One of the most important things about the buying process that a potential buyer or seller needs to understand fully before signing any real estate contract is the purchase agreement.
This type of document is commonly used by members of the Indiana Association of Realtors and homeowners association when conducting sales and purchases of real estate properties throughout the state.
Indiana Real Estate Purchase Agreement
A purchase and sale agreement is a very important and legally binding document that outlines the terms and conditions of the real estate contract that the buyer and the seller have both discussed and accepted.
The Indiana purchase agreement contains key information about the transaction, such as closing date, purchase price, specific contingencies, and any other information that both parties wish to include as part of the deal.
The following are some of the key features of an Indiana residential purchase agreement:
- The purchase and sale agreement may be prepared by real estate agents from the Indiana Association of Realtors or a real estate attorney
- An Earnest Money Deposit of between 1% and 3% is usually paid by the buyer to show their level of intent
- Various contingencies may be included as part of the deal that both parties need to meet
- An Indiana residential purchase and sale agreement usually operates under Caveat Emptor, which means the buyer must beware that they are buying the property as is
Laws and Disclosures
By law, the seller needs to disclose certain key information about the property to the buyer or homeowners association of the area that may affect the terms, price, or contingencies of the purchase agreement.
The following disclosures are required in an Indiana purchase agreement:
After several stages of negotiating, if a seller rejects the counteroffer made by the buyer, the purchase and sale agreement needs to be terminated.
If the reason for the termination of the contract is not outlined in any clauses in the purchase agreement, the buyer and seller may face penalties.
Reasons for terminating a purchase agreement can include:
- Unable to obtain financing
- Unable to find a replacement home
- Rules of the homeowners association
- Failed inspection and many more reasons
If you are thinking of buying or selling a home in Indiana, you will need all the help you can get concerning the purchase agreement. Doorloop is the one-stop shop for all the resources and forms that you will need.
What Is an Escrow Agent?
This is a third party entrusted with holding the property in trust until the deal is completed.
What Is Title Insurance?
When applying for a mortgage, most banks will require title insurance to cover any potential losses.
How Can Prospective Buyers Find the Legal Description of a Real Estate Property?
Usually, the County Recorder’s Office is the best place to find all the information about the property that is being sold.
What Does “Effective Date” Mean?
The effective date is the date on which all the agreements, clauses, and contingencies outlined in the purchase agreement become binding.