View random article

What Is a Purchase Agreement?

A purchase agreement is a legal document or contract required when buying a piece of real estate property or any goods and services for that matter. This agreement is essential to both the consumer and the seller since this gives a better understanding of the transaction and agreement between them. Those terms and concepts found in the purchase agreement explain the different conditions and or restrictions that the people involved agree to perform, consider and process.

One major use of the purchase agreement is in the real estate industry. This is normally used by both the buyer and the seller to form a contract or agreement between them. The purchase agreement usually states the conditions, limitations and the requirements that the buyer should abide with so that the seller could push through with the sale of a certain property. The same contract should also be used by the seller to be able to clearly explain to the interested buyer the condition and existing defects, if any, of his property. It is in this document where sellers should state all the details of their property from its physical condition and address to its market value, selling price and repairs done. The success and completion of the transaction would only happen after all the conditions stated in the purchased agreement are met by both parties.

Another sector that makes use of a purchase agreement is the telecommunication. In this industry, consumers are offered different rates for communication services which could entice them to enter into a contract. Overall, this legal document is vital in most transactions that involve buying and selling.

Featured in Finance