A purchase agreement is a document that outlines the terms and conditions of a sale. Purchase agreements are often used for high-value items or custom orders where the buyer or seller needs assurance that both parties will follow through with the agreed-upon terms.
This document can also be referred to as a:
- Purchase and Sale agreement
- Purchase Contract
Note that the buyer can’t use a purchase agreement to prove ownership — you’ll need a bill of sale to officially transfer ownership of the item from seller to buyer.
How to Write a Purchase Agreement
To write a purchase agreement, you need to collect some important information. The agreement should identify the following essential elements:
- Seller: the party who owns the property and wants to sell it
- Buyer: the party who will buy the property and become the new owner
- Property: a detailed description of the property that is being sold
- Purchase price: how much the buyer will be paying
- Payment: how and when the seller will be paid
Once you have this information, you can put it together as shown here:
- List the seller’s and buyer’s information, including their name, address, and contact details such as phone numbers or email addresses. Make it clear which person is buying and which is selling.
- Describe the property that’s being sold. If multiple pieces of property are being sold at once, they can all be included here on individual lines.
- List the price for the property being sold. If sales taxes or other fees apply, explain who will be responsible for paying those taxes or fees.
- Explain how payment will be made by the buyer to the seller and how the property will be delivered.
- List any other terms, conditions, warranties, and liability waivers that are relevant to the sale.
To get started creating your purchase agreement, you can use our document builder, which has tips and instructions to help you, or you can write one from scratch using our template as a guide.
Sample Purchase Agreement Form
The following purchase agreement template shows how you can outline the essential details of the agreement between buyer and seller:
Tips for Writing a Purchase Agreement Form
Be as descriptive as possible when you’re writing your purchase agreements. Include identifying information such as serial numbers, distinctive markings, and size and dimensions.
If you don’t know the other party well, try to arrange to meet in a public place to go over and sign the agreement. Feel free to ask the other party to show ID to confirm their personal details.
Also, make sure both the buyer and seller have reviewed and understand the terms of the agreement before signing.
Can I write my own purchase agreement?
Yes, you can write your own purchase agreement. As long as the document includes all the necessary information and is signed by both parties, it will be considered legally valid.
What is a buying agreement?
A buying agreement is another name for a purchase agreement. Purchase agreements are contracts outlining the terms of a sale. You can use a buying agreement for any kind of property, but it’s best to use a real estate purchase agreement for the purchase of a home.
If you’re selling or buying a business, you should use a business purchase agreement.