The Real Estate Agreement of Purchase and Sale is a fundamental document in U.S. property transactions, used whenever real property is being transferred between parties. This contract type must comply with federal regulations such as RESPA and TILA, as well as state-specific real estate laws. It includes critical information about the property, price, closing conditions, contingencies, and obligations of both parties. The agreement serves as the cornerstone document protecting both buyer and seller interests, ensuring clear documentation of all transaction terms, and providing legal recourse if either party fails to meet their obligations.
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1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background: Context of the transaction and property identification
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: Amount and payment terms including deposit details
6. Closing: Date, location, and requirements for closing
7. Title: Requirements for clear title and title insurance
8. Representations and Warranties: Standard declarations by both parties
9. Default and Remedies: Consequences of breach by either party
1. Financing Contingency: Terms related to buyer's ability to obtain financing
2. Inspection Contingency: Terms related to property inspection rights
3. Sale Contingency: Condition that buyer must sell existing property
4. Tenant Rights: Existing tenant arrangements and obligations
1. Property Schedule: Detailed inventory of included fixtures and fittings
2. Title Documents: Copies of relevant title documents and searches
3. Property Disclosure Statement: Seller's disclosure of property condition and known issues
4. Environmental Reports: Any environmental assessments or reports
5. Survey Documents: Property surveys and related documentation
6. HOA Documents: Homeowners association rules and regulations if applicable
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