A purchase agreement is a legal document that sets out all the conditions for the transaction. The purchase agreement includes an act of purchasing the real estate properties. As a rule, the terms of this agreement are determined by negotiations between the buyer and the seller. Most often, the purchase agreement is used in real estate, although similar agreements are also made when buying financial assets, for example, blocks of shares. In this context, Virginia real state purchase agreement form is also an official document which provides the necessary information required to complete purchase agreement. This document serves as a written agreement between a buyer and seller. The real state purchase agreement is usually developed and proposed by the buyer and it is subjected towards the acceptance of seller’s term and conditions. The Virginia real estate purchase agreement form is not intended to transfer the title of the lot, building or a home, rather, this document is intended to provide the framework which contains the rights and responsibilities of each party before the occurrence of a legal transfer of the title.
Additionally, a simple Virginia real estate purchase agreement form aims to identify the basic elements of a real state purchase agreement which include, the detail of buyer and seller, details of property, purchasing price, representation and warranties, lead-based paint disclosure, closing and possession dates, title insurance, contingencies, financing, dispute resolution, option to terminate, risk of loss, closing cost and closing deliverables. As discussed above that Virginia real estate purchase agreement form aims to give an idea to both parties about their legal rights and obligations, therefore, these elements will provide a clear guideline to both parties about these rights. In addition to that, this document is also aimed to provide clear guidelines for the termination of the contract. For example, it also represents different conditions in which the contract will be considered as void and in what conditions one of the party have the right to terminate the contract. In most of the cases, the purchase agreement is considered as void when one of the party is unable to perform in a way as it was prescribed in the real state purchase agreement form. The Virginia real estate purchase agreement form serves as a basis for further drawing up a binding contract between the parties to the transaction.
Moreover, the text of the agreement describes the conditions that the buyer must fulfil before he can obtain from the seller ownership of the house. In addition, the purchase agreement regulates the seller’s liability to the buyer, for example, for the proper condition of the property or for the timely departure of current tenants. The purchase agreement can be terminated and the ground for termination is the inability of one of the parties to fully comply with the conditions described. For example, if a buyer does not have enough money for a down payment or does not meet credit standards, the seller has the right to terminate the transaction.