Define Sub Agreement of Sale
A sub agreement of sale is a legal document that outlines the specifics of a secondary sale transaction between two parties involved in an initial agreement of sale. In other words, it is an additional contract that is created between the buyer and seller to modify the original sale agreement.
Sub agreements of sale are typically employed in situations where the primary purchaser of the property is unable to complete the purchase or decides to resell the property to a third party. The sub agreement allows for the transfer of the primary agreement`s rights and obligations to the new buyer, while still acknowledging the original sale agreement.
The sub agreement of sale includes vital information related to the new buyer, such as the purchase price, payment terms, and legal description of the property. Additionally, it may contain other provisions that are required by the primary agreement of sale, such as warranties, representations, and indemnification clauses.
Sub agreements of sale are subject to various legal requirements and must be created in compliance with relevant laws. As such, it is essential to consult with a legal professional when drafting this document to ensure that it adheres to all legal requirements and is enforceable in a court of law.
In summary, a sub agreement of sale is a crucial legal document that allows for the transfer of an initial sale agreement to a secondary buyer. It is essential to ensure that all legal requirements are met when drafting this document to avoid any potential legal disputes. If you are involved in a sub agreement of sale, it is recommended that you seek the advice and guidance of a legal professional to ensure that your rights and interests are protected.