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Anderson Street

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Submitted By ktcn414
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Whenever a transaction of property takes place in the real estate industry, there is a purchase and sale agreement form that needs to be signed and agreed upon by both the buyer and seller. The form will have the terms and conditions, as outlined in Exhibit 2, of the sale. This is the same case whenever a landlord, should Charlie Leonard proceed to purchase the property, leases out his/her property to tenants; an agreement must be signed between the lessor and lessee that details all the terms and conditions of the lease.
Both parties’ names will be listed on the top of the sale agreement and each will be classified as the “Seller” and “Buyer”. These two terms are used for the rest of the agreement to make transparent each side’s responsibilities. The buildings, structures, improvements, and fixtures are important as property age over time and so in certain circumstances, parts of the property (ex: windows, doors, fences) will need to be replaced. Again, the seller and buyer will discuss which side will be footing the cost of these repairs. Leonard, in Exhibit 1, has budgeted repairs to be around 5%, or roughly $2,200. One of the most important parts of the sale agreement is the purchase price, agreed upon by both the buyer and seller. A security deposit is necessary to show that the buyer is committed to this transaction while the payment is due whenever the transaction of the deed takes place.
Title deeds also play an important factor as they consist of documents that show official ownership of the property. The deeds contain information ranging from current mortgages to land-use restrictions, zoning ordinances to property history, and any other information regarding the property that is pertinent to the seller. Once again, the seller needs to make clear to the buyer on what deeds exist on the property. Deeds consist of a huge chunk of the first half of the sale agreement and therefore Leonard needs to ensure he is able to understand fully what he is getting himself into. Deeds differ from agreements as only one party signs a deed. In this case, Leonard will need to get the deeds transferred by the previous owner, should he decide to pursue the property. The transfer of deeds signifies the official transition from buyer to seller, and this typically takes place once the sale agreement is signed and payment is processed. This means the property title will be officially changed from the buyer to seller.
Deeds lead to the certification of insurance and Leonard needs this insurance to get a certificate of title. Insurance always play an important role as the most properties seek out insurance from fire or natural disasters. Again, this insurance (from Exhibit 1, around $1000) is vital for Leonard to get his bank loan and financing for his purchase.

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