A buy-sell agreement is an agreement between the owners of the business for purchase of each others interest in the business. Such an agreement will spell out the terms governing sale of company stock to an outsider and thus protect control of the company. It can be triggered in the event of the owner's death, disability, retirement, withdrawal from the business or other events. Life insurance owned by the corporation is often used to provide the funds to purchase the shares of a closely held company if one of the owners dies.
The time to prevent disputes is before they occur. Experience proves that owners anxieties created in dealing with one another are inversely proportional to the effort they spend addressing business problems in the event that they should happen. Dealing with these contingencies before they manifest themselves is the secret to a harmonious business relationship with other owners, Use the checklist below to determine areas where you may need assistance.
Houston Texas Checklist — Buy/Sell Agreement— - Contingencies When it comes to buying or selling real estate in Houston, Texas, having a checklist of essential items to include in the buy/sell agreement is crucial. The buy/sell agreement serves as a legally binding contract between the buyer and seller, outlining the terms and conditions of the real estate transaction. Additionally, including contingencies in the agreement helps protect both parties and ensures a smooth process. Here is a detailed description of what to consider when creating a Houston Texas Checklist for Buy/Sell Agreements, specifically focusing on contingencies. 1. Financing Contingency: One essential contingency to include in the buy/sell agreement is a financing contingency. This clause protects the buyer, stating that the purchase is subject to the buyer obtaining satisfactory financing within a specified period. If the buyer fails to secure financing within the given timeframe, this contingency allows them to back out of the transaction without any penalties. 2. Inspection Contingency: Another important contingency in a Houston Texas buy/sell agreement checklist is an inspection contingency. This provision allows the buyer to conduct a thorough inspection of the property within a specific period. It ensures that the buyer can identify any potential issues or defects and negotiate repairs, credits, or price adjustments with the seller. If the inspection reveals significant problems that the buyer is not willing to address or resolve, they can terminate the contract while getting their earnest money deposit back. 3. Appraisal Contingency: Including an appraisal contingency is crucial when buying or selling property in Houston, Texas. This contingency provides an opportunity for the buyer to have a professional appraiser evaluate the property to determine its fair market value. If the appraisal comes in lower than the agreed-upon purchase price, the buyer can either renegotiate the price or terminate the contract. 4. Title Contingency: A title contingency protects both the buyer and seller by ensuring there are no title issues or liens on the property. This contingency gives the buyer time to review the property's title history and allows for any necessary corrective actions to be taken before finalizing the purchase. If any unresolved title issues arise that affect the buyer's ability to own the property free and clear, they can opt out of the agreement. 5. Home Sale Contingency: For homeowners looking to sell their current property before buying a new one, a home sale contingency is essential. This clause allows the buyer to submit an offer on a new property, with the purchase contingent on selling their current home within a specified period. If the buyer fails to sell their existing property, they can typically withdraw from the agreement with no legal repercussions. By including these contingencies in a Houston Texas buy/sell agreement, both buyers and sellers can protect their interests and minimize potential risks. It is important to have a thorough understanding of the specific contingencies mentioned above and ensure they are tailored to meet the unique requirements of the Houston real estate market. Note: While the contingencies listed above are commonly included in buy/sell agreements in Houston, Texas, consulting with a real estate attorney or professional is highly recommended to fully understand the legal implications and ensure compliance with applicable laws and regulations.Houston Texas Checklist — Buy/Sell Agreement— - Contingencies When it comes to buying or selling real estate in Houston, Texas, having a checklist of essential items to include in the buy/sell agreement is crucial. The buy/sell agreement serves as a legally binding contract between the buyer and seller, outlining the terms and conditions of the real estate transaction. Additionally, including contingencies in the agreement helps protect both parties and ensures a smooth process. Here is a detailed description of what to consider when creating a Houston Texas Checklist for Buy/Sell Agreements, specifically focusing on contingencies. 1. Financing Contingency: One essential contingency to include in the buy/sell agreement is a financing contingency. This clause protects the buyer, stating that the purchase is subject to the buyer obtaining satisfactory financing within a specified period. If the buyer fails to secure financing within the given timeframe, this contingency allows them to back out of the transaction without any penalties. 2. Inspection Contingency: Another important contingency in a Houston Texas buy/sell agreement checklist is an inspection contingency. This provision allows the buyer to conduct a thorough inspection of the property within a specific period. It ensures that the buyer can identify any potential issues or defects and negotiate repairs, credits, or price adjustments with the seller. If the inspection reveals significant problems that the buyer is not willing to address or resolve, they can terminate the contract while getting their earnest money deposit back. 3. Appraisal Contingency: Including an appraisal contingency is crucial when buying or selling property in Houston, Texas. This contingency provides an opportunity for the buyer to have a professional appraiser evaluate the property to determine its fair market value. If the appraisal comes in lower than the agreed-upon purchase price, the buyer can either renegotiate the price or terminate the contract. 4. Title Contingency: A title contingency protects both the buyer and seller by ensuring there are no title issues or liens on the property. This contingency gives the buyer time to review the property's title history and allows for any necessary corrective actions to be taken before finalizing the purchase. If any unresolved title issues arise that affect the buyer's ability to own the property free and clear, they can opt out of the agreement. 5. Home Sale Contingency: For homeowners looking to sell their current property before buying a new one, a home sale contingency is essential. This clause allows the buyer to submit an offer on a new property, with the purchase contingent on selling their current home within a specified period. If the buyer fails to sell their existing property, they can typically withdraw from the agreement with no legal repercussions. By including these contingencies in a Houston Texas buy/sell agreement, both buyers and sellers can protect their interests and minimize potential risks. It is important to have a thorough understanding of the specific contingencies mentioned above and ensure they are tailored to meet the unique requirements of the Houston real estate market. Note: While the contingencies listed above are commonly included in buy/sell agreements in Houston, Texas, consulting with a real estate attorney or professional is highly recommended to fully understand the legal implications and ensure compliance with applicable laws and regulations.
