Property Agreement Sample
When it comes to buying or selling a property, a property agreement is a crucial document that outlines the terms and conditions of the transaction. It is a legal binding document that protects the interests of both the buyer and the seller. In this article, we will provide you with a sample property agreement and some important things to keep in mind while drafting one.
Sample Property Agreement
[Insert Name of Agreement]
This [Insert Name of Agreement] (the « Agreement ») is made and entered into on [Date of Agreement] by and between [Seller’s Name], whose address is [Seller’s Address] (« Seller ») and [Buyer’s Name], whose address is [Buyer’s Address] (« Buyer »).
1. Property Description
The property to be sold is described as follows:
[Insert Property Description, including Lot Number, Address, and any other relevant details]
2. Purchase Price
The purchase price for the Property is [Insert Purchase Price]. The purchase price will be paid in the following manner:
[Insert Details of Payment, including Down Payment, Installments, and Interest Rate if any]
3. Closing Date
The closing for this transaction will take place on [Insert Closing Date] at [Insert Closing Time]. The place of the closing will be [Insert Closing Place].
4. Title
The Seller warrants that they have good and marketable title to the Property, and will transfer the title to Buyer free from all encumbrances, liens, or claims of others.
5. Inspection
The Buyer shall have the right to inspect the Property within [Insert Inspection Period]. If the Buyer is not satisfied with the results of the inspection, they have the right to terminate this Agreement.
6. Default
If either party defaults on this Agreement, the non-defaulting party has the right to terminate this Agreement and receive any earnest money paid.
7. Governing Law
This Agreement shall be governed by the laws of [Insert State].
8. Entire Agreement
This Agreement represents the entire understanding between the parties, and supersedes all prior negotiations, discussions, and agreements.
9. Amendments
This Agreement may only be amended in writing and signed by both parties.
10. Binding Effect
This Agreement shall be binding on the parties, their heirs, executors, administrators, successors, and assigns.
In Witness Whereof, the parties have executed this Agreement as of the date and year first above written.
Seller:
_____________________
[Insert Name, Title, and Date]
Buyer:
_____________________
[Insert Name, Title, and Date]
Important Considerations While Drafting a Property Agreement
1. Clearly Define the Property: The description of the property in the agreement should be accurate and comprehensive. It should include the lot number, address, and any other relevant details to avoid any ambiguity.
2. Purchase Price and Payment Terms: The purchase price should be clearly mentioned, along with the payment details, such as the down payment, installments, and interest rate, if any.
3. Closing Date and Place: The date and place of the closing should be specified in the agreement.
4. Title: The seller should warrant that they have good and marketable title to the property and will transfer the title to the buyer free from all encumbrances, liens, or claims of others.
5. Inspection: The buyer should be given the right to inspect the property within a specified period. If the buyer is not satisfied, they should have the right to terminate the agreement.
6. Default: The agreement should specify what happens if either party defaults on the agreement.
7. Governing Law: The agreement should state which state laws govern the agreement.
8. Entire Agreement: The agreement should be comprehensive and represent the entire understanding between the parties.
9. Amendments: The agreement should state that it can only be amended in writing and signed by both parties.
10. Binding Effect: The agreement should be binding on the parties, their heirs, executors, administrators, successors, and assigns.
Conclusion
A property agreement is a crucial document that outlines the terms and conditions of a property transaction. It is important to carefully draft the agreement to ensure that all parties’ interests are protected. The sample agreement and important considerations mentioned in this article should help you in drafting a comprehensive and effective property agreement.