Real Estate Sales Contract

Usually a real estate sales contract is prepared by a realtor on behalf of a home seller. However, when a realtor is not involved, a real estate investor can prepare his/her own real estate sales contract. The real estate sales contract outlines the legal rights of both the home buyer and the seller.

What is a real estate sales contract?

A real estate sales contract defines all details of the agreement between the property buyer and seller. The real estate sales contract can also be called by other name such as an offer to purchase or a contract of purchase and sale.

Whoever prepares the real estate sales contract has to do it according to the real estate laws within the state, city, or any jurisdiction that has a say in the property. The purchaser has to sign the real estate sales contract and then the seller also has to sign it. The seller and the buyer need to be two different parties. In a real estate short sale, it is common for a buyer to want to be the seller to keep the home. However, the bank does not allow the seller to be the buyer. Basically you cannot default on a loan and then buy your own home back for cheap.

What does the real estate sales contract include?

The real estate sales contract details all the terms of the sale of the property and the obligations of the buyer and the seller. Details in a real estate sales contract includes (but not limited to):

• price of the property
• terms
• legal description of the land
• kind and condition of the title of the property
• form of deed the seller will deliver
• kind of title evidence required
• who will provide title evidence
• how defects is the title are to be eliminated