Who Prepares Sales and Purchase Agreement
2022年8月29日
When it comes to buying or selling a property, one crucial document that plays a significant role in the process is the Sales and Purchase Agreement (SPA). It is a legally binding contract that outlines the terms and conditions of the transaction between the buyer and the seller.
But who prepares the SPA? Is it the responsibility of the buyer, seller, or a third party? Let`s explore in detail.
The party responsible for preparing the SPA may differ based on the location and the type of property transaction. In general, the seller`s lawyer drafts the SPA. However, in some cases, the buyer`s lawyer can also prepare the document.
Here are the details of the parties involved in preparing the SPA:
Seller`s Lawyer:
The seller`s lawyer is responsible for drafting the SPA. The lawyer ensures that the terms and conditions are in compliance with the relevant laws and regulations. They also ensure that the agreement is fair to both the parties and that there are no discrepancies.
The SPA drafted by the seller`s lawyer will include details such as the property`s legal description, purchase price, closing date, contingencies, and other essential terms and conditions.
Buyer`s Lawyer:
In some cases, the buyer`s lawyer may prepare the SPA. It usually occurs when the buyer wants to include specific terms and conditions that are not present in the standard SPA. The buyer`s lawyer will ensure that the SPA`s provisions are in compliance with the relevant laws and regulations.
If the buyer`s lawyer prepares the SPA, they will include the terms and conditions based on the buyer`s preferences, such as financing terms, home inspection contingencies, and other essential factors.
Third Party`s Involvement:
Sometimes, a real estate agent may be involved in preparing the SPA. While the real estate agent is not authorized to draft a SPA under law, they can help the buyer and seller understand the SPA`s terms and conditions. They can also explain the standard clauses included in the SPA and ensure that all parties are aware of the contract`s details.
To conclude, the SPA is a critical document in the real estate transaction, and it is essential to get it right. Whether it`s the seller`s lawyer or the buyer`s lawyer preparing the SPA, ensure that the SPA`s provisions are fair and comply with the relevant laws and regulations. With the right legal counsel, you can ensure a smooth transaction and a hassle-free closing.