Many times, buyers and sellers of a residential or commercial property make the mistake of focusing on the purchase price of the property without considering any other agreements that both parties need to agree on for the transaction to go smoothly.
Before any money exchanges hands, you have to make sure that both parties agree on not only the property's condition but other important factors, such as:
- The required property disclosure document
- Inspection period
- Need for an earnest money deposit
- Other contingencies required in the legal document
All these things are part of a real estate purchase agreement and can be enough to make your head spin if you do not know where to go for expert assistance.
Louisiana Real Estate Purchase Agreement
A real estate purchase agreement or sale agreement is a legal document that outlines all the important aspects of the sale of a residence or commercial property.
Some examples of the kind of information included in a Louisiana real estate purchase and sale agreement include:
- Closing date
- Purchase price
- Inspection period
- The disclosure documents
- Earnest money deposit
- Other important contingencies
Property Disclosure Document
According to the regulations of the Louisiana real estate commission, to protect yourself from potential lawsuits you need to make sure that any relevant property disclosure documents are included in the purchase and sale agreement, such as:
- The residential property disclosure document
- Lead-based paint property disclosure form
Potential buyers and sellers also need to consider the following:
- The responsible party for drafting the purchase agreement, i.e. a real estate agent or attorney (other states have different requirements)
- Condition of the property if the buyer is purchasing it as is or Caveat Emptor
- Important contingencies that are unique to the property's condition and the nature of the transaction
- Both buyer and seller agree and sign the document to make it legal
The following are the simple steps potential buyers and home sellers need to take when drafting a purchase agreement and completing the sale:
- Provide the details of each party, such as names, addresses, and phone numbers
- Include the property description, along with any relevant disclosures
- Set the cash purchase price and make a counter offer if necessary
- Buyer and seller agree on additional terms and contingencies
- Provide the effective date
- Discuss seller financing
- Agree on the earnest money deposit
- Set the survey and inspection period
- Confirm the title insurance and appraisal
- Close the purchase agreement
Before making any cash offer or counter offer on a real estate property, visit the website and see what is on offer.
What Does the Louisiana Real Estate Commission Do?
The Louisiana real estate commission is responsible for issuing licenses, regulating real estate purchase and sale agreements, and protecting consumers in all real estate transactions.
Why Is the Closing Date Important in a Residential or Commercial Property Sale Agreement?
Knowing the closing date shows you the date from which all agreements in the purchase agreement will start becoming legally binding.
What Is Title Insurance on a Purchase Agreement?
Title insurance is required by lenders or banks to protect them in case the property has some defect that the home sellers did not disclose in the sale agreement.
What Is the Purpose of an Escrow Agent?
An Escrow agent is responsible for handling all the payments between the buyer and seller.