Contingency ClausesĪ contingency clause defines or outlines certain conditions or actions that a real estate purchase agreement must meet to become a legally binding document.Ĭommon contingency clause examples include: In most cases, an EMD is refundable or has a cancellation fee.
Once payment is made and the funds have been received, the Seller’s agent should provide the Buyer with an EMD receipt. The earnest money deposit is usually due within 3 days upon the agreement of the purchase agreement.Įarnest money deposits are usually paid via cashier’s checks or wire transfers and can be paid in phases or all at once. Generally, the EMD is between 1-3% of the sales price but it depends on a variety of factors (i.e., the current market, the Seller’s requirements, any limitation the state imposes, etc.). It is important to keep in mind that the following states do not allow dual agency:Įarnest money deposits (EMD) is a good faith deposit, which the Buyer pays to the Seller to show their intent or commitment to purchasing the Seller’s property. If the sale of the property is by the owner, the Buyer’s agent could prepare the paperwork as a transactional agent or “dual agency”. If a Buyer or Seller wants a real estate purchase agreement uniquely created for them, they must seek the assistance of a real estate attorney who is the only one legally authorized to create a purchase agreement from scratch. Real estate agents (typically the buyer’s agent) and real estate attorneys may prepare a purchase agreement.
Below we will take a closer look into the details and components of a residential purchase agreement. delaware florida georgia hawaii idaho illinois indiana iowa kansas kentucky louisiana maine maryland massachusetts michigan minnesota mississippi missouri montana nebraska nevada new hampshire new jersey new mexico new york north carolina north dakota ohio oklahoma oregon pennsylvania rhode island south carolina south dakota tennessee texas utah vermont virginia washington west virginia wisconsin wyoming Key Things to Know About Purchase AgreementsĪ purchase agreement should include all the terms of the sale. Alabama alaska arizona arkansas california colorado connecticut D.C.
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