The Scoop on the Ohio Real Estate Purchase Contract for Sale by Owner
Are you interested in a property in Ohio and want to draft a real estate purchase contract? Or learn more about writing contracts in general? DoNotPay has got your back! We can teach you what you need to know about an Ohio real estate purchase contract for sale by an owner and how to deal with various legal documents!
A real estate purchase agreement is a legally binding contract between the buyer and property owner outlining the purchase details. The seller does not have a realtor or agent but sells the property directly, while the seller can hire a professional to represent them.
The agreement contains the usual terms and conditions, such as the purchase price, payment plan, average duration of the contract, and liabilities. The buyer proposes the agreement. It is up to the seller to accept it.
Four essential elements make a purchase contract valid:
- Consideration—This is an exchange of values. In real estate contracts, the seller exchanges their property while the buyer exchanges money or assets
- Offer—The buyer should make an official offer to purchase the property
- Acceptance—Both parties accept the terms and conditions of the arrangement
- Legal capacity—Both parties must be legally capable, above the age of 18, and mentally fit to enter the agreement
Make sure that your real estate purchase contract for sale by the owner aligns with the above because failing to meet the criteria can make the deal null and unenforceable.
Although every contract is unique, a few essential elements are common for every real estate purchase contract. The following table outlines various clauses you need to include in your agreement:
|Key element||Brief explanation|
|The buyer and seller details||Names, addresses, and contact information of both parties|
|Earnest money||A percentage of the actual price, confirming that the buyer wants to buy the property. An impartial third party holds this amount in escrow. If the buyer backs out without a sound reason, the seller receives this amount|
|Liabilities and contingencies||
|The possession date||The effective date of the change of ownership|
|Signature||Signatures of both parties to show they have understood and agreed to the terms of the contract|
Property sellers in Ohio must fill out the Residential Property Disclosure Form. The document contains information about any problems with the property, such as leaks, pests, and electricity problems. Once they have filled the form, they should give it to the potential buyer. If the buyer signs the agreement before receiving this form, they can back out of the contract within three business days without being penalized.
Ohio law requires the seller to state only the problems they know about when filling out this form. The seller does not need to hire an inspection team to fill the form out for them.
Ohio sellers are obligated to disclose the following:
|Lead-based paint disclosure||If a property built before 1978 contains toxic paint, sellers should disclose this information|
|Seller’s property condition disclosure||Sellers need to disclose the actual state of the property|
|Buyer’s due diligence checklist||How the buyer should carry out due diligence before purchasing a property|
According to the Statute of Frauds, real estate purchase contracts need to be in writing because verbal agreements are not legally binding.
If any party backs out of a written contract without a valid reason, they will be held liable and subject to disciplinary action, including a lawsuit.
The only other way to terminate the agreement is to have an out-of-court settlement with the seller.
Drafting real estate purchase agreements can be tricky, so it’s best to consult a lawyer to create one for you. If hiring legal help is over your budget, you can look for contract templates online to get a basic idea of creating a contract.
Are online templates not working out because they’re outdated and sometimes even grammatically incorrect? Use DoNotPay to generate various legal documents in an instant!
Here is how it works:
- Sign up for DoNotPay
- Type the name of the document
- Answer a few questions from our chatbot
DoNotPay will send the document to you, and you can download and print it. In some cases, you will need to get the document notarized. Check your state laws to confirm if your agreement requires notarization.
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