The Agreement to Sell Personal Property is a formal document used in residential transactions to outline the sale of personal property that is not included in the real estate purchase agreement. This agreement serves to clarify the terms under which a buyer agrees to purchase specific items from a seller, ensuring both parties understand their rights and responsibilities. To facilitate this process, consider filling out the form by clicking the button below.
The Agreement Personal Property form is a critical document used in residential transactions where personal property is being sold separately from real estate. This form outlines the agreement between the Buyer and Seller, detailing the specific personal property being sold and the purchase price agreed upon. It is important to note that this agreement is made concurrently with the Real Estate Purchase Agreement, establishing a connection between the sale of personal property and the real estate transaction. At the closing, the Buyer is required to pay the Seller the agreed-upon price in cash or certified funds, while the Seller must provide a fully executed Bill of Sale. The form also clarifies that the Buyer accepts the personal property in its "AS IS" condition, acknowledging that the Seller makes no warranties regarding its state. Furthermore, the Seller certifies ownership free of liens, ensuring that the transaction is legitimate and secure. This document serves as the complete expression of the agreement, emphasizing that no oral agreements exist between the parties, and any amendments must be made in writing. Overall, the Agreement Personal Property form plays a significant role in facilitating clear and fair transactions in the sale of personal property during real estate dealings.
AGREEMENT TO SELL PERSONAL PROPERTY IN A RESIDENTIAL TRANSACTION
(for personal property not included in the real estate purchase agreement)
1.This Purchase Agreement for Personal Property (“Agreement”) is made by
(the “Buyer”), whose address is
to
(the “Seller”), whose address is
2.For good and valuable consideration, the receipt and sufficiency of which being hereby acknowledged, it is agreed between the Seller to sell and the Buyer to buy the following described personal property for a purchase price of
$
U.S. Dollars (“Personal Property Purchase Price”):
(“Personal Property”). If the space provided above is not sufficient, please see attached a list.
3. Real Property Purchase Agreement Identified. This Agreement is made concurrently with the Purchase and Sale Agreement for the sale of residential real property commonly known as
(the “Real Estate Purchase Agreement”).
4.Closing: At the closing (as that term is defined in the Real Estate Purchase Agreement), the Buyer shall pay the Seller the Personal Property Purchase Price in the form of cash or certified funds. At closing, the Seller shall deliver to the Buyer a fully executed Bill of Sale in the form attached hereto as Exhibit A. This Agreement is contingent upon the closing of the Real Estate Purchase Agreement.
5.Non-Merchant Transaction: It is understood that the parties hereto are not considered “merchants” under the provisions of the Michigan Uniform Commercial Code.
6.Condition of Personal Property: By closing this transaction, the Buyer agrees that the Seller has made no representations or warranties as to the condition of the Personal Property. The Buyer is purchasing the Personal Property in “AS IS” condition with all latent and patent defects. The Buyer has examined the Personal Property to Buyer’s satisfaction. Regardless of any terms in this Agreement or the Real Estate Purchase Agreement to the contrary, once the closing occurs, the Buyer is fully responsible for all defects and conditions of the Personal Property. The Seller hereby disclaims any and all warranties (express or implied) including any warranty of fitness for a particular purpose or warranty of merchantability related to the Personal Property. To the extent necessary, Seller shall deliver the original title for any Personal Property to the closing. Further, Seller represents that he/she owns the Personal Property free and clear of any and all liens, including any installment or secured loans, lay-away or lease-to- own plans, etc.
7.Merger: This writing is intended to be the complete expression of the agreement between the parties with respect to the Personal Property, and confirmation that there are no oral agreements existing between the parties relating to this transaction. This Agreement may be amended only in writing, signed by the parties and attached to this Agreement. The Personal Property purchased pursuant to this Agreement is in addition to and not in lieu of any personal property purchased pursuant to the Real Estate Purchase Agreement.
Sellers:
Date:
Buyers:
Filling out the Agreement Personal Property form is a straightforward process that requires attention to detail. This form is essential for documenting the sale of personal property that is not included in a real estate purchase agreement. Following the steps below will help ensure that all necessary information is accurately provided.
What is the purpose of the Agreement Personal Property form?
The Agreement Personal Property form is used in residential transactions to outline the sale of personal property that is not included in the real estate purchase agreement. This form establishes a clear understanding between the buyer and seller regarding the specific items being sold, the purchase price, and the terms of the sale. It ensures that both parties are aware of their rights and responsibilities regarding the personal property involved in the transaction.
What does "AS IS" condition mean in this agreement?
When the agreement states that the buyer is purchasing the personal property in "AS IS" condition, it means that the buyer accepts the items in their current state, without any warranties or guarantees from the seller. The seller does not make any representations about the condition of the property, and the buyer assumes all risks associated with any defects or issues that may exist. This clause emphasizes the importance of the buyer thoroughly inspecting the items before the purchase is finalized.
What happens at the closing of the transaction?
At the closing, the buyer is required to pay the seller the agreed-upon purchase price for the personal property, typically in cash or certified funds. In exchange, the seller must provide the buyer with a fully executed Bill of Sale, which serves as proof of the transaction. The closing is contingent upon the successful completion of the associated real estate purchase agreement, meaning that the sale of the personal property cannot proceed unless the real estate transaction is also finalized.
Can the Agreement Personal Property form be amended?
Filling out the Agreement Personal Property form can be straightforward, but many people make mistakes that can lead to complications. One common error is failing to provide complete and accurate addresses for both the Buyer and the Seller. This information is essential for clarity and communication. Ensure that all address fields are filled out correctly to avoid potential disputes.
Another mistake often made is neglecting to specify the Personal Property Purchase Price. This amount must be clearly stated to prevent misunderstandings later. Leaving this field blank or writing an ambiguous figure can create confusion during the transaction.
Many individuals also overlook the importance of identifying the real property associated with the transaction. Not referencing the Real Estate Purchase Agreement can lead to issues, especially if the personal property is contingent on that agreement. Always make sure to clearly identify the real estate involved.
Buyers frequently misunderstand the condition of the personal property being sold. It is crucial to acknowledge that the property is sold “AS IS.” Buyers should carefully inspect the property before closing. Failing to do so may result in unexpected liabilities after the transaction is complete.
Some people forget to include an attached list if the space provided for the description of personal property is insufficient. This can lead to disputes about what items were actually included in the sale. Always attach a detailed list if needed.
Another common error is not providing a fully executed Bill of Sale at closing. This document is vital for transferring ownership. Without it, the transaction may not be legally binding, leaving both parties vulnerable.
Buyers often fail to recognize that they are responsible for all defects once the closing occurs. This point is critical and should not be underestimated. Understanding this responsibility can prevent future disputes over the condition of the personal property.
Some sellers neglect to confirm that they own the personal property free and clear of liens. This can lead to serious legal issues if undisclosed debts arise after the sale. Sellers must ensure that their property is free of any encumbrances before finalizing the agreement.
It is also common for individuals to overlook the merger clause, which states that the written agreement is the complete expression of the deal. Any oral agreements should be documented in writing to avoid misunderstandings. Failure to do this can result in disputes over terms that were not formally agreed upon.
Lastly, many people forget to sign and date the agreement properly. Incomplete signatures can render the document invalid, leading to complications in the transaction process. Ensure that all parties sign and date the agreement to confirm their acceptance of the terms.
The Agreement to Sell Personal Property is often accompanied by several other important documents. Each of these documents serves a specific purpose in the transaction, ensuring clarity and legal compliance. Below is a list of commonly used forms along with brief descriptions of their functions.
These documents collectively support the transaction, ensuring that both the buyer and seller have a clear understanding of their rights and obligations. Proper use of these forms can help prevent misunderstandings and legal disputes in the future.
When filling out the Agreement Personal Property form, follow these guidelines to ensure accuracy and clarity.
Misconceptions about the Agreement Personal Property form can lead to confusion during a real estate transaction. Below are ten common misconceptions, along with clarifications for each.
When filling out and using the Agreement Personal Property form, keep these key points in mind:
By following these guidelines, you can ensure a smooth transaction for both the Buyer and the Seller.