Answer: When buying or selling a home, you may wonder “does a real estate purchase agreement need to be notarized”. The answer is that real estate purchase agreements do not need to be notarized or witnessed in order to be legally binding. The reason this is not required is primarily because these contracts do not need to be filed with local country records.
Though notarization is not required, it may still be a good idea to have a notary present in order to verify the identities of all signers.
What is a Real Estate Purchase Agreement?
A real estate purchase agreement is a contract between a buyer and a seller that details the terms of a home sale transaction. It is a legally binding document that, upon signing, requires both parties to abide by its terms as the transaction is carried out.
Purchase agreements are signed once the buyer has agreed to the conditions and financial details that have been proposed by the seller. Any negotiations or changes regarding these conditions must be addressed prior to the document signing. Purchase agreements essentially finalize the terms of the real estate transaction.
Who needs a Real Estate Purchase Agreement?
If you are buying or selling a house, you will need a valid real estate purchase agreement.
What is included in a Real Estate Purchase Agreement?
Real estate purchase transactions lay out in detail the terms of the transaction that is to take place. Some of the details that are required in a purchase agreement are:
- Buyer and seller information: The Names and contact info of all parties involved in the sale.
- Title insurance: Specifying who will be responsible for purchasing title insurance in order to protect against any potential discoverable defects in the property.
- Details about the property for sale: The address and a description of the property, including any pertinent details.
- Final purchase price: The final agreed-upon selling price for the property, including any and all costs associated with the sale.
- Representations and warranties: Statements of facts about the properties condition and composition, as provided by the seller.
- Financing details: A detailed outline of how the buyer will be paying for the property.
- List of included fixtures and appliances: Any household appliances or mounted fixtures that will be included with the sale.
- Property taxes: Any property taxes that will be imposed on the buyer once the purchase is complete.
- Earnest money: Terms of any earnest money security deposits that must be made by the buyer to confirm to the seller that you are serious about purchasing the property.
- Termination options: Details of any options and limitations the buyer has to back out of the sale.
- Contingencies: Any conditions that must be met before a sale of the property can go through.
- Closing date: A specification of the exact date the official title transfer for the property will occur.
- Signatures: Signatures of the buyer, seller, and any other involved parties.
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