When buying or selling a property, the real estate purchase agreement is one of the most important documents involved in the transaction. This legal document outlines the terms and conditions of the sale and purchase, including the price, financing, contingencies, and other crucial details. But who is responsible for preparing this critical document?
The short answer is that it depends on the state and the type of transaction. In some states, real estate agents are allowed to prepare purchase agreements, while in others, only lawyers are authorized to do so. Additionally, the type of transaction, such as a for sale by owner (FSBO) or a traditional sale through a real estate agent, may determine who prepares the agreement.
Real estate agents and brokers are licensed professionals who specialize in buying and selling properties. In many states, real estate agents are allowed to prepare and present purchase agreements to their clients. However, they cannot provide legal advice or draft complex legal documents. If you`re working with a real estate agent, they will likely use standard forms provided by their state`s Realtor association or another professional group.
In some cases, real estate agents may suggest that buyers or sellers hire a lawyer to review or draft the purchase agreement. This is especially true when dealing with complex transactions or unique circumstances, such as a property with multiple owners or a seller who is financing the sale.
When it comes to FSBO transactions, the responsibility for preparing the purchase agreement typically falls on the seller. However, if the buyer is working with a real estate agent, they may provide a standard form or suggest hiring a lawyer to review the agreement.
In any case, it`s crucial to have a purchase agreement reviewed by a lawyer before signing. A real estate attorney can ensure that the agreement is legally binding, protects your interests, and complies with state and federal laws. A lawyer can also help resolve any disputes or issues that may arise during the transaction.
In summary, the responsibility for preparing the real estate purchase agreement depends on the state and the type of transaction. Real estate agents may prepare the agreement in some states, while lawyers are required in others. FSBO sellers are typically responsible for drafting the agreement, but it`s important to have it reviewed by a lawyer. Ultimately, it`s essential to have a legal professional involved in the transaction to ensure that all parties are protected and the transaction is legally binding.
