“Real estate is an imperishable asset, ever-increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.” - Russell Sage
If you are new to the real estate market, you must be wondering what a real estate contract looks like, what are its different types, and what it is? Someone working in a real estate market is likely to come across a legal contract at some point.
The rules and regulations for the real estate market vary from country to country. When talking about the geographical impact on the real estate market protocols, we can’t neglect Canada, where most real estate deals require a commercial lawyer to close the deal.
Let’s get into the details.
What is a real estate contract?
It is a legally binding contract that explains the terms and conditions agreed upon in a real estate transaction. This contract is signed between two or more parties. The mentioned terms on the contract are put into effect after its being signed by all involved parties.
When talking about a real estate contract, the most common details mentioned are -
- the deposit amount
- deal type
- real estate contingencies
- what appliances are involved in the process
- who is supposed to pay the deal closing amount
- what is the mature date of closing the deal and much more.
Here, a real estate investor has a prominent role to play. S/he is entitled to negotiate and get the contract signed with the complete willingness of all parties involved in the deal. This acts as the first step towards striking the deal.
Developing a real estate contract -
A real estate contract aims at clarifying the deal details. This is a legal document prepared to cast aside all insecurities emerging via both parties involved in the deal. As per an Edmonton commercial lawyer, seeking the help of an experienced attorney is essential to process a document. A real estate lawyer helps in -
- Drafting and evaluating the agreement
- Get the paperwork and other legal formalities done
What are the standard requirements of a real estate contract?
The requirements of a deal must be met before you initiate the process of preparing a real estate contract. This makes it legit to enforce the contract on both the parties (buyer and seller).
Here are some everyday needs of a contract -
- Offer - The first party should willingly offer the real estate property (seller) to the other party (buyer). This statement should be in writing, mentioning all required details.
- Consideration - This indicates something (in value) that will be exchanged between the parties involved. It can be any solid asset owned by one of the parties.
- Legal eligibility - Both parties should be legally eligible to enter the real estate market. This is generally in terms of age. You should be of 18 years or above to initiate a legal document.
The bottom line is that -
A real estate contract has to be precise and straightforward. And the first step towards getting a contract prepared is to understand the deal type, gather all required information, seek a commercial attorney’s consultation, and then get it framed. The contract should contain all detailed information revolving around the deal, parties involved, and financial details.