Write your own Purchase Agreement without any difficulties completing the sale of your property. Fill in your printable template to easily create your legally binding document now.
Last Update May 13th, 2023
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- What Is a Purchase Agreement
- Types of Purchase Agreements
- Difference Between a Purchase Agreement and a Bill of Sale
- How to Write a Purchase Agreement
- Addendums and Disclosures in a Purchase Agreement
- Sample Purchase Agreement Form
- Purchase Agreement FAQs
What Is a Purchase Agreement
If you are planning to sell or buy an item that is worth a lot, it is important to use a Purchase Agreement.
This legal document lays out the terms and conditions of a sale, including the amount that the purchaser will pay. With those details, the document contains all the most important information about the sale.
After signing the document, the person buying the property must provide a down payment known as an earnest money deposit.
This document is considered a binding legal contract as well.
This document is also known by 2 other names:
Purchase Contract
Purchase and Sale Agreement
Types of Purchase Agreements
There are different types of Purchase Contracts such as Vehicle Purchase Agreements and Asset Purchase Agreements.
You can use these separate agreement contracts when you need a specific type of transaction.
Asset Purchase Agreement (APA)
The Asset Purchase Agreement finalizes the terms and conditions of a sale regarding a person’s assets. These assets could be an entire business or company, or part of one.
Real Estate Purchase Agreement
Apart from a home, other types of real estate can be purchased.
To buy or sell buildings, complexes, etc., a Real Estate Purchase Agreement is used to complete the transaction.
Sale of Goods Agreement
A Sale of Goods or a Goods Purchase Agreement is a transfer of goods in exchange for money.
This is used when a purchaser wants to buy a specific object. For example, if you would like to buy a refrigerator, you can use this type of contract.
Land Purchase Agreement
To outline an agreement to purchase land, you would use a Land Purchase Agreement.
Companies often buy plots of land to construct offices or factories.
If you want to buy land, you can use this contract.
Difference Between a Purchase Agreement and a Bill of Sale
A Bill of Sale and a Purchase Agreement are similar documents that aid in the completion of a sale.
What is the difference between a Purchase Agreement and a Bill of Sale?
The major difference is a Bill of Sale is its purpose comes after completing the transaction and a Purchase Agreement before.
With a Purchase Agreement, you understand what is the property is and for how much. The Bill of Sale acts as the receipt and is usually part of the contract.
When you make your Purchase Agreement, remember to also include a Bill of Sale at the end. That way, both parties have a receipt of the sale.
How to Write a Purchase Agreement
Creating a legal document normally requires professional help.
That is why LawDistrict provides the following expertly made instructions explaining how to fill out a Purchase Agreement.
This way, you won’t miss any essential details when you make your document.
Names and Dates of Purchaser and Seller
Include the date you make the document. Also, write both names clearly on the document.
Description of the Property Being Sold
After a statement that expresses you agree to a fee for the property, write a description of the property being sold. Closing Date
Define the closing of the sale. This states when the deal will be finalized and how. It can be done in person, by mail, or by electronic transmission.
Different Payment Methods
List the payment methods that can be used. Include a section where you can write a payment schedule as well.
Where to Send Notices
Provide contact information, including names and addresses. This way notices, waivers, claims, demands, and any other communication can be mailed.
Choice of Law
Write a statement expressing the purchase was made based on the laws of the state the purchase is being made.
Claims or Disputes
Make a section on claims or disputes and how they can be resolved through the following methods:
Litigation
Mediation
Arbitration
Signatures of Both Parties
Sign the agreement: Both parties must sign the contract at the bottom of the document.
Use our Purchase Agreement template to make this document mistake-free and without any difficulties.
Addendums and Disclosures in a Purchase Agreement
To ensure that your Purchase Agreement remains valid, addendums and disclosures usually form part of the document.
In some cases, disclosures are required by law to be included in this type of agreement.
Two examples of disclosures are:
Property Disclosure Statement
Addendums are added to explain a certain condition that must be met, or the deal may not be valid.
They are included when a change needs to be made to the original terms and conditions. A change could be considered an expansion or an amendment.
It needs to be signed by both parties.
Sample Purchase Agreement Form
If this is the first time you are making a Purchase Agreement, a good idea is to look at an example.
You may have asked yourself, what does a purchase agreement look like?
We include a free sample for to examine below.
Purchase Agreement FAQs
To further clarify what a Purchase Agreement is, we have responded to some of the most frequently asked questions about the document.
Check the responses below to better understand Purchase Agreements.
Who Writes the Purchase and Sale Agreement?
Typically, the buyer is the one who writes the contract, however, once an agreement is reached either party could.
An agent or lawyer can write the document, but this can be an expensive option.
Using our template to make a Purchase and Sale Agreement is much simpler and cheaper.
How to Terminate a Purchase Agreement
A Purchase Agreement cannot be terminated unless both parties agree.
If a Purchase Agreement is canceled, it is normally because of a failure to pay a deposit or material defects.
Who Signs and Purchase and Sale Agreement First?
The party that first signs the document is the one who sends the agreed-upon offer. Usually, the buyer is the first one to sign, but it depends on who agrees on an offer first.
Why Does the Closing Agent Review the Purchase Contract?
The purpose of reviewing the contract is to make sure that all the language and terms are clear.
A service agent is a professional that can double-check that the agreement is well written and there are no tricks for either party.
If you want to make a clear and precise document, use our template to make your document fair to all parties involved.