Need of Real Estate Purchase Agreement


Sunwest Escrow is here to help you through the home buying and selling process. We’re available to answer all your questions regarding real estate contracts and owner financing. We recommend that all prospective buyers and sellers first understand the details of a real estate purchase agreement and why it’s perhaps the most important contract in the transaction. 

The Need of a Real Estate Purchase Agreement 
A real estate purchase agreement, also referred to as a real estate contract, is a key part of your real estate transaction. This is a written contract between buyer and seller confirming that the property will be sold for an agreed-upon amount. To be legally classified as a real estate purchase agreement, this contract must meet four specific requirements:
  1. It needs to follow all legalities regarding the purpose of the agreement.
  2. It must be in writing.
  3. It must list proof of offer and proof of acceptance.
  4. It must identify which articles of value will be exchanged for the property.
What to Verify on a Real Estate Purchase Agreement
There are other items that should be listed to ensure that the buyer and seller both understand and agree to the vital details of the contract. We insist that your real estate purchase agreement should contain the following seven items:
  1. Earnest Money Amount: Deposit that shows the buyer’s commitment to the property and limits the risk of loss on both sides.
  2. Contingency: Allows each party to retain their investment should an important aspect of the contract not be met.
  3. Settlement Date: Agreed upon time that the money and deed will exchange hands.
  4. Possession Date:  Signifies when the buyer has access to the property.
  5. Escrow: A good faith investment that protects the seller.
  6. Delivery: Agreed upon method of communication and document delivery.
  7. Home Warranty: Policy that covers damages to the home after purchase
Real Estate Purchase Agreement Albuquerque

When the time comes for you to buy or sell a property, trust Sunwest Escrow to create the detailed real estate purchase agreement in Albuquerque that buyers and sellers can invest in.



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