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What Should I Include in my Ohio Purchase and Sale Agreement?

Your Ohio residential purchase agreement should contain several essential components, including:

  • The names of both the buyer and seller.
  • A detailed description of the property being sold, including its address and legal description.
  • The agreed-upon purchase price of the property.
  • Terms of financing, if applicable.
  • The scheduled sale date.
  • The date when the buyer will take possession of the property.
  • A statement declaring the property is sold “as is,” including all faults.
  • A provision allowing the buyer a specific period to conduct a professional property inspection before the sale is finalized.
  • A requirement that the seller complete any necessary repairs before closing, with the seller covering these costs.
  • A clause stating that the agreement will be void if either party breaches any terms.

Incorporating these key elements into your Ohio purchase agreement can help promote a smooth and successful real estate transaction.

How to Fill Out an Ohio Purchase and Sale Agreement?

An Ohio residential purchase and sale agreement must contain specific information to be legally enforceable.

1. Names of the Buyer and Seller

Begin by entering the full legal name of the individual or entity intending to acquire the property (the “buyer”). Next, provide the current owner's name, whether an individual or a business, who plans to transfer ownership (the “seller”).

2. Contract Date

Insert the date the buyer and seller formally agree to the terms outlined in this purchase and sale agreement.

3. Property Address and Legal Description

Include the physical address of the residential property and a brief legal description, typically including the parcel number as assigned by the county.

4. Purchase Price

Specify the total purchase amount agreed upon by the buyer for the property, written in numerical and word form. If personal property (e.g., appliances or furniture) is part of the sale, itemize these items and their values.

5. Earnest Money Deposit

The buyer must usually make a good faith deposit, or "earnest money deposit," at the contract signing. Indicate the deposit amount, often as a check or money order made payable to the seller.

6. Closing Date

This section should state the planned date for finalizing the sale and transferring the property to the buyer. Typically, this occurs 30-60 days from the contract date, though the timing can vary.

7. Financing Contingency Clause

This clause safeguards the buyer by making the sale dependent on securing financing. If the buyer cannot obtain a loan within a set timeframe, they may withdraw from the contract without penalty.

8. Home Inspection Contingency Clause

This clause allows the buyer to have the property inspected by a professional before closing. If the inspection uncovers issues, the buyer can negotiate adjustments to the price or cancel the contract.

9. Seller’s Disclosures

In Ohio, sellers must disclose relevant property details to the buyer before entering the contract. This includes any known defects or issues and potential environmental hazards.

10. Signatures of Buyer and Seller

Both parties must sign and date the agreement to become legally binding. Each should retain a signed copy for their records.

When to Use an Ohio Purchase and Sale Agreement?

An Ohio purchase contract should be utilized whenever real property is being sold within Ohio. This contract applies to various types of real estate transactions, including the sale of a home, condominium, land, or other residential properties. A residential purchase and sale agreement benefits both parties by clearly outlining the terms and conditions of the sale, such as the price, financing terms, inspections, repairs, and other crucial elements of the transaction. This agreement legally binds both the buyer and the seller, and any modifications require mutual written consent.

When Not to Use an Ohio Purchase Contract?

There are certain situations where an Ohio purchase contract would be inappropriate, including:

  • The sale of personal property, such as furniture or vehicles.
  • The sale of securities, like stocks or bonds.
  • The sale of a business.
  • The sale of property located outside of Ohio.

What Are the Risks Associated with an Ohio Purchase and Sale Agreement?

There are several risks associated with entering into an Ohio residential purchase agreement, including:

  • The buyer may withdraw from the agreement before closing, potentially leaving the seller without a buyer.
  • The buyer may be unable to secure financing, which could cause the transaction to fall through.
  • The property could have undiscovered defects that only come to light after the sale is finalized.
  • The buyer and seller may disagree on necessary repairs, potentially causing delays or cancellation of the transaction.
  • The buyer might default on the loan, leaving the seller responsible for the mortgage payments.
  • The property could be damaged or destroyed before closing, leaving the seller liable for repairs.
  • The closing may not occur on the scheduled date, which can lead to financial losses or other damages.
  • The buyer could refuse to sign the deed, potentially leading to a legal dispute.
  • The buyer might lack the required down payment, causing the transaction to fall.
  • There could be liens or other claims against the property that aren’t uncovered until after the sale completes.