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Real Estate Far Bar Agreement

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REAL ESTATE FAR BAR AGREEMENT

This Real Estate Far Bar Agreement ("Agreement") is entered into on between Seller Name: and Buyer Name: .

1. Property Identification

2. Purchase Price and Deposit

Purchase Price: $ . Buyer shall deposit earnest money in the amount of $ to Escrow Agent: , to be held in accordance with this Agreement.

3. Financing Contingency

This Agreement is accompanied by a financing contingency, and is not accompanied by a financing contingency. If applicable, Buyer shall seek loan approval in the amount of $ by .

4. Inspection and Due Diligence

Buyer shall have a period of days from the Effective Date to inspect the Property and deliver written notice of termination or objection to Seller. Inspection period expires on .

5. Closing and Possession

Possession shall be delivered to Buyer on subject to the rights of tenants and current leases disclosed in this Agreement.

6. Seller Representations and Disclosures

Seller represents that, to Seller's knowledge, the following statements are true as of the Effective Date:

Lead-based paint present: Yes No

Known mold or water intrusion: Yes No

Prior structural or fire damage: Yes No

7. Title, Taxes, and Closing Costs

Seller shall provide marketable title by general warranty deed or equivalent at closing. Title shall be conveyed free of liens except as disclosed. Title company:

Closing costs shall be allocated as follows: Seller pays for Seller's deed preparation and existing lien releases; Buyer pays lender and recording fees, except as otherwise agreed below.

8. Default and Remedies

If Buyer fails to close in breach of this Agreement, Seller may retain earnest money as liquidated damages or pursue specific performance and other remedies at law or equity. If Seller fails to close, Buyer may elect specific performance or terminate and recover earnest money and all reasonable costs.

9. Insurance; Risk of Loss

Risk of loss or damage to the Property shall remain with Seller until closing. Seller shall maintain ordinary course property insurance until closing. If substantial loss occurs before closing, Buyer may terminate or accept assignment of insurance proceeds at closing.

10. Miscellaneous

This Agreement constitutes the entire agreement between the parties concerning the Property and supersedes all prior negotiations. Amendments must be in writing signed by both parties. If any provision is held invalid, the remaining provisions remain effective.

11. Additional Terms Specific to Far Bar

Unless otherwise stated in writing, the sale of real property does not include the transfer of any alcoholic beverage license. Transfer or assignment of any license is the sole responsibility of the party obtaining such transfer and is subject to applicable regulatory approval.

Acknowledgment

Each party acknowledges receipt of a copy of this Agreement and warrants that the person executing this Agreement on behalf of the party is authorized to do so.

Buyer:

By:

Date:

Seller:

By:

Date:

Enter text✕

What the Real Estate Far Bar Agreement Is and when it's used

The Real Estate Far Bar Agreement is a written contract used in property transactions to set out rights, obligations, and allocation of costs between parties when a nonstandard condition or specialized provision applies to a conveyance or lease. It clarifies payment terms, scopes of responsibility, inspection and access rules, and recording or escrow instructions so parties and their agents have a single binding reference for the transaction.

Why this agreement matters for clear property transfers

A well-drafted Real Estate Far Bar Agreement reduces ambiguity about responsibilities, minimizes recording or escrow delays, and creates evidence of consent and deal terms. Clear allocation of inspection rights, payment schedules, and default remedies helps reduce post-closing disputes and supports enforceability in later proceedings under ESIGN/UETA frameworks.

Why this agreement matters for clear property transfers

Who typically completes and relies on this agreement

Common users include listing agents, buyer brokers, property managers, title companies, and counsel who handle specialized conveyances or conditional lease terms.

  • Listing agents and sellers — prepare and confirm disclosure of obligations and transfer conditions.
  • Buyers and buyer agents — verify access, inspection windows, and cure periods before signing.
  • Title/escrow officers — ensure the agreement matches recording and escrow instructions for closing.

Use by the correct authorized representative and consistent signatory practice reduces risk and speeds downstream recording or escrow actions.

Primary signers and responsible parties

Seller / Listing Agent

The seller or listing agent signs to confirm property condition disclosures, any exceptions to standard transfer warranties, and the seller's obligations for repairs or credits. This signature binds the seller to the payment schedule and access terms described in the agreement.

Buyer / Buyer Agent

The buyer or buyer's agent signs to accept the stated limitations, inspection rights, and remedies. The buyer's signature establishes receipt of disclosures and consent to the effective date, enabling title and escrow to proceed toward closing or recording.

Core elements to include in a professional agreement

A complete Real Estate Far Bar Agreement contains specific provisions that control performance, allocation of costs, and dispute resolution; include these sections to minimize ambiguity and support enforceability.

Parties

Full legal names and entity types for all parties, including any trust or corporate identifiers, to ensure accurate recording and TIN matching where necessary.

Property Description

A precise legal description or parcel identifier, street address, and any exhibit that defines boundaries or easements to avoid recording rejections.

Scope and Conditions

Clear statement of the special condition or 'far bar' clause, the actions required to satisfy it, and any timelines or milestones for performance.

Payment and Consideration

Exact dollar amounts, timing for payments, escrow instructions, and any conditional credits or holdbacks tied to inspection or completion.

Defaults and Remedies

Defined cure periods, notice procedures, liquidated damages or specific performance options, and allocation of attorney fees for enforcement.

Recording and Delivery

Which party handles recording, who pays recording fees, and the delivery method for recorded instruments or escrow releases.

Step-by-step: complete and execute the agreement

Follow these steps in order to prepare, execute, and route the agreement for recording and closing.

  • 01
    Prepare document: Populate legal names, description, and payment terms accurately.
  • 02
    Review parties: Confirm authority and entity formation matches signature blocks.
  • 03
    Sign and date: All authorized signers sign, date, and initial required pages.
  • 04
    File/record: Deliver to escrow or county recorder per instructions.

How to configure an online workflow for this agreement

Set up fields, authentication, and storage options before sending to reduce signer friction and ensure compliance with retention rules.

Field Placement Signature fields | Signature, date, initials
Authentication Authentication | Email link, SMS code, or KBA
Conditional Logic Conditional fields | Show based on checkbox responses
Notifications Notifications | Reminders and CC to escrow/title
Storage Format Storage | PDF/A with audit trail

Digital signing and technical delivery options

Choose a platform that supports required authentication, audit trails, and output formats compatible with title and escrow workflows.

  • Integrations: Salesforce, NetSuite, Microsoft 365
  • Formats: PDF, DOCX, HTML
  • Security: AES-256 at rest, TLS 1.2/1.3

Ensure the chosen provider can export signed PDFs with embedded audit trails and configure retention to meet regulatory and title company requirements.

Typical routing from draft to recorded instrument

A consistent routing sequence reduces errors: prepare, sign, verify, escrow/title review, record, and distribute final copies to all parties.

  • Upload: Sender uploads final draft for fields and signatures.
  • Sign: Parties receive link, authenticate, and sign.
  • Review: Title or escrow reviews and clears for recording.
  • Record: Instrument filed with county recorder; recorded copy returned.

Key timing considerations and deadlines

Track dates in the agreement precisely; effective dates, cure periods, inspection windows, and recording timeframes affect priority and enforceability.

Effective Date:

Date when obligations begin; use MM/DD/YYYY.

Inspection Window:

Number of days for buyer inspections per clause.

Cure Period:

Time allowed to remedy default after notice.

Recording Timeline:

Submit to recorder per escrow instructions immediately after closing.

Escrow Release:

Conditions and date for funds or instrument release.

Common mistakes that delay closing or recording

  • Using informal or abbreviated party names that do not match title documents causes recorder or title exceptions and delays.
  • Leaving key fields blank, such as legal description or effective date, can void parts of the instrument or require re-execution.
  • Failing to confirm signatory authority for entities leads to later challenges and may require ratification or court involvement.
  • Sending unsigned or partially signed copies to escrow without an audit trail prevents proper acceptance and may halt recording.

Consequences of incorrect or incomplete agreements

Recording Rejection: Delayed priority or rejection
Title Exceptions: Unclear ownership claims
Tax Reporting: Incorrect 1099 triggering penalties
Contract Disputes: Increased litigation risk
Escrow Delays: Holdbacks or missed close dates
Notary Issues: Improper notarization invalidates filing

eSignature provider comparison for executing the agreement

Pricing and feature availability vary by vendor; signNow is listed first and comparisons show common capabilities relevant to real estate execution and recordkeeping.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-world examples of similar agreements in action

These case summaries illustrate how the agreement is used and the practical outcomes when properly executed.

Martin Properties — Tim Martin

Tim Martin used a specialized transfer addendum when selling a multi-tenant property to clarify tenant cure responsibilities.

  • The addendum tied escrow holdback to repair completion within 60 days.
  • The clear milestones and escrow instructions prevented post-closing disputes and allowed title to issue without exceptions.

Optica Ventures — Brian Fitzgibbons

Optica added a conditional access clause for offsite improvements to a commercial parcel.

  • The clause specified inspection windows and bond amounts.
  • By documenting access and remedy steps, the seller and buyer avoided litigation and achieved a timely recorded release.

FAQs and troubleshooting for common signing and filing issues

Answers to frequent questions about electronic signing, notarization, recording, and corrections when completing the agreement.


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