A real estate purchase is not only a big step, but it's also a transaction that has a defined process meant to be followed by prospective buyers and sellers. The buyer and seller agree on the terms of the contract as the basis of the agreement, then the deal is closed.
This is an oversimplification of how the purchase and sale of residential real estate work in Michigan, but it's essentially how things work.
The idea of the sale agreement document is to provide the terms that both parties will abide by. This will consist of elements such as the financing terms, names and contact information of the parties, and conditions, the purchase price, and more.
With that said, the information below is meant to outline some of the critical things you need to know without having to paw through the documentation provided by the Michigan Association of Realtors.
What To Include
First, it's a good idea to talk briefly about the required disclosures that need to be made for the real estate purchase agreement to be valid. Typically, the intention is to cover elements such as the property's current condition and any provisions that must be made.
In Michigan, there is what is known as the Seller's Property Disclosure Statement. The buyer is meant to have the property professionally inspected, however, this disclosure will illustrate full accounting of the property's current condition.
Additionally, if the property was built prior to 1978, a disclosure, known as a Lead-Based Paint Disclosure must be made that details any lead paint content associated with the premises.
Without these disclosures made to prospective buyers, the contract for the residential property cannot be viewed as a legally binding one.
Beyond these disclosures, the following details are recommended for capture:
- Names, addresses, and contact information of the involved
- Description of the property
- Purchase price
- Conditions associated with the closure of the agreement
- Closing date
- Signatures of the parties involved.
The idea of the Michigan real estate purchase agreement is to detail whatever terms and conditions apply to the buyer and seller of a property in the state.
Buyers tend to submit offers with the form, after which sellers will review it to accept, counteroffer, or decline. It's imperative that the elements highlighted above for inclusion not be left out.
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Is Filling out a Michigan Real Estate Purchase Agreement Difficult?
Not necessarily. The best agreements are very straightforward and should only aim to capture the necessary details
When Does a Residential Property Sale Agreement Take Effect?
The contract takes effect on the day the seller and buyer agreed to, provided the conditions of closing are met and both signatures are presented.
Can Prospective Buyers Opt out of a Purchase Agreement Contract?
At any point before the seller signs the agreement, the offer may be rescinded.
What Are Some Key Points to Remember When Drafting a Purchase Agreement?
Remember to capture the names of the parties, the price of the property, financing details, the closing date, and any conditions.