Purchase price

Price paid for a parcel depends on many factors including the aggregate purchase price, mortgages being assumed, the amount of the deposit or earnest money, whether the deposit is held in escrow and, if so, the name of the escrow agent; any purchase money financing provided by seller; the amount of financing on the property to which the buyer is taking title; and the portion of the purchase price due at the closing. If the purchase price is not a specific amount but is based on a formula that depends on other factors, the formula and the variable must be specified to avoid any confusion. Likewise, the contract should specify if the purchase price is subject to adjustment.