Agreement of Purchase and Sale Example

When it comes to any transaction involving the purchase and sale of property, an agreement is a crucial document that outlines the terms and conditions agreed upon by both parties. An agreement of purchase and sale acts as a legal contract between the buyer and seller, setting out the details of the transaction, including the price, closing date, and other important terms.

To help you understand what an agreement of purchase and sale looks like, here`s an example:

Agreement of Purchase and Sale

THIS AGREEMENT made on [date] between [buyer`s name and address], hereinafter referred to as the « Buyer, » and [seller`s name and address], hereinafter referred to as the « Seller. »

1. Purchase and Sale

The Buyer agrees to purchase from the Seller, and the Seller agrees to sell to the Buyer, the property located at [address], including all fixtures and fittings (the « Property »).

2. Purchase Price

The purchase price for the Property shall be [amount in words and figures]. The Buyer shall pay the purchase price by [method of payment], as follows:

– [amount] on [date]

– [amount] on [date]

– [amount] on [date]

3. Closing Date

The closing date for the transaction shall be [date]. The Buyer agrees to take possession of the Property on the closing date.

4. Representations and Warranties

The Seller represents and warrants to the Buyer that:

– The Seller is the lawful owner of the Property and has the right to sell the Property.

– The Property is free from any liens, encumbrances, or other claims.

– There are no outstanding environmental or health hazards affecting the Property.

5. Conditions Precedent

This Agreement is subject to the following conditions precedent:

– [list of conditions]

6. Default

In the event of any default by either party, the non-defaulting party may terminate this Agreement and retain any payments made by the defaulting party as liquidated damages.

7. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [state/country].

8. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between them.

9. Counterparts

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

[Buyer] [Buyer`s signature] [Seller] [Seller`s signature]

As you can see from this example, an agreement of purchase and sale is a comprehensive document that covers all the critical elements of a property transaction. It is essential to carefully review the terms and conditions of an agreement of purchase and sale before signing it to ensure that both parties are protected and their interests are safeguarded.