Offer to Purchase Real Estate Contract – What to Look For

Offer to Purchase Real Estate Contract – What to Look For

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An important aspect of a home purchase is the Offer to Purchase form that the buyer submits to the seller. It is the first of the documents that are used in buying a house. It is basically a sales contract between the buyer and the seller. This document needs to be signed by both parties to be a valid contract.

An Offer to Purchase form is a very critical legal document that states the price the buyer is going to pay. It will also include the mode of payment, advance amount, date of payment, property inspections, terms and conditions, repairs, date of closing, and many other details pertinent to the sale of the property. The most vital element of the Offer to Purchase form is the price of the real estate property that the person intends to purchase. The buyer must specifically state the amount of money that he is willing to pay for the property. He should also clearly state the down payment that he is willing to make. Another aspect of price is how you will be paying it. Clearly state whether you will pay in cash, check, property, mortgage or promissory notes.

Other than the price details, an Offer to Purchase form should contain the following information:

· Full names of both the parties involved in the transaction

· Complete addresses and contact details of the buyer and seller

· Description of the property and its physical and legal addresses

· Tentative date for transferring title and possession of property

· Details of personal properties included along with the house or land

· Amount of time to accept the offer to purchase; specifies the expiration date of the offer

· Details for an inspection of the property by the buyer

· Contingency clauses

While using an Offer to Purchase form to write the contract, make sure that the form is accepted by the law in your state. State laws regarding real estate contracts and forms can vary and your form should conform to the laws in which the transaction is taking place. Get the help of professional real estate agents or attorneys to ensure that you are using the right Offer to Purchase form currently in use in that particular state. If you download forms from the Internet, you need to check its validity before using them to write your contract. You will also need professional help in filling out the form as incomplete or incorrect forms cannot be deemed legal or valid.

The most significant part of any real estate form is that it should be signed by both the parties with the correct date. An unsigned contract will have no validity.

You can get the Offer to Purchase form from real estate agents or you can buy them online. Most reliable real estate websites offer forms as a package; you can also buy them separately as per your requirement. Package deals are much cheaper than buying one form at a time. Since you will need a lot of forms to buy a house, it is a good idea to buy the full set.



Source by Mohd Aizat Hassan

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