What is a Real Estate Purchase Agreement?
A real estate purchase agreement in Albuquerque, New Mexico is usually the first document in a string of documents needed to purchase real estate. Whether you’re utilizing owner financing or not, the first document in the stack of documents will be the purchase agreement. The purchase agreement is submitted by the potential buyer with the initial terms they are willing to offer to purchase the real estate. If the seller agrees to those terms he will sign and return the purchase agreement, if he doesn’t agree to any one of the terms the buyer will reject the purchase agreement and, typically, return a counter-offer to the purchase agreement. Then, it’s the buyers turn to either accept the counter-offer or reject the counter-offer and counter the counter-offer. This can continue until an agreement is met, or both parties decide to reject the terms and walk away from the deal and pursue other opportunities.
There are a few items that must be included in a purchase agreement:
Names of the buyers and sellers involved.
A legal description.
Purchase amount and terms.
Offer expiration date.
Signatures of everyone involved.
This document is also where you can create unique terms to the agreement:
Earnest money
Property terms and conditions
Allowances, restrictions, and boot (like-kind assets)
The purchase agreement is used to create the remaining documents so complete and correct information is very important. Be sure to read through the entire purchase agreement and have a lawyer review before signing. This is an important step in the buying and selling of real estate and should not be over looked. If you have any questions about the terms of the real estate purchase agreement you should have an attorney, or tax professional, in Albuquerque, New Mexico to review your options with you.