A real estate contract is a legal document that outlines the terms and conditions of a property purchase. It is a great way to protect both the buyer and seller during the home buying process.
The most common type of real estate contract is the purchase agreement. It contains details about the involved parties, specifications of the property, payment terms and additional necessary contingencies.
Other types of contracts are more tailored to the specific type of property being purchased. These include property-specific purchase agreements, which are often used when buying a property outside the normal single-family market, such as a mobile home or piece of vacant land.
Typically, a real estate sales contract will include the names, current home addresses and contact information for both parties, as well as a section where they can record their signatures. It will also detail the date of closing and closing costs. The real estate contract will also outline property taxes for which the buyer is responsible.
Some of the most important factors that should be included in a real estate sale contract are the purchase price, buyer and seller information, dates of closing and closing costs and property taxes. It is also a good idea to list any home warranties that may be applicable.
The most important thing to remember when creating a real estate sale contract is that it should be in writing to be legally enforceable. This will help ensure that all the parties involved in the deal are on the same page with their expectations and to avoid any issues down the road.
A contract can be a very complex document, so it is vital to have the help of a lawyer on your side when it comes time to create one. They will have the knowledge and experience to create a contract that is effective for both sides of the transaction.
While money is generally the most common consideration in a real estate transaction, it is not always necessary for a contract to be valid. Other forms of consideration can be offered as well, such as significant material items or other instruments of value. For example, in one case a buyer offered up a boat in lieu of money!