Here, you can get an idea of what to include in your North Carolina purchase agreement. However, before signing your agreement, better get legal advice to make sure you follow the North Carolina law in the buying process.
Step 1 – Who is entering the contract?
The first section of the purchase agreement will ask for the names of the parties involved in the sale. The buyer and seller should both enter their full legal name. If there is more than one buyer or seller, each party should fill out a separate section.
Step 2 – When was the contract made?
The next section will ask for the date of the contract.
Step 3 – What is being purchased?
The next section will ask for a description of the property being sold. This should include the address, city, and state where the property is located. The description should also include the lot size, square footage, and any other pertinent information.
Step 4 – How much is being paid for the property?
The next section will ask for the purchase price of the property. The purchase price should be entered in US dollars.
Step 5 – How is the purchase price being paid?
The next section will ask how the purchase price is being paid. The options are “cash”, “loan”, or “lease-option”.
If the property is being paid for in cash, the buyer should initial this section.
If the property is being financed by a loan, the lender’s information should be entered in this section along with the interest rates, loan terms, etc.
If the property is being leased with an option to purchase, the terms of the lease should be entered in this section.
Step 6 – What is a due diligence period?
A due diligence period is a set amount of time in which the buyer can investigate the property and decide if they want to move forward with the sale. The due diligence period should be entered in this section along with the start and end date.
Step 7 – What is an earnest money deposit?
An earnest money deposit is a deposit made by the buyer to show that they are serious about purchasing the property. The earnest money deposit should be entered in this section along with the amount and who is holding the deposit.
Step 8 – What are the closing costs?
The next section will ask for an estimate of the closing costs. Costs for closing are the fees associated with buying property and can include things like loan origination fees, appraisal fees, and title insurance. The buyer and seller should each initial this section.
Step 9 – Who is responsible for paying the closing costs?
The next section will ask who is responsible for paying the closing costs. The options are “buyer”, “seller”, or “split”. If the buyer is paying all of the costs, they should initial this section. If the seller is paying all of the closing costs throughout the buying process, they should initial this section. If the costs for closing are being split between the buyer and seller, they should each initial this section.
Step 10 – When is the closing date?
The next section will ask for the desired closing date. The closing date is the day that the sale of the property will be finalized and the deed will be transferred.
Step 11 – Where will the closing take place?
The next section will ask for the location of the closing. The closing is the meeting where the deed is transferred and the sale is finalized. The address of the property should be entered in this section.
Step 12 – When is the property being sold?
The next section will ask for the date of the sale.
Step 13 – When is possession of the property being transferred?
The next section will ask for the date of possession.
Step 14 – Who is responsible for paying the taxes?
The next section will ask who is responsible for paying the taxes on the property. The options are “buyer”, “seller”, or “split”. If the buyer is paying all of the taxes, they should initial this section. If the seller is paying all of the taxes, they should initial this section. If the taxes are being split between the buyer and seller, they should each initial this section.
Step 15 – What type of deed will be used?
The next section will ask what type of deed will be used for the sale. The options are “quitclaim deed”, “special warranty deed”, or “warranty deed”. If you are unsure which type of deed to use, it is best to consult with a lawyer.
Step 16 – Who will prepare the deed?
The next section will ask who will prepare the deed. The options are “buyer”, “seller”, or “title company”. If the buyer is preparing the deed, they should initial this section. If the seller is preparing the deed, they should initial this section. If a title company is preparing the deed, their information should be entered in this section.
Step 17 – How is the property being financed?
The next section will ask how the property is being financed. The options are “cash”, “loan”, or “lease-option”. If the property is being paid for in cash, the buyer should initial this section. If the property is being financed by a loan, the lender’s information should be entered in this section. If the property is being leased with an option to purchase, the terms of the lease should be entered in this section.
Step 18 – What are the contingencies?
The next section will ask for any contingencies that are part of the sale. A contingency is a condition that must be met in order for the sale to go through. Common contingencies include financing, inspections, and appraisals. If there are no contingencies, the buyer should initial this section.
Step 19 – What are the seller’s disclosures?
The next section will ask for any disclosures that the seller is required to make. These disclosures can vary depending on the state where the property is located. Common disclosures include Lead-Based Paint, Asbestos, and Radon. If the seller is not aware of any material defects with the property, they should initial this section.
Step 20 – Are there any easements or rights of way?
The next section will ask if there are any easements or rights of way on the property. An easement is a legal right to use someone else’s property for a specific purpose. A right of way is a legal right to pass through someone else’s property. If there are no easements or rights of way, the buyer should initial this section.
Step 21 – What restrictions are in place?
The next section will ask about any restrictions that are in place on the property. A restriction is a legal limit on what can be done with the property. Common restrictions include zoning, historic preservation, and homeowners association rules. If there are no restrictions, the buyer should initial this section.
Step 22 – What are the HOA dues?
The next section will ask for the monthly homeowner’s association dues, if applicable. Homeowner’s association dues are fees that are paid to the homeowners association in order to maintain the common areas of the property. If there are HOA dues, the amount should be entered in this section.
Step 23 – What are the residential property taxes?
The next section will ask for the annual property tax amount. The property tax amount should be entered as a whole number. For example, if the residential property tax amount is $1,000, you would enter “1000”.
Step 24 – What is the tax rate?
The next section will ask for the property tax rate. The property tax rate should be entered as a whole number. For example, if the property tax rate is 1%, you would enter “1”.
Step 25 – When are the property taxes due?
The next section will ask for the date that the property taxes are due. The date should be entered in MM/DD/YYYY format.
Step 26 – Other terms
Make sure to include the terms that touch on the rights and responsibilities of the parties as well as the way of solving possible conflicts of interest in the future.
Step 27 – Signatures
Lastly, sign the agreement confirming that you agree to its terms.
