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What Is a Real Estate Contract?

Real Estate Contract is an agreement or deal regarding the use, purchase and even exchange of land and other real estate properties among companies, parties and even individual owners. This kind of contract could cater to four kinds of transactions and agreements namely purchasing, sale, leasing and rental. Just like any other contract and deals around the world, the Real Estate Contract also does follow and take into consideration usual contract laws and the submission of legal requirements which are all stated in the land contracts. Information usually required in the document are a legal description of the property, specific address, selling price and agreed buying price.

Other information that can be included are the specifics of a mortgage with the amount, rate, term and its due date. When necessary, parties can decide as well on the deposit amount and the closing date or the day when everything will be finalized including the transfer of the property.

It is a must for real estate contracts to have terms and conditions. These laws and conditions are essential in making a contract valid and effective. They can be on requiring a deposit such as in the purchase of a property which would really depend on the parties, property liens and the party who will pay for them as well as the conduct of home inspections and appraisals. The date of possession may also be stated and this normally refers to the day when the contract took effect or when the property is transferred to the new owner.

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