The Principal Residence Purchase Contract serves as the foundational document for residential real estate transactions in the United States. This contract is essential when an individual or family intends to purchase a property as their primary residence. It includes crucial elements such as property description, purchase price, payment terms, contingencies, and closing requirements. The document must comply with both federal regulations (such as RESPA and TILA) and state-specific real estate laws. It provides legal protection for both buyers and sellers while ensuring all necessary disclosures and conditions are properly documented.
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1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background: Brief context of the transaction and property identification
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: Amount and payment terms including deposits
6. Closing Date: Specified date for completion of the transaction
7. Title and Ownership: Provisions regarding clear title and transfer of ownership
8. Representations and Warranties: Standard assurances from both parties
9. Default and Remedies: Consequences of breach by either party
1. Financing Contingency: Terms related to buyer's ability to secure mortgage
2. Inspection Contingency: Terms for property inspection and results
3. Sale of Existing Home Contingency: Conditions related to buyer's need to sell current home
4. HOA Provisions: Terms related to homeowners association membership and requirements
1. Property Disclosure Statement: Seller's disclosure of property condition and known issues
2. Inventory of Fixtures and Fittings: List of items included/excluded from sale
3. Title Documents: Current title deed and related documents
4. Property Survey: Recent survey of property boundaries
5. Lead Paint Disclosure: Required disclosure for homes built before 1978
6. HOA Documents: Rules, regulations, and financial statements if applicable
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