A Real Estate Buy Out Agreement is essential when one party wishes to purchase property interests from another party in the United States. This document is commonly used in situations involving property ownership transfers, partnership dissolutions, or investment exits. The agreement must comply with both federal and state-specific real estate laws and typically includes detailed provisions about property valuation, payment terms, due diligence requirements, and closing conditions. It serves as the primary document governing the transaction and protecting all parties' interests throughout the buyout process.
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1. Parties: Identification of all parties involved in the buyout, including legal names and addresses
2. Background: Context of the transaction and property details
3. Definitions: Key terms used throughout the agreement
4. Purchase Price and Payment Terms: Detailed breakdown of the purchase price and payment structure
5. Property Description: Legal description of the property being transferred
6. Closing and Transfer of Title: Terms and conditions for closing the transaction
7. Representations and Warranties: Statements of fact and promises by both parties
1. Due Diligence: Optional section covering buyer's right to investigate property condition - include when buyer requires inspection period
2. Financing Contingency: Optional section covering conditions related to obtaining financing - include when purchase depends on buyer securing financing
3. Property Management Transition: Optional section covering terms for transitioning property management - include for income-producing properties
4. Environmental Matters: Optional section covering environmental compliance and responsibilities - include for commercial properties or properties with known environmental issues
1. Schedule A - Property Description: Detailed legal description and property boundaries
2. Schedule B - Title Documents: Current title report and related documents
3. Schedule C - Environmental Reports: Any environmental assessments or reports
4. Schedule D - Property Condition Report: Current condition assessment and inspection reports
5. Schedule E - Existing Leases: Copies of current lease agreements if applicable
6. Schedule F - Property Tax Records: Current tax assessment and payment history
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