Real Estate Contracts

Real Estate contracts come in a variety of forms. There are real estate contracts for the purchase of property, and real estate contracts for the rental or lease of property. There are even real estate contracts for Freehold properties, which is the most complete ownership one can have. Normally a real estate contract is between two parties who agree to the terms set forth in the contract and the contract is legally enforceable.

Most countries recognize real estate contracts only if they are in writing. Verbal contracts do not stand up in a court of law, so making sure the real estate contract is written and enforceable (legal) is extremely important. Several factors must be included in a real estate contract.

First, the parties involved it the sale must be named. These people are typically referred to as the 'principles' in the sale. The address and legal description of the property must also be identified and recorded. Next, the agreed upon price of the property must be included and then the real estate contract must be signed. Signing the document is verifiable proof that the parties have not been forced into the agreement.

As with any legal document, it can be voided if the contract includes anything illegal. If either of the parties is deemed unfit due to mental impairment or under the influence of drugs, the contract can be voided as well. Minors under the age of 18 in the United States also are not allowed to enter into legal contracts and by doing so will void the document. Notarization is the process by which the parties sign the legally binding real estate contract in front of a notary public. This act is another way of ensuring that the principles signing the document are doing so of free will.

Aside from the actual purchasing or renting of property, there are other types of real estate contracts such as when a potential buyer makes and offer and the prospective seller agrees by accepting the offer. These contracts must also be in writing to be legally enforceable and both principles must sign the document. The person making the offer is normally the party that writes up the contract and then the seller can either accept the offer by signing it, or reject it by sending it back unsigned. The prospective seller can also make a counteroffer to the buyer and the buyer can decide to accept or not. There is normally an expiration date on each offer and counteroffer proposed.

Denver Real Estate