When it comes to buying or selling a property, one of the most important documents that you will come across is the purchase agreement. This document outlines the terms of the sale, including the price, conditions, and timelines. But who is responsible for drafting the purchase agreement?
In most cases, the purchase agreement is drafted by the buyer`s real estate agent or attorney. However, it is important to note that the seller`s agent or attorney may also draft the agreement. This ultimately depends on the state in which the sale is taking place and any agreements made between the parties involved.
Before drafting the agreement, both parties must have already come to an agreement on the price and other terms of the sale. The agent or attorney will then use this information to draft the purchase agreement. It is important to note that this document is legally binding, so it is imperative that all terms are clearly outlined and agreed upon by both parties before signing.
Some of the key components that are typically included in a purchase agreement include:
– Purchase price: This is the agreed upon price that the buyer will pay for the property.
– Earnest money deposit: This is a deposit made by the buyer to show good faith and commitment to the sale.
– Closing date: This is the date on which the sale will be finalized and the property will be transferred to the buyer.
– Contingencies: These are conditions that must be met in order for the sale to be completed. Examples include the buyer securing financing or the property passing a home inspection.
– Property disclosures: The seller must disclose any known issues or defects with the property.
It is important for both parties to carefully review and negotiate the terms of the purchase agreement before signing. Any changes or revisions should be made in writing and agreed upon by both parties.
In summary, the responsibility for drafting the purchase agreement typically falls on the buyer`s real estate agent or attorney, although the seller`s agent or attorney may also draft the agreement. It is important for both parties to carefully review and negotiate the terms of the agreement before signing, as this document is legally binding.