What Are the Most Requested Terms in Real Estate Purchase Agreements?
Clients often ask lawyers to include special terms in their real estate purchase agreements. ContractsCounsel's project data shows what they ask for most. From seller financing and carry back provisions to payment conditions, these terms reflect the real priorities clients highlight.
1. Seller Financing and Carry Back Provisions
Buyers might request seller financing options. They want details about interest rates, payment schedules, and security agreements in case regular financing isn’t available.
Takeaway: Always review seller financing terms with a lawyer to make sure they are fair and legal.
2. Assignment Clauses
Some buyers want to be able to transfer their contract to someone else. This is common for investors who might not plan to close on the property themselves.
Takeaway: Check if your agreement allows assignments and under what conditions. This avoids problems before closing.
3. Inspection, Appraisal, and Financing Contingencies
Contingency clauses are common. They allow buyers to cancel or change the deal if the inspection reveals problems or there are financial issues.
Takeaway: Contingencies protect both sides by setting rules for how issues are handled.
4. Deposit and Payment Terms
Clients want clear details about deposits and payments, specifically in terms of when the money is due and when it becomes non-refundable.
Takeaway: Clear deposit rules in the contract can help you to prevent disputes. Stating when and how deposits are non-refundable is crucial.
5. Property Condition and Defect Protections
The property could have issues like mold or asbestos. Buyers want protection against hidden problems.
Takeaway: Always require full disclosure from the seller and include inspection rights in the contract.
6. Leaseback, Personal Property, and Trust Arrangements
Sometimes a seller wants to stay in the property for a short time after closing. Some deals include additional items like trust arrangements.
Takeaway: List all post-closing details in the agreement so both sides know what to expect.
7. Closing Costs and Commission Splits
Both buyers and sellers want to know who will pay for closing costs, title fees, and real estate commissions. By having clear rules, you can bypass surprise expenses at the end of the deal.
Takeaway: Specify how closing costs and commissions will be divided before settlement.
Why This Matters
Clients want their real estate agreements to be clear and fair. Simple terms make it easier to understand each person’s duties. Clear clauses about money, inspections, and property conditions reduce risk. They also help the deal close smoothly.
Get Help With Your Real Estate Purchase Agreement
You can get help writing or reviewing a real estate purchase agreement. Post your project on ContractsCounsel to connect with real estate lawyers. They can make sure your contract fits your transaction and protects your interests.
