Real estate contracts are often highly complex documents that are often confusing, especially if you’re purchasing a home for the first time. There are different types of contracts tailored to the specifics of each transaction. Here are some types of contracts an attorney may use for your purchase.

What Are Some Common Real Estate Contracts?

1. Purchase Agreement

Purchase agreements are used in the majority of transactions, especially in most residential home sales. These are legally binding documents that codify the terms negotiated by the buyer and seller.

In addition to identifying the parties involved, the purchase agreement will also list the agreed-upon price, any contingencies, and any appliances or fixtures included in the sale. The contract will also specify the amount of earnest money buyers will need, and under what conditions they can cancel the sale without penalty.

2. Lease Agreement

A lease for renting a home is also a type of real estate contract. This document outlines the rights and responsibilities of both the owner and the tenant, including rental amounts, due dates, and how the property may be used. A lease agreement should also describe which party is responsible for maintenance and repairs, and the process for terminating the contract.

3. Assignment Contract

These agreements are typically reserved for situations in which an investor is buying property from a seller. While the investor doesn’t actually take possession of the property, the assignment contract gives them exclusive rights to the sale. With this agreement in place, they may make any necessary improvements and find a buyer, who will pay the investor a fee and purchase the property directly from the seller.

If you’re planning on buying a home in New London County, CT, Stuart R. Norman Jr. has the experience and background to ensure your transaction goes smoothly. This law firm has been serving buyers and sellers alike for over 40 years and is dedicated to protecting your rights throughout the process. Visit their website for more on their real estate law services, or call (860) 376-0069 to arrange a consultation with an experienced attorney.