Download Alabama Purchase Agreement Form [PDF]

The Alabama purchase and sale agreement is mainly used for property sales, which include several factors that will have an impact on the transaction. For example, a real estate sale can depend on the sale of another property or have a complex financing program.

You should use the Alabama purchase agreement for selling any personal property of higher value. Usually, it should be any property with a market value of over $500.

Alabama Purchase and Sale Agreement Form

The Alabama purchase agreement is a legal document that outlines the main terms and conditions of the personal property transfer. The main parties to the Alabama purchase agreement are the seller and the buyer.

The parties can use this document to outline the property description, purchase price, terms of the purchase price payment, disclosures about the property condition, closing dates, and other transaction details.

The purchase agreement is mostly used for real estate transactions, although it can also be used for any other type of property sale, like a motor vehicle, boat, firearm, and more.

Purchase Agreement Alabama Laws & Requirements

Laws & Requirements

Buyer Beware. In Alabama, the buyer beware, or caveat emptor rule stipulates that the buyer purchases the property “as-is.” The seller is not required to make any disclosures about the property's condition or defects unless they can have an impact on the buyer’s health or if there is a fiduciary relationship between the seller and the buyer. (§ 6-9-142)
Known Defects. Another exception to the buyer beware rule is when the buyer asks a specific question about the property's condition. In that case, the seller must disclose all the relevant facts truthfully. (§ 6-5-102)

Purchase Agreement Required Disclosures in Alabama

Mandatory Disclosures

Lead-Based Paint Disclosure. According to federal law, the seller must disclose to the tenant if there is any lead-based paint hazard on the property. This disclosure is mandatory for any property built before 1978 or if there is a known presence of lead-based paint hazards.
Property Disclosure Statement. Although not mandatory in Alabama, the parties can arrange that the seller is obliged to disclose the condition of the property. This form will provide an overview of the property's condition and highlight any defects or hazards.

Common Types of Purchase Agreements in Alabama

Below, you can see the most common types of purchase agreements used in Alabama.

Types of Purchase Agreement

Residential real estate purchase agreement. Used for selling private residential real estate, like houses, apartments, garages, etc.
Commercial real estate purchase agreement. Used for selling office spaces, warehouses, and other types of real estate used for commercial purposes.
Vehicle purchase agreement. This document is also known as the “bill of sale” and is used to document the sale of the motor vehicle.
Business purchase agreement. It is used between the seller and the buyer to outline the details of the company purchase.
Land purchase agreement. Used for transferring agricultural, residential, commercial, or other kinds of land.
Stock purchase agreement. This type of purchase agreement is used for selling the stocks or shares of the company.

Purchase Agreement in Alabama FAQ

Yes, the Alabama purchase agreement is a legally binding document that the parties—the seller and the buyer—use to transfer ownership of a certain property.
Yes, the purchase price is an essential element of the Alabama purchase and sale agreement.
No, as long as both parties have signed the Alabama purchase agreement, it doesn’t have to be notarized. This is because the purchase agreement doesn’t transfer any rights; it just records the terms and conditions of the transfer.
As previously mentioned, the Alabama purchase agreement is a legally binding document. Therefore, once the seller signs it, they cannot back out of the agreement without compensating the buyer for the damages.