should include the exact address of the property and a clear legal description. Additionally, the contract should include the identity of the seller and the buyers, the price as accepted by the seller, method of payment in full or installments, with down payment or without, mortgage or cash. All this information should be detailed on the sales agreement. Although cancellation of the agreement may occur, it must be within the terms of the agreement.

Remember, if the buyer or seller fails to honor the demands stated in the document, he/she may be in default of the contract. Often the agreement has directives on steps allowed to take in case of default from any of the parties, such as pursuing litigation or forfeiting money.

With that said, as a property buyer it is important to protect yourself, consult a lawyer to ensure your interests are clearly defined, then you can proceed to sign the document and get your dream property.

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