What is a Purchase Agreement?
A Purchase Agreement is a legal and financial document used to finalize the terms and conditions of the sale of a particular item or property, and represents the culmination of negotiations between the buyer and the seller.
Generally speaking, Purchase Agreements are used for transactions concerning items and property with high prices, such as $500. However, the agreements can still be used for smaller transactions, and in a wide variety of industries (most commonly real estate).
A Purchase Agreement also serves as a document that records the transaction, and must be signed by both buyer and seller before ownership of the property is transferred and the payment is finalized.
Who needs to use a Purchase Agreement?
When a particular item or property is put out for sale, and a buyer indicates that they wish to purchase that item or property, a Purchase Agreement Template is generally used by both buyer and seller to not only negotiate the price of the item or property (whenever possible) but to set any terms and conditions surrounding the sale, method of payment, and any other conditions that may need to be set.
How to fill out a Purchase Agreement?
The Purchase Agreement Form is a very simple form to fill out. Make sure to download the form in PDF before printing it to ensure that all information entered and the format of the form will remain intact even after being printed or otherwise submitted to the relevant person or entity.
It may be beneficial to have any relevant documents to the transaction to ensure that all information entered on this form is correct and updated. Make sure that all parties involved agree to the terms outlined below.
Enter the date that this agreement was entered into.
Enter the name of the seller and the company or organization they belong to, or their location of operation.
Enter the name of the buyer and the company or organization they belong to, or their location of operation.
The two paragraphs in this section declare that the following statements are true:
- The seller owns certain items of property and wishes to sell them under the terms and conditions set forth in this agreement.
- The buyer wishes to purchase the seller’s property under the terms and conditions set forth in this agreement.
By signing this form, both parties will agree to be legally bound by the terms and conditions of this agreement.
Sale of Property
Enter a description of the property or item(s) being sold. Make sure that this description is consistent with the descriptions on any documents attached to this form.
Enter the total sum of the purchase price of the property or item(s), including any applicable sales tax.
Enter the following amounts corresponding to the payment of the above-indicated purchase price by the buyer to the seller.
- (a) The amount previously paid by the buyer.
- (b) The amount paid upon the execution of this agreement.
- (c) The amount paid upon acceptance of the property.
This section declares that the buyer will be responsible for the filing of all required sales and use tax returns in connection with the transfer of the property. The buyer will also be the one to pay any and all required sales and use taxes as well as any other transfer costs and expenses that may arise as a result of the transfer of the property.
The seller, however, will be the one to shoulder any personal property taxes associated with ownership of the property and accrued for the period ending on the effective date of the agreement. Any personal property taxes that accrue afterward will be paid by the buyer.
Enter the day, month, and year that the buyer will become entitled to take possession of the property. If the delivery of the property is to be made after the effective date of this agreement, it is the seller’s responsibility to ensure that the property is delivered in the same condition as it was when the buyer last inspected it.
This section declares that the seller represents and warrants that they have good and marketable title to the property, as well as the full authority to the property. The seller also certifies that the property is sold free and clear of all liens, indebtedness, and liabilities. The seller makes no other representations or warranties concerning the property, which is being sold and assigned as is and without any warranties of merchantability or fitness for any particular purpose.
The seller expressly disclaims any representations or warranties as to the value, condition, or functionality of the property or its suitability for any particular purpose.
The buyer may request a Bill of Sale document from the seller for the property, but also agrees to have no recourse against the seller for the property.
Enter the state under whose laws this agreement will be governed by.
This section declares that the agreement will be binding upon and work to the benefit of both parties and their respective heirs, successors, and assigns. The provisions of this agreement are severable. If at any point in the future, a provision on this agreement becomes invalid or otherwise unenforceable, the validity and enforceability of all other provisions will be unaffected.
This agreement will constitute the entire agreement between both parties, and will supersede any and all prior oral or written agreements or understandings between the parties concerning the subject of this agreement. The agreement itself may be executed in one or more counterparts, each of which will be considered to be original and constituting one and the same document.
Have both the buyer and the seller sign the form in the space provided.
Tips when filling out a Purchase Agreement
The Purchase Agreement PDF is a very simple form to fill out. However, as it is a legal agreement as well as a financial document, it is important to make sure that all information entered in the form is not only correct and updated, but also that all parties involved (both the Borrower and the Lender) agree to all the terms outlined in the Note. This will help to ensure that no legal issues arise from accidental breaches of the agreement.
Seek a Notary. While not required, it may be beneficial to seek the services of a notary to have the Promissory Note notarized, and to ensure that both parties are aware of the terms they are agreeing to.
Seek legal advice. It may also be beneficial to seek legal advice regarding the terms outlined in the Promissory Note. While Notaries may be legal professionals, their function is to prevent fraud, not provide legal advice. Consider seeking the services of a lawyer or other legal professional to make sure that the terms are valid and sensible.
Practice good contract management. Create a copy of the filled and signed Promissory Note and keep it in a safe and organized area. This will be useful for any possible legal purposes in the future, or simply as a backup in the event that something should happen to the original copy or copies.