If it's your first time purchasing or selling real estate property, you should know that selling and buying any property involves several steps. If you are not properly guided, the process of filling a Michigan real estate purchase agreement may become tedious.
To ensure that a contract signed by you is binding on the other party, you must have it in written form. It also serves as evidence for any future complications.
When you are about to enter into a contract, always remember to carefully read and understand all the terms and conditions. Failure of performances and acts given in the agreement will attract judicial action.
What's a Michigan Real Estate Purchase Agreement?
A real estate purchase agreement is a legally binding document that lays down the essential terms and conditions of the contract entered by two parties. The consideration in such an agreement is most commonly the sale or purchase of real estate property.
The person who wants to sell a property owned by him is called the "seller", whereas the person who wants to buy such a property is called a "buyer". The purchase agreement for Michigan lays down all the rights, duties, and obligations of the parties involved.
You can change the terms before the closing date on the consensus of both the parties but not afterwards. Therefore, you need to gather sufficient knowledge about the Michigan real estate purchase agreement provisions to avoid any blunders.
What Is Included in a Michigan Purchase Agreement?
The real estate purchase agreement in Michigan includes several crucial things. Here are the most notable points you need to know beforehand:
- Prices
The transaction amounts are to be paid at various stages of the agreement. The purchase offer amount, earnest money, and final transaction for closing the deal come under the price section.
- Descriptions and details
This section refers to the details about buyer and seller, their full names and address, and the property description in consideration.
- Additional fees
The amount paid to the broker as fees or any other expenses to be paid by either party is included in this section.
- Terms and conditions
Everything is agreed upon by the parties. This provision encompasses all the terms, conditions, requirements, and contingencies essential to determine the rights and obligations of each party.
How to Fill a Real Estate Purchase Agreement in Michigan?
Once you are familiar with the terms and provisions are given in the Michigan purchase agreement, the rest of the job becomes easy. All you have to do is download the real estate purchase agreement for Michigan and follow the steps below to fill the form.
- Enter the details of the parties
The first step is to mention the full names of both parties correctly.
- Write the property details.
All the details relating to the property in consideration are to be mentioned in the purchase agreement.
- Enquire the terms and conditions
Check out the terms and conditions given in the agreement. Clear doubt, if any, at this stage itself.
- Look if there are any contingencies and custom terms.
Are there any contingencies to be fulfilled by you or the other party for the contract to become enforceable? What about the seller's warranty? All these terms and similar facts on the purchase agreement will be mentioned here.
- Enter the price and earnest money
Write down the final price fixed by both the parties on the Michigan purchase agreement.
- Mention the closing costs
Suppose any commission or fee to be paid to the agent. Any loan is outstanding on the property, writing down all these amounts in the purchase agreement form before finalizing.
- Finalize
This part marks the deal’s closing, indicating that both parties agree to the clauses mentioned in the purchase agreement. Make sure only the individuals authorized by the parties or legally competent are signing the contract.
Conclusion
You must comply with all the laws regarding the sale and purchase of property in Michigan to have a legal contract made successfully. Many people go for external assistance for drafting and reviewing the form. However, CocoDoc has made your work easy. All you need to do is download a real estate purchase agreement in Michigan and follow the steps given above to fill it without any hassle.
