zack childress guidelines on the elements of a real estate contract

Zack Childress Guidelines on the Elements of a Real Estate Contract

Zack childress a real estate contract is a legal agreement signed between two parties for the purpose of purchase or sale or any form of exchange.

Zack Childress real estate reviews describes the guidelines and elements of a real estate contract

  1. Lease
  2. Freehold
  3. Escrow Contract

Lease:

It is a rental contract signed for a stipulated period of time.

Freehold:

Permanent contract includes title fee, title ownership etc.

Escrow contract:

Buyer, seller and escrow agent is involved in a real estate transaction. Escrow agent is considered to be the third party.

For exchange :

It is compulsory to make the real estate contract in writing and usually 2 copies are made where each (buyer and seller) retains a copy for themselves and is complete where both parties are signed in consent.

A Real estate contract for sale should comprise of

  1. Competent Parties’ name
  2. Real estate agent
  3. Real estate information
  4. Description
  5. Purpose
  6. Signature
  7. Void
  8. Invalid
  9. Rights

Competent Parties’ name:

The full names of both the parties are to be used in the entire contract. The parties are otherwise called “principals”.

Real estate agent:

If any agent/broker is involved in the deal, it has to be mentioned for the purpose of commission.

Real estate information:

Either the entire address or legal information about the property has to be included.

Description :

details about the property

Purpose:

The contract should state for what purpose the agreement has been signed.

Signature:

The contract is complete if and only if both the parties sign in consent.

Void:

The agreement becomes void if there is any illegal action or stay order is enforced.

Invalid:

Mentally-Retarded, disabled or drug addicts cannot involve in this contract. The contract is signed and considered to be valid only by mentally stable (clear) and with his/her full knowledge.

Rights:

The contract should state all the rights, obligations and clauses from either side to ensure smooth deal. There should not be any legal problem in future stating violation.

If any alterations are to be made in the contract, then it should be signed by the concerned party.

• The closing date and possession date must be mentioned in the contract. It is optional to mention the closing cost, condition of the property at time of sale.
• The bearers (buyer or seller) who are going to pay the common fees must be included in the contract.
• The fixtures and appliances if provided ,then it is to be binded in the contract
No transfer of title ownership is allowed through real estate contract.

  • Contingencies in a real estate contract
  • Mortgage contingency
  • Home inspection contingency
  • Appraisal contingency

Riders are special attachments of the contract if any.

While preparing real estate contract, make sure you take the help of a reliable lawyers, tax advisors and agents, there could be scam by making fake documents.

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