A property agreement is a mutual commitment from the buyer and the seller of a piece of real property to move forward with the transaction subject to specified terms.
- Locking in a piece of real property for purchase from or sale to a particular person.
- Clarifying the terms by which a real estate transaction will move forward.
Real estate transactions are typically complex, requiring several contracts, waiting periods, and inspections before a home or office is ready for its new owners to move in. This property agreement is a type of purchase and sale agreement that commits the buyer and seller of a piece of real estate to the terms of the sale.
A purchase and sales agreement is a legal contract that, once executed, sets in motion some exchange of products, services, real estate, or other assets. This broad category of contracts can be used as a basis for nearly any transaction to take place. As a result, they can and should be crafted to provide an effective framework for a particular transaction based on the facts and circumstances of that specific exchange. This property agreement is a specific type of purchase and sale agreement that helps a real estate transaction to move forward.
The property agreement does not actually convey the property from one owner to the next. Rather, these agreements bind the buyer and seller to move forward with the transaction so long as specified terms and conditions are met. Neither party can back out of the deal unless the terms of the property agreement are breached or the parties mutually agree to walk away from the deal.
When moving forward with complex transactions, it is always good practice to take things one step at a time. With this property agreement, buyers and sellers can solidify their intent to move forward with a deal before any property changes hands.