Turnkey Real Estate Agreement
A Turnkey Real Estate Agreement is a contract that outlines the terms under which a property is sold in a fully renovated, ready-to-use state. The term "turnkey" indicates that the buyer can simply "turn the key" and immediately occupy or rent the property without needing any additional renovations or repairs.
Such agreements typically specify the condition of the property, the scope of renovations already completed, and any warranties or guarantees regarding the work performed. These agreements may also detail the purchase price, payment terms, and any contingencies that must be met before the sale can be finalized.
For example, a Turnkey Real Estate Agreement might involve a seller who has recently renovated a residential property, installing new appliances and completing necessary repairs. The buyer, seeking to avoid the hassle of renovation, agrees to purchase the property as it stands, relying on the seller’s representations about its condition.
This type of agreement is particularly popular among investors looking for rental properties, as it minimizes the time and effort required to prepare a property for tenants.
« Back to Glossary Index