Real estate contracts or purchase agreements contain legal terms like any other business agreement. As they are complicated, get them adequately explained to you.
If you’re new to the business or need to know what these terms mean because you’re buying a property, read on as this article will explain them thoroughly.
What are Real Estate Contracts or Purchase Agreements?
These contracts or agreements are valid, legal contracts that act as safeguards for everything related to the purchase to work in a way both parties (a seller and a buyer) have agreed. They serve as legal safeguards because, as is always the case, buying real estate involves a lot of money, and everyone, especially the buyer, needs to have assurances that everything will go according to plan and nothing will go wrong.
Once a contract or agreement is signed, both parties have assured legal rights and individual responsibilities they need to follow and fulfill.
However, the difficulty with these contracts is that they are often very complex and something that only a lawyer can understand.
As it’s quite easy to sign a piece of paper, but it’s next to impossible to break a contract without serious repercussions, so it’s crucial for you to understand what you’re signing. That’s why you must ask about anything in the agreement that you don’t comprehend. Ask as many questions as you need until you discern the entire deal. Only then should you sign.
Requirements for Validity
For a real estate contract or purchase agreement to be valid, some conditions need to be met:
● It must be in writing
● The purpose of the contract needs to be legal
● It needs to have both an adequately defined offer and an acceptance
● Things of value (money for property in most cases) must be exchanged within it
● Parties signing the contract must be legally competent to do so
Additional Things to Know
In most cases, it’s usually the buyer’s agent who creates these contracts. However, a real estate agent doesn’t have the right to draft an agreement entirely; they would have to practice law to do so. They typically are provided with a draft which they can alter and make additions or omissions.
We cannot stress enough how vital it is to consult a lawyer if there’s anything in the agreement of which you’re unsure. Lawyers are the ones with all the knowledge when it comes to such legal jargon.
Pay attention to the additional stipulations in a contract. They usually exist in custom contracts and can include things that may or may not strip you of some of the rights you typically have.
Carefully consider the time frames in the agreement and whether or not you will have funds available to fulfill the deal. Before signing a contract, it’s always essential to check if you can meet all the obligations that the deal creates for you.
These are all the essential details you need to know about real estate contracts and purchase agreements