The Advance Agreement For Sale Of House is utilized when parties wish to formalize their intent to proceed with a property transaction before executing the final sale agreement. This document is particularly important in the United States real estate market as it provides protection for both buyers and sellers by clearly defining the terms of the future transaction, including deposit arrangements, contingencies, and timelines. It serves as a crucial step in the property purchase process, especially when there are conditions that need to be met before proceeding to closing, such as financing approval or property inspections. The agreement must comply with both federal regulations and state-specific real estate laws.
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1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background: Context of the transaction and property description
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: Amount and payment terms
6. Deposit Terms: Amount, timing, and handling of deposit
7. Closing Date: Specified date for completion of transaction
8. Representations and Warranties: Statements of fact by both parties
1. Financing Contingency: Conditions related to buyer obtaining mortgage financing
2. Home Inspection Contingency: Terms for property inspection and potential issues
3. Sale of Existing Home Contingency: Conditions related to buyer selling current property
1. Schedule A - Property Description: Detailed legal description and property boundaries
2. Schedule B - Included Fixtures and Fittings: List of items included in the sale
3. Schedule C - Excluded Items: List of items explicitly excluded from the sale
4. Schedule D - Disclosure Statement: Required property condition disclosures
5. Schedule E - Title Exceptions: List of title encumbrances and restrictions
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