The other name for a Purchase Sale Contract is Earnest Money Contract. It starts with the parties, “sellers” as they are identified on the deed, and “buyers” as they want to take title. Below are the important components of each contract:
- Parties
- Consideration,
- The price
- Survey and Metes and Bounds Description
- Financing Terms, the loan
- Earnest Money, the deposit
- Property Inspection
- Environmental Assessments, Phase I and II if necessary
- Title Exceptions, Deed Restrictions
- Compliance with Regulations, No Violations
- Assessments, Property Taxes
- Easements
- Curb Cuts existing and potential
- Estoppels, Transfer of Lease and Acceptance by Tenants
- Review of Leases
- Review of Income Expense Statements
- Insurance Coverage
- Maintenance Contracts, The Third Party Service Providers
The Purchase Sales Contract can provide a guideline and road map for the buyers as they conduct the due diligence. In order to keep all of the required deadlines organized, we suggest you make a list of all deadlines including those for the survey, loan contingency, inspection, Phase I and or II, Title objections, estoppels, lease reviews, income expense statement reviews, and third party service contracts. This is certainly not a complete list but it’ll help you get through a long list of things you need to accomplish during a property purchase.
