Yes. An ancient law known as the Statute of Frauds requires that transactions having to do with land must be in writing.

Do purchase agreements have to be recorded?

Deeds and land contracts are almost always recorded. This means that they are filed at the Register of Deed's office for the county in which the real estate is located. Purchase agreements are occasionally recorded. The purchase agreement should be executed with the formalities required for recording. If you are at all nervous about the transaction record the purchase agreement. For instance if you are the buyer what if the seller turns around and sells the property to someone else. If that second buyer didn't know about your agreement he or she would end up with the property. Youe would have a lawsuit against the seller. The purchase agreement only binds the other party to that document. Not until the document is recorded does it become notice to the world of your interest in the land.

What is a listing agreement?

A listing areement is a contact between the owner and a realtor or other person. The owner gives the realtor an exclusive or non exclusive right to sell the house. The owner promises to pay a commission or a flat fee to the realtor when the house is sold. The realtor promises to use his or her best efforts to sell the house. A listing agreement is usually for a period of six months but may be shorter or longer. Most listing agreements allow the realtor to collect a commission even after the listing period expires if the home is sold to someone who looked at the home during the period of the listing agreement. The owner can negotiate these items with the realtor.

What is a purchase agreement?

A purchase agreement is a written instrument that spells out the terms and conditions for the sale of a home or other parcel of real estate. Each the buyer and seller must sign the agreement for it to be effective. If a purchase agreement is presented to one party as on offer to buy or sell that party can make changes to the agreement. The changed agreement then becomes a counteroffer and must be signed by both parties.

What should a good purchase agreement have in it?

The purchase agreement should have:

• Names, addresses and marital status of the buyer and and seller
  
• Complete legal description of the property
  
• Should specify the type of financing to be arranged. Is the sale for cash, or mortgage? If a mortgage what percent of the price is being mortgaged. The bigger the down payment the easier it is to get a mortgage and the more palatable the offer will be to the seller. Is the mortgage to be a conventional mortgage or is it a special mortgage like Farm Home or MSHDA? Seller's prefer conventional as the others can sometimes cause delays. How long will the buyer have to secure a mortage?
  
• Who holds the earnest money deposit? What amount is it? What are the conditions for its return?
  
• What will be given as evidence of title? Will there be an abstract and title opinion? Will there be title insurance? Who pays for this?
  
• What if the title isn't clear or the buyer has some other objections to the title? Can the seller have time to correct the problem? How much time?
  
• When will the buyer be able to take possession of the premises?
  
• How will the property taxes and assessments be prorated and who will pay them? What will be the other closing costs and who will pay? Title insurance, abstract fee, attorney's fees, real estate transfer tax, unpaid assessments, prior year's taxes, unexpired lease term, etc?
  
• What if the buyer defaults? What are the seller's remedies? Can the seller get his or her attorney fees paid?
  
• What if the seller defaults? What are the buyer's remedies? Can the buyer get his or her attorney fees paid?
  
• What instruments are to be provided by the seller? Deeds, warranties, surveys, abstracts, insurance policies, etc?
• The purchase agreement is not to be modified except in writing and signed by both parties.
  
• The agreement should be binding on the heirs and assigns of each party. Certainly the buyer will still want the property even if the seller should die in the interim period. If the buyer dies the purchase agreement is often terminated but the documents should discuss this and what happens to the earnest money deposit.
  
• The purchase agreement should settle the risk of loss if the property is wholly or partially damaged during the pendency of the agreement.
  
• The purchase agreement should specify how long the offer or counteroffer is open before it automatically terminates.
  
• The purchase agreement should settle any respective rights and claims between the parties resulting from any known or unknown environmental condition
  
• Inspections of the home for water, sewer, termites, roof, major mechanical systems or other conditions should be discussed. How long does the buyer have to conduct inspections? What can be inspected? Who pays for the inspections? What may the seller do and how long does the seller have to remedy any problems that the inspection(s) disclose.
  
• The Michigan Seller Disclosure Act should be mentioned to confirm that it was complied with. (See separate topics at this site).
  
• If the home was constructed prior to 1978, Lead Warning Statements must be given. The buyer should receive: (a) Lead Warning Statement and Disclosure form; (b) Protect Your Family From Lead in Your Home pamphlet; (c) Questions and Answers pamphlet.
  
• If the Home is Not Part of Recorded PLAT the purchase agreement should discussion land division rights and the conveyance must contain the following languare, "This property may be located within the vicinity of farm land or a farm operation. Generally accepted agricultural and management practices which may generate noise, dust, odors, and other associated conditions may be used and are protected by the Michigan Right to Farm Act." Discuss the land division act with Herrinton, Menezes & Smathers or your attorney or it could be a costly mistake.
  
• What Personal Property is to be included in sale: Appliances, window treatments, garage door opener and remotes, water softenener, wood stove, refrigerator, stove, range, washer dryer, etc. List each item that is to be included in the purchase.
  
• Are there other utilities such as propane gas left in the tank that should be pro rated?
  
• Any other items that are specific to this transaction.

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Buyers and sellers are encouraged to look at the other real estate pages at this site. Of particular interest may be the checklist for buyers and sellers.

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I hope that some of your questions have been answered. Please don't hesitate to ask your attorney about any real estate questions you may have