Items needed in a real estate contract for it to be approved

On Behalf of | Sep 7, 2018 | Residential Real Estate

If you are planning to enter into the real estate market in Fort Lauderdale, or any other area in South Florida, it is important that you know what is required in order to have a valid and binding contract. You will want to ensure that when you enter into a contract to buy or sell your property that every “I” is dotted and “T” is crossed so that the purchase/sale does not fail because the contract is faulty.

First, both parties that enter into the agreement must be of sound mind when doing so. This means that neither the buyer nor the seller can be mentally incapacitated to the extent that he/she does not understand what he/she is doing. At the same time, both parties must willingly and of their own volition enter into the contract for sale/purchase.

The other required components of a valid contract are offer, acceptance, consideration and delivery. For example, there must be an offer to purchase the property from the buyer to the seller; the seller must accept the buyer’s offer; there has to be consideration given between the parties in exchange for their mutual promises to each other; and finally in order to be binding, the contract must be timely delivered to all parties.

The terms of the contract may be customized and may reach far and wide to cover just about any topic or situation as long as those terms do not require an illegal activity. The terms of the contract will define all of the rights, obligations and liabilities of the buyer and the seller and are of vital importance in order to ensure that the objectives of both the buyer and the seller are properly met.

Writing a valid real estate contract is perhaps the most important part of buying or selling a property in Fort Lauderdale, or any other area in South Florida, as the contract is ultimately the road map that everyone must follow in order to consummate the sale between the buyer and the seller.