A real estate purchase agreement, often referred to as a sales contract or purchase contract, serves as a legally binding contract between a buyer and a seller in a real estate transaction. Its primary purpose is to outline the terms and conditions of the deed of sale for real estate property, including the purchase price, financing details, contingencies, and the timeline for closing. This agreement helps ensure clarity and legal protection for both parties throughout the property sale process.
Contingencies are conditions or specific events that must be met for the real estate contract to remain valid. Common contingencies include inspections, financing, and the sale of the buyer's existing property. If these conditions are not satisfied within the specified time frame, the contract can be canceled without penalty. Contingencies are included in real estate contracts to protect the interests of both the buyer and the seller.
If one party breaches the contract for real estate, such as by failing to perform according to the terms of the agreement, legal remedies may be pursued. Depending on the nature of the breach and the terms of the contract, remedies may include specific performance (forcing the party to fulfill the contract), monetary damages, or termination of the contract. The course of action will depend on the specific circumstances and the applicable laws governing real estate contracts in the jurisdiction. You can also explore free contract templates exclusively made for business and professional purposes by Legitt team.