The San Francisco Association of Realtors Purchase Agreement – Understanding the Key Points
The San Francisco Association of Realtors (SFAR) purchase agreement is a legal document that outlines the terms and conditions of a real estate transaction in San Francisco. This agreement is used by real estate agents, buyers, and sellers to ensure that the sale of a property is legally binding and fair to all parties involved.
As a buyer or seller, it is important to understand the key points of the SFAR purchase agreement before signing it. Here are some of the important points to consider:
1. Property Details: The agreement should include the address of the property, the legal description, and the size of the property. It should also state what personal property is included in the sale, such as appliances or fixtures.
2. Purchase Price: The purchase price of the property should be clearly stated in the agreement. This includes the down payment and the amount financed if there is any.
3. Contingencies: Contingencies are conditions that must be met for the sale to be completed. These can include inspections, financing, or the sale of the buyer`s existing property. The agreement should clearly state what contingencies are in place and how they will be handled.
4. Disclosures: The seller is required to disclose any known defects or issues with the property. This can include issues with the title, structural problems, or environmental hazards. The buyer has the right to review these disclosures before signing the agreement.
5. Closing Date: The closing date is the date on which the sale is completed. The agreement should state the date and time of the closing and any penalties for delays.
6. Earnest Money: The buyer typically puts down a deposit, known as the earnest money, to show their commitment to the purchase. The agreement should state the amount of the earnest money and how it will be handled if the sale falls through.
7. Brokerage Fees: The agreement should state the brokerage fees that will be paid by both parties. This includes the commission paid to the seller`s agent and the buyer`s agent.
It is important to review the SFAR purchase agreement carefully and ask any questions before signing it. A professional can help ensure that the agreement is free of errors and easy to read. With a clear understanding of the key points, both buyers and sellers can be confident that the transaction will be completed smoothly and fairly.