How can a future purchase of property be made legally binding?

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How can a future purchase of property be made legally binding?

Have agreed to buy an owners house if he buys ours. We must wait until we file with IRS to prove 2 years of self-employment. Is there an instrument that will bind such an agreement? If so, what? And if not  then how can I make sure I’m not wasting time by not marketing mine?

Asked on September 16, 2011 under Real Estate Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

In order to enter into a legally binding signed and dated agreement where you buy a certain person's home and he or she buys yours, you first need a written agreement setting forth with specificity all the terms and conditions for the purchase and sale such as price, close of escrow, loan issues and the like.

I recommend that you consult with an experienced real estate attorney to draft up the two buy sell agreements to include all contingencies, disclosures, addendums, third party expert inspections and the like as well as to establish an escrow and order preliminary reports for both parcels.

In your situation due to certain contingencies as with most sales, a written agreement is entered into by the parties "subject to" certain contingencies occurring and being waived as investigation concerning the conditions of the proeprties and loan applications continues.

Good luck.

 


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