While buying and selling real property is a major milestone for most individuals, many parties that engage in real estate transactions are not formally educated on real estate contracts. This comes as no surprise — a family may only purchase real estate two or three times over the course of their lives. Sunwest Escrow — your real estate contract specialists in Albuquerque — believes that all individuals purchasing or selling a piece of property should have a basic understanding of the aspects that make a real estate contract legally valid. We’ve identified the following elements which are necessary for legally valid real estate contracts.
The 3 Most Important Elements in a Legally Valid Real Estate Contract
1. The property must be exchanged for money or something else of value.
2. An offer must be made by the buyer, the seller must accept the offer, and both parties must agree to all contingencies.
3. A real estate contract must be written. Most state laws require all real estate contracts to be written and agreed to formally in writing.
Other Important Elements in a Legally Valid Real Estate Contract
At its core, a real estate contract must be a written document detailing the conditions of a sale of property that have been agreed upon by the buyer and seller. However, there are many other elements that also make these contracts legally binding, including:
● All parties must be of legal age. In accordance with state laws, a minor cannot legally enter into a contract or that contract will become invalid.
● All parties must be of sound mind when signing the contract. Individuals who are mentally incompetent or who are under the influence of alcohol or drugs will invalidate a contract if they sign it.
● All information about the sale must be provided on the document in legal terms that are easily understood by all parties.
● All details of the sale, including purchase price, contingencies and other relevant information, must be listed on the contract.
● All agreements within the contract must adhere to all local, state and federal laws. A contract which involves any illegal activity is not legally valid.
Sunwest Escrow in Albuquerque, NM is the most loyal and trusted escrow company among title companies and real estate brokers. For more information concerning what makes a real estate contract legally valid, contact the real estate contract specialists at Sunwest Escrow today!