Real Estate Contract: 6 Requisites that Will Seal Every Business Transaction

A contract is a must-have in any business. In the real estate industry, a real estate contract is of great importance because it specifies each detail – from the simplest to the most complex aspects – of the business. Not knowing all of the details can be dangerous, which is why every real estate business owner and real estate virtual assistant should fully understand what the contract is all about and how important it is in the real estate market.

Defining a Real Estate Contract

A real estate contract is made up of a mutual agreement between the buyer and seller, and is based upon principles and laws of the real estate industry. It includes all the details pertaining to the transaction. The usual form is known as a bilateral real estate contract, that is, the buyer agrees to buy and the seller agrees to sell.

Basic Legal Ins and Outs Of A Real Estate Contract

First of all, there should be a mutual agreement between two parties, the buyer and the seller, and they should collaborate to meet each others’ terms.

Secondly, everything that is agreed should be put into writing. If the buyer agrees to a certain price point from the seller, and accepted it orally but failed to put it on writing, the contract is invalid in case of any dispute.

Thirdly, full names of both parties should be included in the real estate contract (including their middle initials). This ensures the identity of both buyer and seller, should any disagreement arise.

Furthermore, identification of the property with the affixed purchase amount is also necessary in every real estate contract. The property must have a specific description. The purchase amount upon which the buyer and the seller agree should be stated as well, in order to close the deal.

Consideration points should be added in your real estate contract. This helps to further bind the contract, as it calls out specific criteria pertaining the agreement.

Lastly, representatives of both parties who are going to seal the contract should be of legal age and have full knowledge of the business deal.

It is very important for owners in the real estate business to have a contract to set all things straight. With the help of a good lawyer, real estate investors can gain real success in this enterprise if they set everything right from the very start of the deal and ensure that both parties are legally secured thereafter.

If you need someone to manage your real estate contracts, a real estate virtual assistant is one of the best resources to tap. Hire one for your own business now and let them help you with your real estate transactions.