Alabama Real Estate Purchase Agreement Template

Buyer Beware – It is the buyer’s responsibility to “look for himself as to the title and soundness of all property” or commonly known as “caveat emptor.” A buyer may choose to require the seller to complete a property disclosure statement attesting to structural defects or repairs needed (§ 6-9-142).

Exceptions

• Material Defects: A seller must disclose “material defects” that are not readily observable to the buyer (§ 6-5-102).
• Fraudulent Misrepresentations: A seller or their listing agent may not misrepresent the property and suppress defects related to the property (Moore v. Prudential Residential Services (2002)).

1.) Lead-Based Paint Disclosure: Per federal law, the seller is required to complete and authorize. Afterward, the seller will need to give the lead-based disclosure to the buyer (42 U.S. Code § 4852d).

2.) Real Estate Consumers Agency and Disclosure Act (RECAD): Must be provided by a licensed real estate agent to any potential client or customer to describe their relationship (§ 34-27-82).

3.) New Construction Warranty: For new construction only, requires the builder to give the warranty of “implied warranty of fitness and habitability” (Cochran v. Keeton (1971)). The buyer has the right to bring a case against the builder within 7 years (§ 6-5-221(a)).

1.) Property Disclosure Statement: Common to complete by the seller, even though it’s not required, it lists any known material defects on the property.