When you`re buying or selling a property, one of the most important documents you`ll need to sign is a purchase agreement. This legally binding contract outlines the terms and conditions of the sale, including the purchase price, contingencies, and closing date.
But how long does a purchase agreement last? The answer is that it depends on several factors, including the terms of the agreement and state laws.
Typically, a purchase agreement will have a specific time frame for the buyer and seller to complete certain tasks. For example, the buyer may have a set number of days to inspect the property and secure financing, while the seller might have a deadline for completing any necessary repairs.
Once these tasks are completed, the purchase agreement will typically remain in effect until the closing date, which is when the property changes hands and the sale is finalized. In some cases, the closing date may be delayed due to unforeseen circumstances, such as a title issue or financing problem.
If the closing date is delayed, the purchase agreement may need to be extended. This can be done by adding an addendum to the agreement, which outlines the new closing date and any other changes to the terms of the sale.
In some cases, a purchase agreement may also have a contingency that allows either party to back out of the sale if certain conditions aren`t met. For example, the buyer may have a contingency that allows them to cancel the sale if the home inspection reveals major defects in the property.
If either party decides to cancel the sale due to a contingency, the purchase agreement will no longer be in effect. However, it`s important to note that there may be consequences for breaking the agreement, such as losing your earnest money deposit.
In general, a purchase agreement will remain in effect until the closing date, unless it`s extended or terminated due to a contingency. If you`re unsure about the terms of your purchase agreement or have questions about the closing process, it`s always a good idea to consult with a real estate attorney or other legal professional.
