What a Land Sales Agreement Entails
A sale agreement is a document you’ll receive as a buyer after mutual acceptance of an offer. The document states the final sale price and all terms of the purchase. Moreover, this agreement assures you that the seller won’t back out, and neither will you.The sales agreement usually has the following:Final Sale Price
This is the purchase price that the buyer and seller have decided upon. Be aware that this pricing could alter in the course of discussions leading up to the close. For example, you, as the buyer, might be able to bargain for a lower purchase price if the home inspection reveals a problem.Money Details
The agreement will include information on the money deposit, such as the amount and instructions for making the deposit. In most areas, the buyer will need to deposit a personal or cashier’s check within one to three days of mutual acceptance. The check will be held by a neutral third party until the completion of the deal.Closing Date
On your closing date, the purchase will be completed, the transfer of property will be recorded with the local government, and the seller will receive the money for their home. Usually, you’ll sign all the necessary paperwork a day or two before your closing date. Your closing date may change, however, due to unforeseen events, such as your financial paperwork taking longer than expected.Title Insurance Company
The agreement will contain details about your title firm. Although it might be customary in your area for the seller to choose a title company, you, the buyer, always have the option. If you have any inquiries concerning selecting a title company, you ought to speak with your representative or attorney.Title Condition
The agreement will include a promise that the seller will provide a clear or marketable title of ownership to the buyer.Sale Agreement Contingencies
There are requirements that need to be fulfilled before the house purchase may be finalized.
Both the seller and the buyer may terminate the deal if one of these conditions is not fulfilled.
These are a few instances of typical situations, but use caution—never presume that your contract contains these clauses.
Consult your attorney or agent at all times.
In such cases, the buyer’s agent drafts the agreement while the escrow agent manages the closing procedure.
In other situations, the document will be prepared by the lawyers who manage the closing.
The paperwork will be signed by the buyer, seller, and each of their agents.
Additionally, before you ever seal a contract, ask your agent to go over the terms of the agreement with you.
READ: 8 Documents You Need Have Before When Buying Land in Kenya
