A real property agreement is a lease, license, easment, or other right in real property that is material to a company or individual. In real estate, a real property agreement would include the piece of land as well as everything that attached to the land. It would also include the inherent ownership of any dwelling on the property.
Real property rights are important to establish early on in a deal. This ensures that both parties benefit from the deal and that no one is taken advantage of or robbed of property attached to the purchase in question.
Below is a list of common sections included in Real Property Agreements. These sections are linked to the below sample agreement for you to explore.
CONTRACT FOR SALE AND PURCHASE OF REAL PROPERTY
This Contract for Sale and Purchase of Real Property (“Agreement”) is executed this 30 th day of September, 2004, by Patrick S. Smith and Jane E. Smith (“Seller”) and Voyager Pharmaceutical Corporation, a Delaware corporation (“Buyer”).
A. Seller is the owner of real property located in Collier County, Florida, more particularly described in Exhibit A attached hereto (“Property”);
B. Buyer desires to purchase Seller’s Property as part of its employment arrangements with Patrick S. Smith; and
C. Seller desires to sell such Property to Buyer on the terms and conditions set forth herein.
NOW, THEREFORE, for and in consideration of the foregoing premises and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by Buyer and Seller, each to the other, Seller agrees to sell and Buyer agrees to buy the Property upon the following terms and conditions:
The foregoing Recitals are true and correct and are incorporated herein by reference.
2. Purchase Price and Method of Payment .
The purchase price (“Purchase Price”) for the Property shall be Three Million One Hundred Twelve Thousand Five Hundred and No/100 Dollars ($3,112,500.00), which shall be payable in cash at closing.
3. Effective Date .
The date from which commences any time period used for measuring performance or events hereunder shall be the date when the last of Seller and Buyer has properly executed this Agreement (the “Effective Date”).
The “Closing Date” or “Closing” of this Agreement and the transfer of title and possession of the Property shall occur on a date and at a time mutually agreeable to Seller and Buyer, but in no event later than October 31, 2004. The Closing shall be held at such time and place as may be mutually agreed upon by Seller and Buyer. Provided, however, at Seller’s option the Closing Date shall be reasonably extended no later than ninety (90) days to accomplish contingencies which have not been satisfied prior to the Closing Date.
5. Closing Procedure .
The Warranty Deed for the Property shall be delivered and recorded upon clearance of Buyer’s closing funds, and evidence of title shall be continued at Buyer’s expense to show title in Buyer, without any encumbrances or changes which would render Seller’s title non-insurable from the date of the last evidence of title to the recording of the Deed, with the exception of any purchase money mortgage Buyer may obtain.
6. Evidence of Title .
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7. Curative Rights .
If the title commitment discloses unpermitted exceptions or title defects, Seller, at its sole option, shall have thirty (30) days from the date of delivering the commitment within which to have the exceptions removed from the commitment, the commitment amended to insure against loss from or as a result of such unpermitted exception or defect, or the title defects cured to the reasonable satisfaction of Buyer. In such event, the Closing Date shall be thirty-five (35) days after delivery of the amended commitment if one is issued, or the time expressly specified in this Agreement, which ever is later. If Seller fails to have the commitment exceptions removed, the commitment amended or the defects cured within the specified time, or if Seller advises Buyer it will make no effort to remove, insure over or cure such defects, Buyer may only terminate this Agreement and receive the return of the aforementioned deposit or Buyer may elect, upon notice to Seller within ten (10) days after the expiration of the applicable curative period, or within ten (10) days after receipt of Seller’s notice that it will not attempt to remove the exception from the commitment, insure over or cure such defects, to take title as it then is notwithstanding such exceptions or title defects. Should the title commitment reveal the presence of mechanics’ liens,
a transfer to bond of such liens with a surety reasonably acceptable to Buyer, shall be deemed to have cured the defect arising because of such lien(s), for purpose of determining the status of title under this Agreement.
Seller shall convey fee simple title to the Property by general warranty deed, subject to real estate taxes for the year of closing (prorated), zoning, recorded covenants and restrictions, special taxing district requirements, special improvement and maintenance assessments, title defects waived by Buyer, and the matters specified or required by this Agreement. Unless otherwise herein provided to the contrary, the general warranty deed shall use the Exhibit A description.
9. Allocation of Closing Expenses .
Buyer shall pay all Closing Costs of this transaction; however, each party shall pay its respective attorney’s fees.
10. Time of the Essence .
TIME IS OF THE ESSENCE OF THIS AGREEMENT. When a date upon which a specified event shall occur or be performed falls upon a weekend or official holiday, the time allowed for the event or performance to occur shall be extended to 5:00 p.m. of the next succeeding business day.
Real property taxes for the year of Closing, and annual installment applicable to the year of Closing on public improvement liens and special assessments, and other proratable items shall be paid entirely by Buyer. All ad valorem taxes for prior years shall be paid by Seller.
12. Infestation Provision .
Buyer, at its expense, may obtain, prior to Closing, a written statement of a local, licensed and bonded exterminating company showing whether or not there are or ever have been any wood-destroying or damaging organisms in the improvements of the Property. In the event that there are any costs required to treatment required to remedy any present or past infestation so reported, including the cost of repairing or replacing all portions of the improvements which have been damaged, Buyer shall pay such costs. However, in the event that the repair cost to be incurred pursuant to this paragraph is more than one percent (1%) of the Purchase Price, then either party may cancel this Agreement within five (5) days after the receipt of the termite inspection report by giving written notice to the other and thereupon all parties will be released from any liability under this Agreement. Buyer, however, may waive defaults or defects related to wood-destroying organism infestation, and require Seller to close notwithstanding such infestation, in which case there shall be no adjustment to the Purchase Price.
13. Typewritten or Handwritten Provisions .