What is a Real Estate Agreement?

A real estate agreement (contract) is a formal written agreement between two parties for the purchase, rental, investment, or joint venture of a real estate property. Such property may include apartments, condominiums, residential house (house contract), and buildings. The entity usually utilizing real estate agreement documents is a real estate agency company.

How to Write a Real Estate Agreement?

A real estate agreement is not a document that should be taken lightly, even with the help of high-quality agreement templates (although they're truly helpful). Still, you need to know the basics of how it should be done properly due to the fact that they're highly confidential documents. For that reason, we have gathered a few steps in writing a real estate agreement.

1. Elaborate Buyer/Investor/Tenant and Seller Details

It's crucial to include the complete details of both the parties so that it'll be easier to identify the entities involved in the agreement. Plus it'll be much easier to locate and contact them in case something significant arises concerning the contract agreement. The details of both parties must include their complete names with titles, mailing addresses, contact numbers, and email addresses.

2. Provide Detailed Property Descriptions

This includes the complete address of the real estate property, as well as the land's legal description to precisely identify its location. However, this part of the agreement is mostly prepared by a licensed surveyor. It's usually presented in metes and bounds. Another description of the property that you should convey is its price. The price of the property must have legal supporting documents on how it came to a particular amount.

3. Define the Agreements Made

The settlements and agreements of the two parties are the most crucial section of the agreement. For that reason, it's important to define all of them. This usually includes how will the buyer pay for the property, how often should the payments be incurred, and how will the seller accept the payments.

4. Implement Contingencies

The purpose of contingencies is to compensate for the aftermath of possible disputes in the agreement. This is more important on the part of the seller. The usual dispute that occurs when it comes to real estate agreements is the buyer's failure to pay on time. A good contingency for that is to evict the buyer from the property and terminate the agreement. This is to avoid further financial damage on the side of the seller.

5. State the Possession Date

The importance of stating the possession date is for both parties to be aware of when the transfer of the property will officially occur. The possession date is also the exact date that the buyer will officially own the property.

Here in Template.net pro, we have a variety of simple and printable real estate agreement templates that might be of use for you, especially if you're a real estate agent or seller. We have the Land Contract Agreement Template, the Residential Lease Agreement Template, the Apartment Lease Agreement Template, and many more.