Whether you’re buying, selling, or renting a property, a contract will be required to ensure all parties are legally protected. However, real estate contracts can be complicated to understand. For this reason, it’s in your best interest to work with an attorney who can explain what your rights and responsibilities are before closing the deal. Any misinterpretation could end up costing you a great deal, and once you sign your name, it’s difficult to make modifications later. The following guide will help clarify a few things you should know about these documents.

Understanding the Basics of Real Estate Contracts

What Is a Real Estate Contract?

A real estate contract is a legally binding agreement that outlines the terms of a purchase, sale, or exchange of property. These details are put into writing to define the roles of each party involved in the transaction. There are a few different types of real estate contracts, including purchase agreements, real estate assignment contracts, and lease agreements. Purchase agreements are the most common, as they are used for buyers and sellers when transferring the title of a specific property.

What Makes a Real Estate Contract Enforceable?

Real estate contracts address a variety of issues. For a purchase agreement to be enforceable, it must be in writing and signed by both the buyer and seller. Each party also has to be legally competent. While contracts can vary depending on the types of transaction and location of the property, generally, they all need to include a description of the property, the names of the buyer and seller, the sale price and purchase method, the closing date, and any requested contingencies that allows either party out of the contract based on certain conditions.

How to Review a Contract

Before signing a real estate contract, it’s imperative to have an attorney review it. Faulty documentation can result in a delayed closing and a host of future problems. They will check for accuracy and ensure the other party’s responsibilities are clear. An attorney will also make sure your rights are protected and go over the contract withdrawal terms so you know your options should something go wrong.

Real estate transactions are complex and involve a substantial amount of documentation. If you have any questions or are unsure about the terms of a contract, an attorney at Looney, Looney & Chadwell, PLLC can help you gain a better understanding. They work with buyers and property owners throughout Cumberland County, TN, to negotiate purchase agreements and leases for residential and commercial real estate. For over 80 years, they have remained committed to providing zealous and effective representation. Schedule a consultation by calling (931) 484-7569, or visit their website to see a full list of legal services they offer.