Residential Real Estate Purchase Agreement
This Residential Real Estate Purchase Agreement (the "Agreement") is made between [Buyer full name(s)] ("Buyer") and [Seller full name(s)] ("Seller") for the purchase and sale of the real property commonly known as [Property street address], [City], [Governing law (state)] [ZIP code], in the County of [County], legally described as [Legal description or parcel number], together with all improvements and fixtures on it (the "Property"). Buyer and Seller are each a "Party" and together the "Parties".
1. Purchase Price and Earnest Money
The purchase price for the Property is [Purchase price] (the "Purchase Price").
(a) Earnest money. Within three (3) business days after Acceptance, Buyer shall deliver earnest money of [Earnest money deposit] (the "Earnest Money") to [Escrow, title company or closing attorney] (the "Closing Agent"), to be held in trust and applied to the Purchase Price at closing. If Buyer fails to deliver the Earnest Money on time, Seller may terminate this Agreement by written notice at any time before it is delivered.
(b) Balance. The balance of the Purchase Price, together with Buyer’s closing costs, shall be delivered to the Closing Agent in good funds sufficient to close on or before the Closing Date.
"Acceptance" means the date the last Party signs this Agreement and delivers it to the other.
2. Financing
Buyer intends to obtain a loan of [Loan amount (or $0 for all cash)] of the following type: [Type of financing]. If the loan amount is zero, Buyer is purchasing with cash, the financing contingency in this Section does not apply, and Buyer shall deliver written verification of sufficient funds within three (3) business days after Acceptance.
Buyer shall apply for the loan within five (5) business days after Acceptance and pursue it diligently. Buyer has [Financing contingency (days)] days after Acceptance (the "Financing Period") to obtain a written loan commitment on terms acceptable to Buyer. If Buyer, having acted in good faith, cannot obtain a commitment and gives Seller written notice before the Financing Period ends, this Agreement terminates and the Earnest Money is returned to Buyer. If Buyer does not give that notice, the financing contingency is removed and Buyer’s Earnest Money is at risk under Section 10.
3. Contingencies
(a) Inspection. Buyer has [Inspection contingency (days)] days after Acceptance (the "Inspection Period") to inspect the Property in every respect Buyer wishes, including structure, roof, plumbing, electrical, heating and cooling, pests, sewer or septic, well water, radon, mold, environmental conditions, permits, zoning, insurability and boundaries, and to review all disclosures and documents delivered by Seller. Seller shall provide reasonable access at reasonable times with utilities on. Before the Inspection Period ends Buyer may accept the Property, deliver a written request for repairs or a credit, or terminate this Agreement by written notice and recover the Earnest Money. If Buyer requests repairs or a credit and the Parties do not sign a written agreement within three (3) days after the request, Buyer may terminate within two (2) further days; otherwise Buyer is deemed to have accepted the Property.
(b) Appraisal. [Appraisal contingency]. If the contingency applies and the Property appraises for less than the Purchase Price, Buyer may, within three (3) days after receiving the appraisal, terminate this Agreement and recover the Earnest Money, unless Seller agrees in writing to reduce the Purchase Price to the appraised value. This contingency expires at the end of the Financing Period.
(c) Title. Within the Inspection Period Buyer may review the title commitment and any documents referred to in it and object in writing to any exception. Seller shall have five (5) days to agree to cure the objection before closing; if Seller does not, Buyer may terminate and recover the Earnest Money or accept title subject to the exception.
(d) Sale of Buyer’s property. This Agreement is contingent on the sale of Buyer’s current residence: [Contingent on the sale of the buyer’s current home?]. If "Yes", the Parties shall attach an addendum stating the address, the deadline and Seller’s right to continue marketing the Property.
(e) Removal. Buyer removes a contingency by written notice or by letting its deadline pass. Once every contingency is removed, the Earnest Money is non-refundable except on Seller’s default or as this Agreement otherwise provides.
4. Seller Disclosures
Seller shall deliver to Buyer every disclosure required by the law of the State of [Governing law (state)] for the sale of residential property, including any statutory property condition disclosure statement, and, for any dwelling built before 1978, the federal Lead-Based Paint Disclosure and the pamphlet "Protect Your Family From Lead in Your Home" (42 U.S.C. §4852d). Timing of delivery: [Seller disclosures]. Buyer shall sign and return each disclosure within three (3) days after receiving it.
Seller further represents that Seller has disclosed in writing every material defect in the Property known to Seller that is not readily observable, and shall disclose promptly any such defect Seller learns of before closing. If a required disclosure is delivered after Acceptance, Buyer may terminate this Agreement by written notice within five (5) days after delivery and recover the Earnest Money.
5. Title and Survey
At closing Seller shall convey good and marketable fee simple title to the Property by general warranty deed, or by the form of deed customary in the County of [County] that carries the same warranties, free of all liens and encumbrances other than current taxes not yet due, recorded easements, covenants and restrictions that Buyer has approved, and zoning. Title shall be insured by an owner’s policy of title insurance in the amount of the Purchase Price. Buyer may obtain a survey at Buyer’s cost during the Inspection Period; any encroachment or boundary discrepancy it reveals is a title objection under Section 3(c).
6. Condition of the Property; Included and Excluded Items
The Property is sold in its present condition as of Acceptance, subject to Buyer’s inspection rights and Seller’s disclosure obligations. Seller shall maintain the Property, including landscaping and any pool or spa, in substantially the same condition until possession is delivered, shall remove all debris and personal property not included in the sale, and shall leave the Property clean.
All fixtures attached to the Property are included, including built-in appliances, lighting and plumbing fixtures, heating and cooling equipment, window screens and coverings, garage door openers and remotes, security and irrigation systems, mailbox, and trees and shrubs. Also included: [Items included in the sale]. Excluded from the sale: [Items excluded from the sale (or "None")]. Seller shall transfer included personal property free of liens by bill of sale at closing and has disclosed in writing any leased item, such as a leased solar system, propane tank or water softener.
7. Closing; Prorations; Closing Costs
Closing shall occur through the Closing Agent on [Closing date] (the "Closing Date"), or on the next business day if that day is not one. Real property taxes, homeowners’ association dues, rents and other periodic charges shall be prorated as of the Closing Date. Seller shall pay all taxes and assessments for periods before closing and any special assessment levied before Acceptance.
Transfer tax shall be paid by: [Transfer tax paid by]. The owner’s policy of title insurance shall be paid by: [Owner’s title policy paid by]. Seller shall credit Buyer at closing with [Seller credit toward Buyer’s closing costs (or $0)] toward Buyer’s closing costs, prepaid items and lender fees, to the extent Buyer’s lender permits. Each Party shall pay one half of the Closing Agent’s escrow or settlement fee. Buyer shall pay lender fees, the lender’s title policy, and recording fees for the deed and Buyer’s loan documents. Seller shall pay the cost of clearing title, any homeowners’ association transfer or document fees, and recording fees for any release of Seller’s liens. Any cost not allocated here follows the custom of the County of [County].
8. Possession and Final Walk-Through
Seller shall deliver possession of the Property, with all keys, remotes, codes and manuals, to Buyer: [Possession delivered]. Buyer may walk through the Property within three (3) days before closing to confirm that it is in the condition this Agreement requires and that any agreed repairs have been completed with receipts provided. The walk-through is not a contingency, but any failure it reveals must be cured by Seller before closing or credited to Buyer at closing in an amount the Parties agree in writing.
9. Risk of Loss
Risk of loss or damage to the Property remains with Seller until closing. If the Property is damaged before closing by fire, storm, flood or other casualty and the cost of repair exceeds two percent (2%) of the Purchase Price, Buyer may terminate this Agreement by written notice and recover the Earnest Money, or proceed to closing and receive an assignment of the insurance proceeds plus a credit for any deductible. Seller shall notify Buyer in writing within two (2) days after any damage.
10. Default; Liquidated Damages
If Buyer fails to complete the purchase because of Buyer’s default after every contingency has been removed, Seller shall retain the Earnest Money as liquidated damages and as Seller’s sole remedy, and this Agreement shall terminate. The Parties agree that Seller’s actual damages would be difficult to determine and that the Earnest Money is a reasonable estimate of them. If the law of the State of [Governing law (state)] caps liquidated damages for the sale of a dwelling the buyer intends to occupy, the amount retained shall not exceed that cap and any excess shall be returned to Buyer. Release of the Earnest Money requires written instructions signed by both Parties, a court order or an arbitration award. BUYER AND SELLER SHALL INITIAL THIS PARAGRAPH TO INDICATE THEIR AGREEMENT.
If Seller defaults, Buyer may terminate this Agreement and recover the Earnest Money together with Buyer’s reasonable out-of-pocket inspection, appraisal and loan costs, or may pursue specific performance of this Agreement.
11. Time; Notices
Time is of the essence of every provision of this Agreement. Deadlines are measured in calendar days unless stated as business days, and a deadline falling on a Saturday, Sunday or legal holiday in the State of [Governing law (state)] extends to the next business day. Notices shall be in writing and are effective on personal delivery, on delivery by email to the addresses in the execution record, or the next business day after being sent by overnight courier.
12. Assignment; Successors
Buyer [May the buyer assign this agreement?]. Any permitted assignee shall assume all of Buyer’s obligations in writing, and Buyer remains liable unless Seller releases Buyer in writing. Seller may not assign this Agreement. This Agreement binds and benefits the Parties and their heirs, successors and permitted assigns.
13. Brokers; Attorney Fees
Each Party represents that it has not dealt with any real estate broker or agent in connection with the Property except as disclosed in writing to the other Party before Acceptance, and shall indemnify the other against any commission claimed through it. Compensation to any broker is set out in a separate agreement and is not a condition of this Agreement. In any action or proceeding arising out of this Agreement, the prevailing Party shall be entitled to reasonable attorney fees and costs.
14. Governing Law; Entire Agreement; Severability
This Agreement is governed by the laws of the State of [Governing law (state)], where the Property is located. It, together with any attached addenda, is the entire agreement between the Parties about the Property and supersedes all prior negotiations, offers and agreements, oral or written. It may be amended only in a writing signed by both Parties. If any provision is held invalid or unenforceable, the remainder shall be given full force and effect.
15. Electronic Signatures; Counterparts; Expiration of Offer
This Agreement may be signed electronically and in counterparts, each of which is an original and all of which together are one instrument, and the electronic execution record, timestamps and document fingerprints kept by the signing platform are conclusive evidence of execution. This is an offer to purchase the Property on the terms above. Unless Seller signs and delivers Acceptance to Buyer by 5:00 p.m. local time on [Offer expires], this offer is revoked and any Earnest Money delivered shall be returned. Seller’s signature constitutes Acceptance.
Signatures
Buyer · Seller