Real Estate Contract

A real estate contract is a legal agreement between a buyer and a seller outlining the terms and conditions of a property transaction.

What is a real estate contract?

A real estate contract is a legal agreement between a buyer and a seller outlining the terms and conditions of a property transaction. It includes details like the property's price, payment terms, closing date, and any specific conditions or contingencies. Once both parties agree and sign the contract, it becomes a binding agreement, and each party is obligated to fulfil their respective responsibilities. 

What happens when a real estate contract expires? 

When a real estate contract expires, it means that the agreed-upon period for the contract has come to an end. The terms and conditions outlined in the contract are no longer binding, and both the buyer and the seller are free from the specific obligations and commitments stated in the expired contract. If the property transaction hasn't been completed by the contract expiry, the parties may need to decide whether to extend the existing contract, negotiate a new one, or explore other options. It's essential to address the situation promptly to avoid any uncertainties or misunderstandings between the parties involved. 

What kind of terms are in a real estate contract? 

A real estate contract typically includes various terms and conditions that outline the specifics of a property transaction. Some of these terms may include: 

  • Price: the agreed-upon amount for the property.
  • Closing date: the date when the property officially changes hands.
  • Contingencies: conditions that must be met for the contract to proceed.
  • Property description: details about the property being bought or sold.
  • Property details: specifics about the condition and features of the property.
  • Signatures: agreement validation through the signatures of involved parties.
  • Possession conditions: terms related to when the buyer takes possession.

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