A house for sale contract or a real estate purchase contract is a contract made between a house buyer and seller to agree with specific terms relating the sale of property at a closing date. Because the contract creates a legal obligation that binds upon the parties thereto, it must be based on the buyer’s and the seller’s mutual consent, must not involve fraud or duress, must be made by parties that are legally capable to make it, and must be in compliance with public policy, laws and regulations. The obligations related to how the sale of house should occur on the closing date must be agreed by both the buyer and the seller. A house for sale contract template is made according to all obligations agreed by both parties.
Do You Need a House for Sale Contract?
You will need the contract if you are one of the following parties.
- You are ready to sell your house and you want specific parameters and requirements to be met on the closing date.
- You are ready to buy a house and you want to make an agreement with the seller regarding parameters and requirements to be met on the closing date.
How Necessary a House for Sale Contract Is?
The transfer of ownership of a house or another type of real estate property can occur naturally without a contract; however, a contract makes certain that all parameters for such transfer are legalized and breaching those parameters is deemed illegal and may result in penalties.
It must be understood that a contract doesn’t transfer the ownership or the house as well as other types of real estate property written on it. It only specifies all parameters and obligations that the buyer and seller must comply with as the buying process proceeds and when the closing date arrives. It determines all responsibilities that the buyer and seller must carry out before the transfer of ownership actually takes place.
A house for sale contract can be made with or without a help provided by a lawyer. A house for sale contract template is now available for use; however, because a house for sale contract doesn’t always cover the same issues, the template often has to be modified before it can be used. A consultation with a lawyer will be helpful to make sure that the template is modified properly and that all necessary issues that will arise during the purchasing process are covered by the contract.