Agreement of Sale

When a property is in the process of being sold, one of the most important documents necessary is the Agreement of Sale papers. This is the document in which both the buyer and vendor agree on the terms of the sale agreement. In some places, a property or land sale is only valid if the sale agreement is in writing. The terms covered in the agreement of sale include the price, the exact timing of the transaction, and the liabilities and assets covered in the transaction. The agreement of sale specifies the obligations and responsibilities taken on by both the vendor and purchaser. The terms should be clearly written and preferably overseen by a legal representative.

Under the sale agreement, the purchaser may undertake the obligation to repay the outstanding mortgage balance while the vendor may agree to provide furnishings or insurance coverage for a certain period of time. There are many factors to be taken into consideration such as deposit, settlement, zoning and planning permission issues as well as the responsibilities to pay taxes on the real estate, the transfer and also the utilities. Certain repairs may need to be carried out before the sale agreement is complete and these are generally agreed upon beforehand. The Agreement of Sale should cover all areas of the sale and transfer of ownership.

More terms explained