Alabama Residential Purchase Agreement

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An Alabama residential purchase agreement is a legally binding contract between a buyer and seller that outlines the terms of a residential property transaction. Key clauses include the purchase price, closing date, and any conditions that must be met for the sale to proceed.

Typically, the buyer provides an earnest money deposit to demonstrate good faith. The document ensures both parties agree on the financing terms, property condition, and any inspections or repairs required before closing. Once all conditions are satisfied and the agreed-upon price is finalized, the transaction is completed, and ownership of the property is transferred.

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State Laws

• Buyer Beware: In Alabama, the “caveat emptor” principle applies, meaning it is the buyer’s responsibility to identify any issues with the property. The seller is not legally required to disclose defects on the premises. [1] However, there are three exceptions to this rule:
  • Specific Questions: The seller cannot provide false information when the buyer asks any property-related questions.
  • Health Hazards: Sellers must inform buyers about any property issues that could pose health risks.
  • Fiduciary Relationship: When a fiduciary relationship exists between the buyer and seller, the latter is obligated to disclose all relevant information.

  Required Seller Disclosures

  

  Lead-Based Paint Disclosure

  For homes built before 1978, federal law (42 U.S. Code § 4852d) requires sellers to disclose any known lead hazards. This information can be found at the County’s Revenue Office.

  

  Property Disclosure Statement

  While not mandatory, it is recommended that sellers provide this document to inform buyers of important property details, including any safety or value concerns.

  Do Sellers in Alabama Have to Disclose Property Defects?

  No, Alabama does not require real estate sellers to disclose any material defects due to the “caveat emptor” (buyer beware) principle. If a buyer fails to conduct a proper examination, they may not have legal recourse to reverse the transaction.

  While sellers are not required to disclose material defects, they may be liable for damages or reversal of the transaction if they actively conceal latent defects or make material misrepresentations amounting to fraud.

  View Sources

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  1. Ala. Code § 6-9-142. https://casetext.com/statute/code-of-alabama/title-6-civil-practice/chapter-9-judgments/article-5-levy-sale-and-return/division-3-conveyance/section-6-9-142-caveat-emptor-when-officer-personally-bound
  2. Ala. Code § 6-5-102. https://casetext.com/statute/code-of-alabama/title-6-civil-practice/chapter-5-actions/article-8-fraud-misrepresentation-and-deceit/section-6-5-102-suppression-of-material-facts
  3. Moore v. Prudential Residential Services Ltd. Partnership, 849 So. 2d 914 (Ala. 2002). https://casetext.com/case/moore-v-prudential-residential-svcs

  Alabama Residential Purchase Agreement Template" width="240" height="310" />

  Create Your Alabama Residential Purchase Agreement in Minutes!