Selling a house can be an exciting but stressful process. To ensure a smooth transaction, it`s important to have a sale of house agreement in place. This legal document outlines the terms and conditions of the sale, protecting both the buyer and the seller. In this article, we`ll provide a sample sale of house agreement and discuss key elements to include.
Sample Sale of House Agreement
[Date]
This Sale of House Agreement (the « Agreement ») is entered into between [Seller Name] (« Seller »), and [Buyer Name] (« Buyer »), on the date of its execution.
1. Property. The Seller agrees to sell and convey to the Buyer the following real property located at [Address] (the « Property »).
2. Purchase Price. The Buyer agrees to pay the Seller the sum of [Purchase Price] for the Property. The parties agree that the deposit paid by the Buyer to the Seller on [Date] shall be applied towards the purchase price.
3. Closing. The closing of the transaction shall take place on [Closing Date] at [Closing Time] at the office of [Closing Agent], or at such other place as may be mutually agreed upon by the parties.
4. Representations and Warranties. The Seller represents and warrants to the Buyer that: (a) the Seller has good and marketable title to the Property; (b) the Property is free from all liens and encumbrances; (c) there are no outstanding claims or assessments against the Property; and (d) all improvements on the Property have been constructed in accordance with applicable laws.
5. Condition of Property. The Property is being sold in « as-is » condition, and the Seller makes no representations or warranties, express or implied, regarding the condition of the Property.
6. Title and Possession. The Seller shall transfer title to the Property to the Buyer by warranty deed, free and clear of all liens and encumbrances, at the closing. Possession of the Property shall be delivered to the Buyer at the closing, subject to the rights of tenants, if any.
7. Closing Costs. The Buyer shall be responsible for all closing costs associated with the purchase of the Property, including but not limited to, recording fees, transfer taxes, and title insurance premiums.
8. Default. In the event of a default by either party, the non-defaulting party shall have the right to terminate this Agreement and retain all deposits as liquidated damages.
9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
10. Entire Agreement. This Agreement constitutes the entire understanding between the parties and supersedes all prior negotiations, understandings, and agreements. This Agreement may not be amended or modified except in writing signed by both parties.
In witness whereof, the parties have executed this Agreement as of the date first above written.
[Seller Name]
[Buyer Name]
Key Elements to Include in a Sale of House Agreement
When creating a sale of house agreement, it`s important to include certain elements to protect both the buyer and the seller. Here are some key elements to consider:
1. Property Description: Clearly describe the property being sold, including its location and any relevant details.
2. Purchase Price: Specify the purchase price and how it will be paid.
3. Closing Details: Include the date, time, and location of the closing and any other relevant details.
4. Representations and Warranties: Outline any representations and warranties the seller is making about the property.
5. Condition of Property: Indicate whether the property is being sold in « as-is » condition or with any warranties.
6. Title and Possession: Explain how the title to the property will be transferred and when possession will be granted.
7. Closing Costs: Specify who will be responsible for paying the closing costs.
8. Default: Detail what happens if either party defaults on the agreement.
9. Governing Law: Indicate which state`s laws will govern the agreement.
10. Entire Agreement: Include a clause stating that the agreement constitutes the entire understanding between the parties and cannot be amended except in writing.
In conclusion, a sale of house agreement is a necessary document to protect both the buyer and the seller during a real estate transaction. By including key elements such as the property description, purchase price, closing details, and representations and warranties, the agreement can help ensure a smooth and successful sale.