What is Property Sale Agreement Drafting?
A property sale agreement is a legal contract between a buyer and seller that establishes what terms and conditions apply for transferring immovable property. These include pricing, property descriptions, and more.
If you need to draft a property sale agreement, you should read the rest of this article. Explore the key elements to include in the contract, how to draft it, and how a lawyer will assist you with the contract drafting process.
What are Key Terms in a Property Sale Agreement?
A property sale agreement usually includes the following essential information:
- Parties. Identify both parties by their legal names. Include their contact details.
- Property description. Describe the property with a legal description and other details such as its physical address.
- Purchase price and payment. Outline all payment terms, such as the total cost, down payment amount, and financing details, such as a mortgage.
- Earnest money deposit. Specify the deposit held in an escrow account until closing that is usually a percentage of the purchase price. It serves as an act of good faith.
- Contingencies. Explain what conditions must be met for the sale to go through.
- Closing costs. Include what closing costs are included and who will pay them.
What are Tips for Drafting a Property Sale Agreement?
Now that you’ve established the key terms to include in a property sale agreement, you should provide additional information. Here are some drafting tips to consider.
Include a Property Description
Make sure you provide comprehensive details about the property, such as its legal description, parcel identification number, street address, and storage areas.
State the Purchase Price
State the total purchase price, then flow into other payment terms to prevent misunderstandings. Explain the earnest money deposit amount, payment schedules, and what amount is payable at closing.
Establish Clear and Reasonable Deadlines
Make sure your agreement sets clear and fair deadlines for various tasks, such as conducting inspections, gaining financing approval, and closing the deal. If you require extensions, the agreement should specify how to agree on them.
Address Property Inspections
You must specify the buyer’s inspection rights and what seller disclosures exist. Check all applicable state and federal disclosure requirements that apply to the agreement.
Include Default Provisions
Explain what constitutes a breach and its consequences, such as if there are opportunities to cure and what available remedies apply. Check this against how the earnest money deposit will be handled in the event of a breach.
You should also specify the dispute resolution that’s selected for parties should they engage in disagreements they can’t resolve on their own.
Should You Hire a Lawyer to Draft Your Property Sale Agreement?
If you want to reduce your legal and financial risks, it’s in your best interests to hire a lawyer to draft your property sale agreement for you.
A lawyer can do various things during the drafting process, such as by:
- Keeping the agreement legally sound. A lawyer will include clear, enforceable terms that reflect the parties’ intentions. They’ll make sure that all the agreement terms are aligned with all relevant state and local laws.
- Protecting the parties’ interest. They’ll clarify all payment obligations and contingencies, as well as determine how to handle breaches.
- Identifying risks. A layer is skilled at flagging any issues in the arrangement that could result in challenges, such as boundary disputes or property ownership issues.
- Drafting contingencies. A lawyer will ensure all inspections, financing requirements, and other contingencies are clearly defined.
- Addressing disclosures. They’ll help you determine what disclosures are required and how known defects or other red flags must be addressed.
- Reviewing your property sale agreement. If you’ve drafted your agreement, you should hire a qualified lawyer to review it for you. This will give you peace of mind that all its terms are clear, legally valid, and balanced.
- Coordinating with other professionals. A lawyer will work with other professionals, such as lenders and real estate agents, depending on what’s required for your specific arrangement. This can aid the transaction to go through smoothly.
Where to Find a Lawyer for Property Sale Agreement Drafting
If you need to hire a lawyer to draft your property sale agreement, you don’t have to call traditional law firms in your area. You can use an online legal platform such as ContractsCounsel to give you access to a range of lawyers who are skilled and experienced.
ContractsCounsel is one of the largest online legal marketplaces that connects you with a curated network of lawyers. All lawyers on the platform have been vetted and have extensive experience to assist you.
To ask a lawyer on the platform to draft your property sale agreement, here are the steps to follow:
- Visit the ContractsCounsel marketplace.
- Select ‘One-time project’ and ‘Create or update contract.’ Alternatively, you can hire a lawyer to review your contract if you’ve drafted it by choosing ‘Review contract.’
- Post your project for free. Specify some details so that you match with suitable lawyers, such as the type of property included in the agreement.
- Wait for bids. You’ll receive multiple bids from lawyers directly on the platform who are ready to work on your project.
- Review the platform’s lawyer data. This information includes the lawyers’ location, field of expertise, credentials, years of experience, and client ratings for previous projects completed on the platform.
- Select a lawyer based on the lawyer research. Hire one who meets your requirements to draft or review your property sale agreement for a flat fee.