Real Estate Purchase Contract

Real estate purchase contracts are the legally binding documents required for an individual to buy a piece of property.  A real estate purchase must be agreed to in writing, and the documents detailing the purchase are often notarized.  While many pieces of information might be included in a real estate purchase contract, there are certain items that must be included in writing, and these must be adhered to by both parties, in order for the contract to remain legally binding.

Important Contract Elements

Several important elements must be included on a real estate purchase agreement.  The parties, price of purchase, and location of the property are taken into account, along with the signatures of both parties.  While the owner him or herself might act as the broker, including their intent to sell in an open listing, oftentimes a broker is given that right.  An exclusive agency listing demonstrates the agreement made by the property owner to allow one agency the exclusive right to sell.  An exclusive right to sell provision contained in the contract allows one broker the sole authority to sell the property.  Sometimes an earnest money deposit, demonstrating one’s seriousness in the intent to purchase, is paid along with the purchase contract.

Common Problems

Several issues may arise with real estate purchase contracts.  For example, by signing the contract, both parties demonstrate that they have met, understood, and agreed upon the terms.  If one party feels taken advantage of due to unspecific language, he or she could sue.  Neither party may break the contract, or it is no longer legally binding, during or after the process.  Buyers or sellers may have to demonstrate in court that the problems that the misunderstandings were legitimate or that the terms of the contract are illegal in order to be released from the contract.

Finding Legal Help

Contacting a lawyer is often the best choice if you’re confused about the results of a legally binding contract.  A real estate lawyer or contract attorney will help you decide what, if any, action should be taken if there is a dispute.