A real estate contract is an agreement between the buyers and sellers of a parcel of real estate. In some states the contract is prepared by an attorney, and in some states the blank contract might be prepared by the state's Realtor Association. Or, it could be a form that you buy in an office supply store. Yet, in real estate school we are taught that a sales contract can be written on the back of a napkin. There are certain elements that should be included in a real estate sales contract.
Come to an agreement on the terms and sales price. The sales price and terms should be included in the real estate sales contract.
Check with the county for a legal description of the property. The legal description of the parcel of real estate being conveyed should be included in the real estate sales contract.
Agree to the title and type of deed that the seller will be delivering to the buyer at close. Included in the sales contract should be an explanation of the kind and condition of title, along with the from of the deed that the buyer will be receiving.
Give proof or evidence of the title. In the contract explain who will provide this information, what type of evidence will be required to prove the seller has the right to convey title, and what will happen should there prove to be a defect in the title.
Include a statement in the sales contract listing all the conditions and any contingencies between the buyers and sellers.
- B. Holmes