Real Estate Contracts

They’re made to safeguard all parties. They serve as the base for legal action that can be taken if one of the parties fails to meet the contract’s terms. On the other hand, the laws regulating real estate contracts can differ from state to state. As a result, it’s a good idea to consult an attorney before signing something.

Types of Real Estate Contracts

Based on the various types of real estate transactions, here are four common real estate contracts you should know:

Lease Agreement

A lease agreement is a real estate agreement that binds a tenant and a landlord to a house. The landlord offers to let the tenant live in their property for a fixed monthly fee. The lease contains essential clauses such as the security deposit, service cost, and rent sum. The lease agreement should include all relevant items to avoid any court conflicts.

Contract for Real Estate Assignment

This type of real estate assignment is commonly used in a wholesale strategy to encourage homeowners to sell their property to buyers. When a landowner agrees to sell the property’s rights to an investor, all parties sign a document committing to the potential sale.

The contract allows a real estate owner to buy a house, which the investor will sell to another buyer. The end buyer will pay a small assignment fee to the investor who will buy the property from the owner.

Contract for Real Estate Assignment

It’s important to remember that a real estate assignment contract does not grant the developers ownership of the land. The contract’s assignment would also be absent from the title chain.

Purchase Agreement

This form of real estate contract is the most common. A purchasing agreement (a sales contract) is a legally binding agreement between two parties (a property buyer and a property seller) to transfer ownership of a specific property. This contract lays out the terms of a property’s sale.

There are three distinct types of purchase agreements:

• Purchase Agreement (General). A simplified version of the purchase arrangement between the state and the association is commonly used when purchasing a home without a real estate agent’s assistance.

• Purchase Arrangement Between the Association and State. This is a common deal between a buyer and a seller. Many states and real estate associations have such agreements to direct their real estate transactions.

• Purchase Arrangement for a Particular Property. This type of purchase agreement is commonly used when purchasing properties, not in the single-family paradigm. 

Real Estate Attorney Near Me

You’ll almost certainly sign a real estate contract if you’re trying to buy your first property or conduct some other transactions. In real estate, there are various arrangements used by both novice and seasoned buyers. Each form of agreement has its own set of uses and specifications.

As a result, having a good understanding of these real estate contracts will help you navigate the real estate world more easily. Regarding the fine print, you may need a real estate attorney familiar with these transactions. Contact Attorneys Real Estate Group online; we look forward to assisting you.