When it comes to buying or selling a property, one of the most crucial documents involved is the real estate binder agreement. This legal document outlines the terms and conditions of the property transaction, clarifies the responsibilities of both the buyer and the seller, and serves as a preliminary contract before the actual closing.
If you`re in the real estate industry, it`s essential to have a comprehensive and well-written binder agreement that protects your interests and ensures a smooth transaction process. To help you get started, here is a sample of a real estate binder agreement.
[Insert company name and logo here]
Real Estate Binder Agreement
This Real Estate Binder Agreement (“Agreement”) is made between [Insert Buyer`s Name], hereafter referred to as “Buyer,” and [Insert Seller`s Name], hereafter referred to as “Seller,” regarding the purchase of the property located at [Insert Property Address], hereafter referred to as “Property.”
Terms and Conditions
1. Purchase Price
The purchase price for the Property shall be [Insert Purchase Price] payable in cash at the closing of the transaction.
2. Earnest Money
Upon the execution of this Agreement, Buyer shall deposit [Insert Amount] as earnest money with the escrow agent. The earnest money shall be applied towards the purchase price at closing or refunded to Buyer in the event the transaction does not close due to the fault of Seller.
3. Property Condition
The Property shall be sold in “as-is” condition, and no warranties or representations of any kind are made by Seller regarding the condition or quality of the Property.
Closing of the transaction shall take place no later than [Insert Closing Date] at [Insert Closing Time] at a mutually agreed location. The closing shall be conducted by [Insert Name of Escrow Agent], and all necessary documents shall be executed by both parties at the closing.
In the event of a default by either party, the non-defaulting party shall have all remedies available under the law, including the right to terminate this Agreement and retain the earnest money as damages.
6. Governing Law
This Agreement shall be governed and construed in accordance with the laws of the state where the Property is located.
7. Entire Agreement
This Agreement represents the entire understanding between Buyer and Seller and supersedes all prior negotiations, understandings, or agreements between them. This Agreement may be amended in writing only by the parties.
This Agreement may be executed in counterparts and delivered by facsimile or email, which signatures shall be deemed original.
By signing below, Buyer and Seller acknowledge that they have read and understand this Agreement and agree to be bound by its terms and conditions.
Buyer`s Signature: ____________________________ Date: ____________
Seller`s Signature: ____________________________ Date: ____________
In conclusion, a well-drafted real estate binder agreement is critical to ensure a successful property transaction. This sample agreement can serve as a starting point for creating your own binder agreement that meets the specific needs of your property transaction. Always seek legal advice to ensure you are drafting an agreement that is accurate, binding, and compliant with local and state laws.