Purchase agreement is also referred as the purchase agreement form, purchase and sale agreement as well as purchase contract. Basically, purchase agreement is made to give more detailed information about purchasing one particular item usually heirloom jewelry or maybe the customized vehicles or other things considered being valuable. This simple paper trail however cannot be used for real estate transfer.
Who Will Need Purchase Agreement?
The purchase agreement will be needed when a purchase of something considerably valuable will be done. The agreement will be needed by:
• The person who is selling the personal belonging to other people.
• The person who is buying or purchasing the other person’s valuable belongings and wishes to keep documentation.
• The person who wants to exchange the ownership about valuable things.
• A company that want a guarantee of bulk items that they are bought
What Will Be Included in the Purchase Agreement?
The next thing to be known is about the things included in the purchase agreement. What are those important things? They are as the followings:
• The contact information of buyer and seller.
• Terms and condition that will include the agreed price, things that will be included in the package, how will the purchased item be delivered, the payment and how to pay them and many others. It will also set up the obligations and conditions that will be abide by buyer and seller.
• What will happen if there is buyer or seller “defaults”? Is there any compensation? What kind of compensation will be given?
• Deposit will usually be asked by seller to buyer. Usually the deposit will be 10% of the purchase price and will usually paid by buyer but explaining this in purchase term will make this matter clearer.
• Settlement date will need to be made clear. Aside of that, the payment date will also need to be made clearer further.
Why Purchase Agreement is Important?
Many people will go with all informalities when they want to buy other people’s personal belongings. This sometimes will lead into troubles and misunderstandings. Therefore, the purchase agreement is recommended to be made between the seller and the buyer. By having the purchase agreement, none of the both parties will be left without receiving what they suppose to get. This agreement reduces fraud possibility. Below is one sample of purchase agreement that you can learn to understand more what clauses usually written in this type of agreement.
Purchase Agreement Template (33.5 KiB, 478 hits)