What is Real Estate Sale Agreement Drafting?
A real estate sale agreement is a contract that explains the terms for how to transfer real estate property between a seller and buyer. It must clarify the property in question, specify the financing terms, and outline how to navigate closing the deal.
Read the rest of this article for key information to include in a real estate sale agreement, how to draft it for clarity, and how a qualified lawyer will assist you with the drafting process.
What Information Should You Include in a Real Estate Sale Agreement?
A real estate sale agreement usually contains the following information:
- Property. Describe the property, such as with its physical address and formal title.
- Purchase price. State the property’s final agreed-on monetary amount.
- Deposit. Clarify the portion of money that must be paid upfront.
- Financing. Explain if the transaction involves a cash purchase or requires a mortgage.
- Inspections. Include time frames in which the property can be assessed, such as for structural defects.
- Conditions. Outline what conditions must be met before the transaction goes through, such as getting approved for a home loan.
What are Tips for Drafting a Real Estate Sale Agreement?
When drafting a real estate sale agreement, make sure that both the transaction and the parties’ obligations are specific and clear. Here are some tips to bear in mind during the drafting process.
Include Property Details
It’s worth fleshing out the property description so that it’s clear what real estate is covered by the agreement. Include the relevant title or lot information, what fixtures are included, if there are storage or parking spaces, and more. It’s also worth listing anything that’s excluded from the sale as this prevents uncertainty.
Verify the Purchase Price
Provide the total purchase price, how it will be paid, and approved payment methods. If a deposit is included, which is standard in these agreements, you must be clear about its amount, deadline, and if any conditions for release apply.
Provide the Closing Process
You should specify the transfer date and what’s required of parties to close, such as signing documents and having a final property walk-through.
Clarify Expenses
It’s important for both parties to know who is responsible for certain payments. These include transfer costs, taxes, existing liens, or property charges. Be as comprehensive as possible so that nothing is left uncertain.
Include Seller Representations
For clarity and transparency between parties, the agreement should mention what the seller guarantees to the buyer. This can include their authority to sell the property and if there are any existing leases on the property.
These statements must be handled carefully and truthfully because they serve to reduce uncertainty and encourage disclosure.
Address Default Remedies
In the agreement, state what happens if something goes wrong, such as if the buyer doesn’t make payments, the seller refuses to commit to the transfer, or if either party violates the agreement terms. Make sure you include termination rights, damages, and any other remedies.
Should You Hire a Lawyer to Draft Your Real Estate Sale Agreement?
If you’re dealing with a complex transaction or you’re unsure of how to draft a professional real estate sale agreement, hiring a lawyer to draft it for you is advisable. A lawyer will conduct various activities during the drafting process, such as:
- Addressing financing, contingencies, and complex terms to protect your interests.
- Writing clear terms in the agreement so that there’s no ambiguity.
- Complying with all applicable real estate and contract laws to prevent legal disputes.
- Identifying risks you might encounter during the agreement term and allocating responsibilities between parties.
- Conducting due diligence, such as by identifying important issues involving leases, liens, disclosures, and restrictions.
- Reviewing any proposed terms for the agreement and negotiating them with the other party.
- Including dispute-resolution methods so that you can minimize your risks of disputes in the future that could cost you or be time consuming.
- Conducting document coordination. A lawyer will check that the agreement is consistent with all other documents, including closing documents.
- Reviewing your real estate sale agreement for clarity. If you’ve already written the agreement, hire a lawyer to look over it to give you confidence to sign it.
Where to Find and Hire a Reputable Lawyer for Real Estate Sale Agreement Drafting
If you want to hire a lawyer to draft your real estate sale agreement, you might wonder who to ask for lawyer recommendations. Instead of doing that, you can use an online legal platform that provides you with easy access to lawyers who are available to draft your agreement for you.
ContractsCounsel is one of the largest online legal marketplace that connects you to a curated network of vetted lawyers. All lawyers on the platform are available to draft your agreement so that it’s clear, specific, and legally valid to reduce your risks.
Here are the easy steps to follow if you want to ask a lawyer on the platform to draft your agreement:
- Go to the ContractsCounsel marketplace, where it’s free to post a project.
- Select ‘One-time project’ and ‘Create or update contract.’ Note that if you want to request a review of your agreement, you’ll choose ‘Contract review.’
- Post your project. Include some details of what you require so that you can match with suitable lawyers.
- Wait for bids. Without having to find a lawyer, lawyers directly on the platform will send you multiple bids to work on your project.
- Review the lawyer information. The platform provides a range of information about the lawyers, which includes their location, field of expertise, years of experience, credentials, and client ratings for previously completed projects on the platform.
- Select a lawyer and hire them to draft your real estate sale agreement for a flat fee.
