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:
Purchase Agreement
| State of ______________ | |
| PURCHASE AGREEMENT | |
This Purchase Agreement (this “Agreement”) is entered into as of ______ day of _______________, 20______, (the “Effective Date”) by:
Seller(s)
________________________, located at ________________________________________ and ________________________, located at ________________________________________ and ________________________, located at ________________________________________
(collectively “Seller”) and
Buyer(s)
________________________, located at ________________________________________ and ________________________, located at ________________________________________ and ________________________, located at ________________________________________
(collectively “Buyer”).
Each Seller and Buyer may be referred to in this Agreement individually as a “Party” and collectively as the “Parties.”
The Parties agree as follows:
- Sale of Property. Seller agrees to sell and Buyer agrees to purchase the personal property described below (the “Property”):
____________________________________________________________________________________
________________________________________________________________________________________________________________________________________________________________________
- Purchase Price. Buyer will pay Seller for the Property and for all obligations specified in this Agreement, if any, as the full and complete purchase price including any applicable sales tax, the sum of $_________________ (the “Purchase Price”).
- Payment. Payment of the Purchase Price will be made by Buyer to Seller by (Check all that apply)
☐ cash ☐ personal check ☐ money order ☐ cashier’s check ☐ credit or debit card ☐ wire transfer ☐ other: _________________________, according to the following schedule: (Fill out all that apply)
- $_________________ previously paid by Buyer.
- $_________________ upon the execution of this Agreement.
- $_________________ upon Buyer’s acceptance of the Property.
- D. equal installment payments of $_________________ payable on the ___________ [Day of month] of each month until the Purchase Price is paid in full.
- Taxes. Buyer will be responsible for filing all required sales and use tax returns in connection with the transfer of the Property. Buyer will also pay all required sales and use taxes and any other transfer costs and expenses that arise as a result of the transfer of the Property. Seller will pay all personal property taxes associated with ownership of the Property and accrued for the period ending on the Effective Date and Buyer will pay all such personal property taxes that accrue thereafter.
- Delivery. Buyer will be entitled to take possession of the Property on ____________________, 20______. If delivery is to be made at a date after the Effective Date, it is Seller’s duty to ensure the Property is delivered in the same condition as when last inspected by Buyer.
- Seller’s Representations. Seller represents and warrants that he/she has good and marketable title to the Property and full authority to sell the Property. Seller also represents that the Property is sold free and clear of all liens, indebtedness, or liabilities. Buyer may request a Bill of Sale from the Seller for the Property. Seller makes no other representations or warranties concerning the Property, which is being sold and assigned “as is,” and without any warranty of merchantability or fitness for a particular purpose. Seller expressly disclaims any representations or warranties as to the value, condition, or functionality of the Property or its suitability for any particular purpose and Buyer will have no recourse against Seller for the Property.
- Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of _________________, without giving effect to the conflict of laws principles thereof.
- Disputes. Any dispute arising from this Agreement shall be resolved through: (Check one)
☐ Court litigation. Disputes shall be resolved in the courts of the State of ______________.
(Check if applicable)
☐ If either Party brings legal action to enforce its rights under this Agreement, the prevailing party will be entitled to recover from the other Party its expenses (including reasonable attorneys’ fees and costs) incurred in connection with the action and any appeal.
☐ Binding arbitration. Binding arbitration shall be conducted in accordance with the rules of the American Arbitration Association.
☐ Mediation.
☐ Mediation, then binding arbitration. If the dispute cannot be resolved through mediation, then the dispute will be resolved through binding arbitration conducted in accordance with the rules of the American Arbitration Association.
- 9. Miscellaneous. This Agreement shall be binding upon the Parties and their respective heirs, successors and assigns. The provisions of this Agreement are severable. If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision. The section headings are for reference purposes only and shall not otherwise affect the meaning, construction or interpretation of any provision of this Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes any and all prior oral or written agreements or understandings between the Parties concerning the subject matter of this Agreement. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the Effective Date.
SIGNATURES
| Seller Signature | Seller Full Name |
| Seller Signature | Seller Full Name |
| Seller Signature | Seller Full Name |
| Buyer Signature | Buyer Full Name |
| Buyer Signature | Buyer Full Name |
| Buyer Signature | Buyer Full Name |
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.
FAQs/Related Questions
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.