This post was last updated on July 12th, 2021 at 08:23 pm
When we buy houses we usually use a Purchase Agreement. You can call it a Sales Agreement or Contract. It all refers to the same thing. A Purchase Agreement is a written agreement between a buyer and seller. It outlines all of the terms and conditions of the transaction. You don’t have to spend money on a fancy document. Any document outlining the important details will do.
Some people try and buy or sell a house on a handshake. This is a very bad idea. If everyone is being honest there is no reason to NOT have a written Agreement. Even if you trust the other person you will still need a written Agreement.
More importantly? Without a written agreement the Title Company won’t do anything. No Title Work means no Closing. That makes a Purchase Agreement very important!
Do You Have To Have A Purchase Agreement To Sell A House?
When you are buying or selling a house you should ALWAYS have a Purchase Agreement.
- It will allow a Title Company to start Title Work
- A Purchase Agreement clearly outlines everyone’s responsibilities
- Real Estate is considered something of substantial value
Title Company’s Need A Purchase Agreement
A Title Company will not start Title Work until a Purchase Agreement has been provided. It let’s the Title Company know that a buyer and seller are working to complete a transaction.
They know that if they start the labor-intensive process of Title Work they are probably going to get paid. It lists when the Closing can happen. This gives the Title Company assurance that they aren’t doing a lot of work for no reason.
The Title company also uses the Purchase Agreement to prepare closing documents. They look at the Purchase Agreement to know all of the details that have been agreed to. This is one of the most important reasons to never do a handshake transaction.
The Title Company needs a written Purchase Agreement to work from. It provides them with information about price. They can also use it to meet deadlines. The Purchase Agreement tells the Title Company who get’s what and who pay’s for what.
A Purchase Agreement Clearly Outlines Everyone’s Responsibilities
A Purchase Agreement outlines everyone’s responsibilities. It should state the buyer, seller, purchase price, earnest money and the address of the house. Closing dates and inspection periods are also common.
By having the details of the transaction outlined it’s less likely disputes will arise. There are people who simply will not honor an agreement. Luckily most people will.
By having a Purchase Agreement you have a document you can reference if any disagreements arises. Be sure and keep a copy for your files. You may need it later if there is a disagreement.
Real Estate Is Considered Something Of Substantial Value
There are a lot of things in life you don’t need a Purchase Agreement for. If you’re trying to buy or sell a house quickly a Purchase Agreement is literally required.
One of the central tenants of Contract Law is that a written agreement should be used on any transaction of substantial value. Written agreements are also required in any transaction that will take more than a year to complete.
Houses are considered to have substantial value. When you are selling a house you are dealing with a legal transaction. Everyone needs to be able to agree on inspection periods, who will pay for different costs and other issues. A written agreement also helps avoid disagreements later on.
The actual value of the house doesn’t matter. Sometimes houses aren’t worth a lot. There are houses that need a lot of repairs. Others are in bad areas. Even if you aren’t dealing with a large amount of money you are still dealing with a piece of Real Property.
Don’t take our word for it. Look what the legal experts have to say about having to have a written agreement when dealing with real estate.
Purchase Agreement’s Are Important When You Want To Sell A House Fast
It’s important to remember that a Purchase Agreement is a legally binding contract. It’s always wise to read it carefully before signing. Be sure that you understand exactly what you are signing. You want to double check that the purchase price, inspection dates and other information is correct.
Purchase Agreements do not have to be complicated. They can be a simple one or two page document. If you sell your house to 181-Close-Now you can rest easy knowing we will go over the Purchase Agreement with you.
Our Closing Options Analysts are trained to review the Purchase Agreement with out clients. We want to be sure everyone’s on the same page. This is one of the reasons out clients love us!
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If you’re ready to sell your house fast we would like to make you an offer. We make selling a home simple. Just fill out our Sell My House Fast Contact Form or fill out the form below and we will make you an all cash offer. We buy houses as-is with no repairs needed, your privacy is always protected and there is no obligation.
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