The Purchase of House Agreement serves as the primary legal instrument for residential property transactions in the United States. This document is essential when transferring ownership of residential property from seller to buyer, establishing the legal framework for the transaction. It includes critical elements such as property details, purchase price, payment terms, contingencies, and closing requirements. The agreement must comply with both federal regulations (such as RESPA and TILA) and state-specific real estate laws. It's typically used in conjunction with property disclosures, title documents, and other supporting documentation to ensure a complete and legally compliant transaction.
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1. Parties: Identifies the buyer and seller with full legal names and addresses
2. Background: Establishes the context of the sale and basic property information
3. Definitions: Defines key terms used throughout the agreement
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: States the agreed purchase price and payment terms
6. Closing: Details of closing date, location, and requirements
7. Title Transfer: Provisions regarding transfer of title and required documentation
8. Representations and Warranties: Standard declarations by both parties about the property and their capacity to enter the agreement
1. Financing Contingency: Optional section to be included when the purchase depends on the buyer obtaining mortgage financing
2. Inspection Contingency: Optional section covering buyer's right to inspect property and terminate based on findings
3. Sale of Existing Home Contingency: Optional section to be included when purchase is conditional on buyer selling their current home
4. Tenant Rights: Optional section addressing existing tenant situations when property is currently tenanted
1. Property Inventory: List of fixtures and fittings included in sale
2. Property Disclosure Statement: Seller's disclosure of known property defects and issues
3. Title Documents: Copies of relevant title documents and certificates
4. Survey Documents: Property survey and related documentation
5. Environmental Reports: Any environmental assessments or reports
6. HOA Documents: Homeowners Association rules and regulations if applicable
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