| One of the tools used in the business of real | | | | his or her property while the buyer assures the |
| estate is the use of contracts. However, not | | | | seller that he or she will buy the property. The |
| many people understand what the contract is all | | | | second type which is the unilateral contract |
| about or the purpose of having one. There should | | | | means the seller has given the obligation to sell |
| be no excuse for a seasoned expert or a rank | | | | while the buyer has an option of buying the |
| beginner from not knowing or understanding the | | | | property or not. |
| contract. | | | | Any prospective buyer should know the basic and |
| A person who wants to invest in a real estate | | | | legal requirements that should be present in order |
| property should be know the basics of a real | | | | to consider the contract as a valid one. |
| estate contract because the basis behind this | | | | The first requirement is that there should be a |
| contract came from the "common law contract | | | | mutual agreement that took place. Second, the |
| principles." In most states, real estate agents and | | | | purchase and sale of the real estate contract |
| lawyers make use of standardized contracts like | | | | should be in a writing form for it to be considered |
| Counteroffer and Acceptance and Offer. The | | | | as enforceable. Otherwise, if the agreement only |
| term offer refers to the contract that is being | | | | happens in a verbally and one of the parties |
| drafted. Meanwhile, the buyer is the one who | | | | (buyer and seller) decides not to push through |
| usually signs this offer. A "mutual assent" or | | | | with the deal, either the buyer or the seller will be |
| "meeting of minds" should take place in order for | | | | unlucky of the deal. Third, the contract should |
| the contract to become effective. Remember | | | | identify who are the parties involved in the deal. |
| that unless the seller formally accepts its terms | | | | Even if the law does not require it, the full names |
| and conditions, the contract does not bind. | | | | and even the middle initials should be present in |
| Acceptance of the contract happens if the seller | | | | the contract; if one party is a corporation, the |
| already agrees to the terms of the buyer. | | | | name of the company should also appear in the |
| Counteroffer takes place when a seller negotiates | | | | contract. Third requirement is that, the specific |
| with the buyer. But if the seller does not accept | | | | property should be identified, otherwise if the |
| the offer during the given time frame and | | | | description of the property is vague, there is no |
| manner that the buyer set, no contract happened | | | | binding contract. The contract should also include |
| at all. For instance, the contract says that the | | | | the property's purchase price and a consideration |
| acceptance must be made through facsimile, the | | | | which comes in the form of a benefit, value, or |
| acceptance made through telephone call or mail is | | | | interest that includes promise. Lastly, for the |
| still unacceptable. | | | | contract to be enforceable, the parties should |
| There are two kinds of real estate contracts- | | | | have their signatures present on it. The signature |
| bi-lateral contract and unilateral contract. When | | | | of a witness or notary is not required but if there |
| you speak of bi-lateral agreement, it means that | | | | is a facsimile signature, it will only be acceptable if |
| there is a consensus between the buyer and the | | | | the contract says that the facsimile signatures |
| seller since the seller agrees that he or she will sell | | | | that appear are valid. |