An agreement of purchase and sale is a legal document that is used to outline the terms and conditions of a real estate transaction between a buyer and a seller. Whether you are buying or selling a property, it is crucial to have an agreement of purchase and sale in place to protect your interests and ensure a smooth transaction.

To help you understand what an agreement of purchase and sale entails, we have provided a sample below:

Agreement of Purchase and Sale

This agreement made on [date] between [buyer’s name] (hereinafter referred to as “buyer”) and [seller’s name] (hereinafter referred to as “seller”).

Property Information:

The Property being sold by the seller to the buyer is located at [address], which is described as [property description].

Purchase Price:

The purchase price for the Property is [amount], which will be paid by the buyer to the seller subject to the terms of this Agreement.

Deposit:

The buyer agrees to pay a deposit of [amount] to the seller upon the execution of this Agreement. The deposit will be held in trust by [trustee’s name] until the completion of the transaction.

Conditions Precedent:

This Agreement is subject to the following conditions:

1. The buyer obtaining financing for the purchase of the Property on terms satisfactory to the buyer by [date].

2. The buyer being satisfied with the results of a home inspection by [date].

3. The buyer being satisfied with the results of a title search by [date].

4. Any other conditions as mutually agreed upon by the buyer and the seller.

Closing:

The closing date for the transaction will be on [date]. On the closing date, the buyer will deliver the remaining balance of the purchase price to the seller, and the seller will transfer the title and possession of the Property to the buyer.

Representations and Warranties:

The seller represents and warrants that:

1. The seller has the legal right and authority to sell the Property.

2. The Property is free from any liens, encumbrances, or other claims.

3. The Property is in good condition and repair, subject to normal wear and tear.

The buyer acknowledges that they have conducted their own due diligence and accept the Property in its current condition.

Governing Law:

This Agreement will be governed by and interpreted in accordance with the laws of the province/state of [province/state], and any disputes will be resolved through arbitration in [city], [province/state].

Conclusion:

An agreement of purchase and sale is a critical document in any real estate transaction. It defines the terms of the purchase, outlines the responsibilities of both the buyer and seller, and ensures that both parties are on the same page. By using this sample agreement as a guide, you can create a legally binding document that protects your interests and ensures a smooth transaction. Always ensure that you consult a lawyer before entering into any agreement of purchase and sale.