Real Estate Contract – What is It?

What is a real estate contract? Many people are signing this contract without knowing what exactly this contract is. In general, this contract is a document used to state the agreement to transfer the ownership of current estate user to the estate buyer in the future. Note that the ownership is not transferred immediately with this contract but it only contains the details of the transfer together with the terms and condition agreed by both parties. In order for contract to be valid, there are certain requirements that need to be fulfilled. All the requirements will be clearly listed in this article.

The first basic requirement is both the seller and buyer needs to be at least 18 years in age. If both parties are at least 18 years old, then both of them must agree on the terms and condition of the contract. A meeting will be held and the contract will be valid if the buyer accepts the terms and condition offered by the seller. The next step is to make sure that the contract made is in terms of black and white. In other words, you have to document it. Some people said it is valid to have a verbal contract. This is true but not advisable as when either party wishes to breach the contract, he or she can just do it without being penalized.

After documenting the contract, legalize the contract. By doing so, this contract will be valid and recognized and either party cannot do things that do not comply with the contract. The consequence of not complying with the terms and condition will be fine or even being locked behind the bars. You must then identify the property just to make the contract being more specific. The very last requirement of a valid contract is signature. Contracts are never valid without signatures. Signature is a symbol to represent your agreement. By following all these steps, you will have a legal and official real estate contract.