Who Draws up a Purchase Agreement

When people decide to buy or sell a property, one of the crucial documents that come into play is the purchase agreement. A purchase agreement is a legally binding contract that outlines the terms and conditions of the sale transaction. Often, people wonder who draws up a purchase agreement, and in this article, we will discuss just that.

The purchase agreement is typically drafted by either a real estate attorney or a licensed real estate agent. In most states, real estate agents are permitted to draft purchase agreements as long as they do not provide legal advice. However, in some states, attorneys are required to draft purchase agreements.

When a purchase agreement is drawn up, it is tailored to the specific transaction. The agreement should include crucial details such as the purchase price, closing date, contingencies, and any other terms that are negotiated between the buyer and the seller. The purchase agreement should protect both parties` interests and ensure that the terms of the sale are clear and concise.

If a real estate agent draws up a purchase agreement, they will typically use a standardized template that is approved by the state`s real estate regulatory agency. The agent will then fill in the specific details of the transaction, making sure to include any clauses or contingencies that the buyer or seller has requested.

Real estate attorneys, on the other hand, will draft a purchase agreement from scratch. They will use their legal expertise to ensure that the agreement is legally binding and that all the necessary clauses and contingencies are included. A real estate attorney can also provide legal advice to the buyer or seller, making sure they understand the terms of the purchase agreement.

In some cases, both a real estate agent and an attorney may be involved in drafting the purchase agreement. For example, a real estate agent may draft the initial agreement, which is then reviewed by the buyer or seller`s attorney. The attorney may request changes to the agreement or suggest additional clauses to protect their client`s interests.

In conclusion, who draws up a purchase agreement? Real estate agents and attorneys can both be involved in the drafting process, depending on the state`s requirements and the parties` preferences. The most important thing is to ensure that the purchase agreement protects both the buyer and the seller`s interests and that all the necessary details are included.