A recent decision by the Michigan Court of Appeals illustrates the importance of knowing what provisions are in your real estate purchase agreement before signing it.
As many of you already know, the purchase agreement is the contract between the buyer and the seller that sets forth the terms of the real estate transaction. At a minimum, a purchase agreement should accomplish the following:
- Dictate how the transaction will take place;
- Comply with state-specific laws; and
- Provide sufficient protections and assurances for the contracting parties.
Each of the above mentioned items should also be supplemented by a number of real estate related concerns that are specific to the transaction. A few of the most common include evidence of marketable title, inspection rights, terms of payment, and title commitment. The contracting parties may need to negotiate on several points in order to reach a final agreement that is tailored to meet each party’s particular needs.
In order to be enforceable, the purchase agreement must be in writing and signed by the buyer and seller. But before you sign it, make sure you know what you are agreeing to.
Please contact Attorney William L. Carey at Carey & Jaskowski, PLLC for all of your Northern Michigan real estate needs.