Ohio Real Estate Purchase Agreement

Legal Aspects 

Some of the most prevalent legal aspects concern what information is present in the agreement. That’s why we look at the basic terms you must include and the legal requirements present in this document.

Writing Requirement

• Four (4) essential elements ensure your agreement is valid and legally binding.
  • First is the Offer, generally where the buyer makes a written offer to purchase the house.
  • Second is the Acceptance of that offer, where the seller responds in writing to accept the buyer’s offer.
  • Third is Consideration, where both parties agree to exchange something of value for this deal. In this case, the seller trades their real estate for the buyer’s money.
  • The last element is that the contract must have a Legal Purpose. The terms cannot breach Ohio laws, and its action must be legal.

• When drawing up the actual purchase contract, you must ensure you add all the relevant information. While you can add terms specific to the sale, you must at least include the below information:
  • Include the contact details and full names of both parties.
  • List the property’s full and legal description.
  • Add any fixtures to the property, as this can also increase its value.
  • Detail what the property’s purchase price is. It must be one that both parties agree upon.
  • State any other contingencies. It includes if the buyer has to get financing or if the seller agrees to fix something on the property before the sale.
  • Mention the closing date, which in Ohio can take 30 to 45 days after you both sign the agreement.

• Further, below are terms or pieces of information that Ohio laws don’t require but are still commonly used in purchase agreements.
  • Noting down the seller and buyer’s financing
  • The earnest money deposit. In Ohio, it’s generally between 1% and 3% of the total price. It’s held in escrow and typically counts toward the final balance the buyer pays.
  • Inspection and survey reports
  • Property and title deed insurance

Required Disclosures

Besides the above legal terms, Ohio laws require two (2) disclosures. However, only one is always needed, as the other depends on the year the building was built.

• Residential Property Disclosure Form: It’s a form where sellers describe the property’s condition to the buyer. The seller should give it to the buyer before they sign the agreement. If the buyer doesn’t receive it even after signing the contract, they can rescind their offer within three (3) days.
• Lead-Based Paint Disclosure: This clause only applies if the buildings were built before 1978. The seller must inform the buyer about whether lead-based paint is present on the premises and the dangers of it.