With the astounding figures that the real estate industry transacts in every year, one cannot help but reiterate the importance of investing in property of your own. Not only is it a ‘commodity’ that you cannot produce any more of, which obviously is one of the reasons for its increase in value every year among other things but it gives you a place that you can call your ‘own’.
And for this, one has to be very careful when signing a real estate contract, as it is important for the buyer/ investor to be aware of the elements that make a contract valid.
Since the real estate contract should be a bilateral agreement, where the seller has agreed to sell and the buyer has agreed to purchase, here are a few basic aspects of a real estate contract that will help you understand whether it is valid or not:
Mutual Assent
This means that both parties (the buyer and the seller) have to agree to sell and buy.
In Writing
Gone are the days when people were as good as their word. These days it is imperative to put in writing the agreement between the buyer and seller at all costs.
Identify the parties
The contract should clearly specify who the transaction is between, with full names along with initials.
Identify the property
Details about the property have to be clearly mentioned and specified in legal terms for the safety of both the buyer and seller.
Purchase price
The contract should clearly specify the agreed amount of money for which the property will be sold.
Signatures
Both parties should sign the contract for it to be deemed valid.