Lesson 7: Purchase Agreements

Question 1

liquidated damages clause

Answer 1

“The parties are required to initial the liquidated damages clause in a purchase agreement:
if the buyer’s deposit exceeds 3% of the sales price
to show that they were aware of the provision and consented to it
to provide that the selling broker can hold the good faith deposit check uncashed until the seller accepts the offer
to allow the seller to choose what remedy to pursue in the event that the buyer defaults”

Question 2

integration clause

Answer 2

In addition, section 29 states that the purchase agreement contains the entire agreement between the buyer and the seller, and that any other previous agreements are no longer valid.

This type of provision is called an integration clause.

Any amendments to the contract must be in writing and signed by both parties to be valid.