Contract of Sale in United States

Practical Information

Note: Some of this information was last updated in 1982

Contract of Sale in Real Estate

A formal contract (in U.S. law) entered into between a seller (known as vendor (in U.S. law)) and a buyer (known as vendee (in U.S. law)) of real property (in U.S. law), setting forth in full all the terms of the agreement between them for the conveyance of title within a specified time. The contract of sale, often called Purchase and Sale Agreement, sets in motion the various investigations of title and encumbrances, arrangements for financing, and preparation of instruments to be signed upon closing title (in U.S. law). It is important that the contract of sale be prepared carefully to include all the terms of the agreement between buyer and seller and to state them clearly, for if any dispute should arise, the courts will not admit any oral testimony in variance of the written contract. In general, each locality has a contract form approved by the local real estate board. Forms usually include: 1. Date of contract

2. Name and residence of seller

3. Name of seller’s spouse if spouse must join in deed that is to be delivered

4. Name and residence of the buyer

5. Description of property to be conveyed (See land description (in U.S. law))

6. Purchase price, the exact amount being named

7. Amount to be paid when contract is signed (earnest money (in U.S. law))

8. Amount to be paid at closing, when deed (in U.S. law) is delivered

9. Whether existing mortgage, if any, is to be assumed or property purchased subject to it

10. How balance is paid, and when

11. Name of trustee in those states where a deed of trust is the security instrument

12. Unpaid taxes and assessments

13. Fire insurance data

14. Name of broker

15. Closing date

16. How long offer is open

17. Evidence of title; whether abstract of title, title insurance, or certificate of title

18. Possession date

19. Expiration date of offer

(Revised by Ann De Vries)

What is Contract Of Sale?

For a meaning of it, read Contract Of Sale in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Contract Of Sale.

The Contract of Sale Explained

References

See Also

• Property