Real Estate Contract Forms
A real estate contract is a contract for the purchase/sale, exchange, or other conveyance of real estate between parties
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A real estate contract is a contract for the purchase/sale, exchange, or other conveyance of real estate between parties. Freehold ("More permanent") conveyances of real estate are covered by real estate contracts, including conveying fee simple title, life estates, remainder estates, and freehold easements. Real estate contracts are typically bilateral contracts (I. e., agreed to by two parties) and should have the legal requirements specified by contract law in general and should also be in writing to be enforceable. The real estate sales agreement contains the complete agreement between a buyer of a parcel of real estate and the seller. Depending on the area, this agreement may be know as an offer to purchase, a contract of purchase and sale, a purchase agreement, an earnest money agreement, or a deposit receipt. Whatever the contract is called, it is an offer to purchase real estate as soon as it has been prepared and signed by the purchaser. If the document is accepted and signed by the seller, it becomes a contract of sale. This transformation is called ripening. The contract of sale is the most important document in the sale of real estate. It establishes the legal rights and obligations of the buyer and seller. In effect, it dictates the contents of the deed. |
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| Individual Real Estate Forms |
The Basic Components of a Real Estate ContractSection 1: Buyer's and Seller's name and address. This section should include contact information about both the buyer and seller. Section 2: Legal Description of the Property. This section should include the property's common address (street address) and the legal description. Most states use the Rectangular (or government) survey along with the lot, block, and section. Some states still use the Metes and Bounds legal description. If a survey of the property will be done add a statement of that fact in this section and make sure to note who will be paying for it. In this section you should also list the items that will and will not be included in the sale of the property. Section 3: Purchase Price. This section should include the purchase price and how the buyer will be paying for the property. Any contingencies pertaining to financing should also be included in this section. If an appraisal is to be done refer to it in this section and be sure to note who will be responsible for payment. Section 4: Possession. Otherwise know as "closing" this section establishes the date when the buyer will take physical possession of the property. Section 5: Contingencies. This section should list the contingencies of both the buyer and seller. It is common for the contract to be contingent upon such things as inspections, surveys, or even the buyer or seller completing another transaction. Section 6: Inspections. If the buyer is requesting any inspections they should be addressed in this section. Common inspections include termite, complete home, lead based paint, radon, etc. Section 7: Seller's Warranties and Representations. This section should cover how the seller plans to convey title to the buyer. Also include whether or not the seller will be providing a title policy to the buyer. Section 8: Walk Through Inspection. Before "closing", buyer may, upon reasonable notice and at a reasonable time, conduct a "walk through" inspection of the property. In order to be valid and enforceable the contract must be in writing and singed by the buyers and all of the owners of the property. |