Does the purchase price of property include the total cost of the property if a gift of equity is occurring?

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Does the purchase price of property include the total cost of the property if a gift of equity is occurring?

Purchase and Sale Agreement in contract states that the purchase price of
property to be paid by buyer is the estimated total price for the property. We are
buying the property from my in-laws. They agreed to give us a gift of equity.
They agreed to sell us the property for 190,000. So would this part of the
contract state that we are paying 190,000 or would it state the total? There is
an Exhibit A stating that they will gift an amount of equity. But that is all that is
stated in the contract. Thank you

Asked on October 6, 2018 under Real Estate Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The purchase price is what the buyer actually pays for the property. Purchase price is separate and distinct from value: value can be lower or higher than what you purchase the property for. If being sold to you for $190k, purchase price is $190k.


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