When it comes to buying and selling property, the real estate contract is the single most important document of the transaction. This form details the terms of the agreement, including any applicable covenants, conditions, and restrictions. Because so much is at stake for both parties, it’s wise for each to hire their own real estate lawyer to review the agreement and negotiate for any modifications as needed. While an attorney will answer all your questions regarding a specific transaction, here’s what you should know about these documents in general. 

What Kinds of Terms Should the Contract Contain?

Real estate contracts are complicated documents that address virtually all aspects of a transaction. Also known as purchase and sale agreements, they contain the price and closing target date. Additionally, they state the required amount for the earnest money deposit, as well as information regarding inspections, surveys, and title insurance. The documents will also specify which party is financially responsible for these elements. They should also address any contingencies and include details about property taxes and utilities. 

Typically, the seller’s real estate lawyer will prepare the purchase and sale agreement. Because of this, the initial terms will undoubtedly be in the seller’s favor. In other words, if you’re the buyer, it’s essential to review the contract line by line to note any red flags. You can then request any reasonable changes as needed. 

What Happens in the Event of a Breach?

Because a real estate contract essentially addresses every aspect of the transaction, there are countless ways to violate its terms. If one party commits a breach, what happens next will depend on the circumstances. For example, if the buyer backs out of the deal after the deadline has passed without due cause, they could end up losing a considerable amount of money, including any deposits that have already been paid. If, on the other hand, the seller is dishonest about an existing title issue, the buyer may walk away or sue for damages. 

If a breach does occur, it’s wise for both parties to seek legal counsel. Regardless of whether you’re buying or selling, a seasoned attorney will help you hold the opposing party liable for any violations of the terms of the agreement. 

If you want to buy or sell property in Connecticut, turn to a real estate lawyer at Renzullo & Associates. Based in Winsted, this law office has more than 50 years of experience protecting their clients’ best interests. To learn more about the counsel they provide, visit their website. To request an initial consultation with a real estate lawyer on their team, call (860) 379-9885.