How to Create a Real Estate Contract?
A real estate contract has all the agreements established between the involved parties. It contains the description of the parties involved, details of the property or asset, price of sale or purchase, legal purposes, terms and conditions, considerations, and signatures. Additionally, some types of real estate contracts include real estates business plans such as real estate assignment contracts, purchase agreements, and lease agreements.
The DDC Lawfirm argues that verbal agreements between a seller and buyer aren't enough. If they don't record them on paper, it can cause disputes. That's why it's crucial to use a real estate contract for every transaction to keep everything in order.
Begin documenting your moves in your business through real estate contracts. To help you create one on your own, check out the tips below.
1. Identify the Parties Involved
Always begin your real estate agreement with the parties involved. Write the names of the seller and the buyer. The names will testify who owns and shall adhere to the contract.
2. Describe the Property or Asset
Whether it is a residential or commercial property, you must include the details of its boundaries, location, and size in your real estate firm. You should also include the exact address and the included personal properties. These details guard the seller against any problem once the buyer decides to purchase the property.
3. Write the Considerations
The considerations in your sample contract can be monetary or an oath to fulfill an act for the other party. These points should be for the benefit of the other or both parties. The consideration can be a buyer who promises to pay the full real estate budget of the property before the closing date.
4. Provide Realistic Terms
Every term and condition should be realistic, logical, and practical. Both parties should agree with the terms regarding the home real estate. Write each term deliberately and be specific about each of them. If there's vagueness in the private contract, a possibility of dispute can happen at any time.
5. Hire an Attorney
It's always best to seek legal opinion first before signing the agency contract. Let your attorney and legal experts read the document to check for any error or revision for improvement.
Do real estate contracts need to be notarized?
You don't need to notarize every real estate contract. For instance, a real estate purchase agreement doesn't have to be notarized while a real property deed has to be.
Can you buy a house without using an estate agent?
Although real estate agents can make your work in buying a house easier, sometimes you won't need them. You can buy a house without a real estate agent, and it can save you money, too.
What can make a contract void?
Although most people don't want it to happen, contracts can be void for different reasons. Below are some of them, according to Legal Match:
- The contract is unrealistic and unattainable.
- The contract doesn't benefit both parties but benefits only one.
- The contract has a party that is unfit to be part of the agreement.
- The contract has content that opposes a public policy.
Can a seller ignore an offer?
The seller has the right to ignore or reject an offer, and it's not disrespectful or against the law.
How long is a real estate contract valid?
A real estate contract's validity can reach up to three, six, or twelve months. Usually, the parties can decide when it should last.