The Offer To Purchase And Contract is a fundamental document in U.S. real estate transactions, used when a prospective buyer wishes to formalize their intent to purchase a property. This document is typically used at the beginning of a real estate transaction and transforms into the binding contract upon acceptance by the seller. It must include specific elements required by state and federal law, such as property description, purchase price, closing terms, and any contingencies. The document protects both parties' interests and clearly outlines all terms and conditions of the proposed transaction.
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1. Parties: Identification of buyer and seller with complete legal names and addresses
2. Background: Brief context of the transaction and property description
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: Amount and payment terms
6. Earnest Money: Details of deposit amount and handling
7. Closing Date: Specified date or timeline for closing
8. Due Diligence Period: Timeframe and terms for buyer's investigation
1. Financing Contingency: Terms and conditions if purchase depends on buyer obtaining financing
2. Sale of Existing Home Contingency: Conditions related to buyer's need to sell existing property
3. Rental Agreement: Terms for post-closing occupancy by seller
1. Property Disclosure Statement: Seller's disclosure of property condition and known issues
2. Fixture List: Detailed list of items included/excluded from sale
3. Lead-Based Paint Disclosure: Required for properties built before 1978
4. Survey: Property boundary and improvement locations
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