An Oregon real estate purchase agreement is required in all transactions to buy or sell a residential property. Do you want to learn more about this document and what state laws say about it? Here's all the information you need to know!
Oregon Real Estate Purchase Agreement
It's a contract that binds a home seller to a prospective buyer, who often submits a written offer to purchase a residential property. It includes different details, such as both the sellers' and buyers' responsibilities over the transaction.
Overall, a real estate purchase agreement (purchase and sale agreement) describes the terms and responsibilities that both parties agree to, including the following:
- A description of the property's condition
- Proposed purchase price
- Closing date
- Possession dates
- Buyers' and sellers' information
- Pricing and financing
- Property insurance
- Conflict resolution contingencies
Since this contract documents all the key details related to a real estate purchase transaction, it also contains all the provisions that often guarantee the property's condition and both parties' adherence to the agreed-upon terms. Therefore, it's essential for both a seller and a potential buyer.
In many states, sellers are required to disclose certain information related to the condition of the building or unit they plan to sell. Otherwise, they could be accused of fraud. Under Oregon law, these are the required disclosures they must add to make the purchase and sale agreement legally binding:
Lead-Based Paint Disclosure
If the properties were built in 1978 or earlier, sellers must add this disclosure, warning that there may be lead-based paint there. The lead-based paint disclosure should include information on potential hazards and how to avoid exposure.
Seller's Property Disclosure Statement
Oregon laws also state that sellers must reveal all details about their properties to those who submit a written offer to buy them. This five-page disclosure must include all defects that may affect the purchase. Buyers also have the right to perform an inspection to determine the unit's condition.
If you want to draft an Oregon residential purchase agreement to sell a property or learn how to make a legal real estate transaction, Doorloop has all the resources you need!
On our website, you can find different Oregon real estate forms available for free and valuable information you can leverage if you plan to rent, sell, or buy a property, including the following:
How Can a Buyer Exit an Oregon Residential Purchase Contract?
Oregon law says that a potential buyer has five business days after receiving the Seller's Property Disclosure Statement to back out of the purchase for any reason, as they have the right of revocation.
Should This Document Have the Purchase Price?
Yes, of course! In Oregon and most states, the purchase and sale agreement is considered a written offer the potential buyer makes to the seller to buy a property. Therefore, it should always include the purchase price.
Can a Seller Cancel This Purchase Agreement in Oregon?
Yes, they can. Under Oregon law, a seller can exit a real estate contract if the prospective buyer fails to meet contingencies, which may include the following:
- Property insurance
- Home leaves
Moreover, an estate sale or other unique conditions could allow a seller to cancel this agreement.
What Is the Effective Date of a Real Estate Contract in Oregon?
Oregon law also states that the effective date of a real estate purchase agreement is when both parties agree on the conditions for the transaction and execute the contract. At that time, all obligations outlined in this form will be binding and enforceable.