AGREEMENT OF SALE

The Agreement of Sale is the most necessary and important document of the real estate transaction. In Pennsylvania a contract for the sale of land is only valid if it is in writing. This Agreement should cover all of the foreseeable contingencies and should cover all of the terms of the sale or purchase. The Agreement of Sale locks in all the duties and obligations of the parties. If you do not cover all of the contingencies, you may be forced to complete a purchase or a sale that you do not wish to complete.

Some of the principal items covered are:

• Names of the parties, addresses
  
• Purchase price
  
• Deposit/security
  
• Settlement date
  
• Nature of ownership interest to be transferred
  
• Zoning classification (MANDATORY)
  
• Mortgage contingency
  
• Inspection contingencies
  
  • Structural
  • Sewage, water, radon, termite
  • Lead paint (MANDATORY)
    
    
• Risk of loss (if there is a fire or other damage between the date of the Agreement and settlement)
  
• Default provisions
  
• Allocation of real estate taxes and transfer taxes
  Settlement cost responsibilities and credits
  
• Items included or excluded from the sale (i.e., chandeliers, washer/dryer, etc.)
  

In addition to the above, there can be numerous other contingencies and conditions agreed to, such as:

• Lease back to owner
• Contingency as to the sale of Buyer’s house
• Seller take-back mortgage
• Credit for fuel oil

The terms of the Agreement should be clear and all-inclusive. It should be professionally drawn. All of the agreements drawn by Home Sale Services, Inc. will be reviewed with you by an attorney experienced in real estate law.

Frequently Asked Questions about Selling Your Own Home or Buying a Home!