An Agreement of Sale for real estate is a contract that defines the terms and conditions of the sale of real estate by a seller to a buyer. It is an important document for a sales transaction as an agreement to sell real estate is not binding in Pennsylvania unless it is reduced to a written contract that is signed by both parties. A properly drafted agreement of sale will contain all of the terms of sale and help to ensure the sale goes through without any issues. Before signing any agreement, be sure to thoroughly review the agreement and understand all of the terms of the agreement. All agreements of sale for real estate, at a minimum, should include the purchase price, if and how any deposit will be held in escrow, a section dealing with the terms for financing the purchase price, the time and date for closing, any necessary inspection contingencies and the parties obligations relative to the outcome of the inspections, representations and warranties of the seller regarding the condition of the property, a section regarding insuring title to the property, and a section detailing how closing costs will be shared by the buyer and seller. Upon both the buyer and seller signing an agreement of sale, the buyer must immediately provide a copy of the signed agreement to their title company and their bank. In addition, the buyer must immediately order any property inspections they intend to be performed. All agreements provide a limited time frame for a buyer to perform these tasks. Failure to perform these tasks within the time frame outlined in the agreement will lead to undesirable outcomes for the buyer.
Transfer of the title to the property will occur at closing. Closing will generally be handled by the title company that buyer selects to insure title to the property. Once the title company has performed a search of the title to the real estate and is satisfied that the title is insurable, the parties can proceed to closing. At closing, the buyer will need to have their financing in order, the title company will prepare the closing sheet which details the responsibility for closing costs between buyer and seller, and the the title company will make all distribution of proceeds from closing. Finally, the seller will sign the deed and transfer title to the buyer.
You want to make sure that all necessary documentation is correctly drafted. To ensure that this is the case, it is a smart idea to have a lawyer draft the agreement and other required documents. Even if you wish to draft the agreement yourself, you still want a lawyer to review the document for you. A lawyer will make sure that everything is prepared properly and includes all the necessary terms.
At Sher & Associates we have the ability to draft or review your Agreement of Sale document and related documents. Contact us today to schedule your appointment.
Disclaimer: This is a simple overview of the subject matter. Please consult an attorney for legal advice on Agreement of Sale.
Sher & Associates, P.C. is a law firm located in Kutztown PA that can assist you in any of the following areas: business law, real estate law, and estate planning. We assist many individuals, businesses and families in and around Fleetwood PA, Blandon PA, Topton PA, Hamburg PA and Oley PA.