When buying a house, commercial property or other real estate, a purchase and sale agreement will be used. So what is this agreement?
It is a written contract that, once signed by both the buyer and the seller, creates an obligation for seller to sell the property and the buyer to purchase the property at an agreed upon price subject to any terms and conditions stated therein.
Purchase and sale agreements can differ greatly depending on the property being sold. For example, a description of the property to be purchased can be as simple as identifying the address, however in certain circumstances it is beneficial to provide a full legal description. It is important for a buyer to inspect the property in order to discover any problems or defects. Any inspection contingencies must be included in the purchase and sale agreement. Many purchase and sale agreements will also contain additional terms and phrases such as:
In New Hampshire, certain things must be disclosed to the buyer, by the seller, regarding the home or property at the time of the purchase and sale agreement.
There are additional disclosure requirements if the property being sold is a condominium. The seller must inform the buyer that they have the right to obtain information from the condominium unit owners’ association including receiving copies of the condominium declaration, by-laws, any formal rules of the association, a statement of the amount of monthly and annual fees, and any special assessments made within the last three (3) years. There are also special disclosure requirements if the property being sold is waterfront property.
Disclosures may be attached as an addendum to the purchase and sale agreement or incorporated into a purchase and sale agreement.
After the purchase and sale agreement signed by the buyer and seller, and all terms and conditions have been satisfied a closing will be scheduled by the closing attorney or title company. If the buyer is financing the purchase of the property, loan documents as well the deed and a settlement statement will be prepared. Once the deed is signed and the monies given to the seller, then it is considered that all the the terms of the purchase and sales agreement have been satisfied and it is generally no longer in effect. The deed is then recorded at the registry of deeds so that the new ownership is then a matter of public record.
Whether you are buying or selling real estate, the experienced attorneys Smith-Weiss Shepard Kanakis & Spony, P.C. can assist you in preparing and/or negotiating a purchase and agreement and all other necessary documents to ensure your investment is protected and you obtain title to your new property as effortlessly as possible.