It is a legally binding contract entered into by two parties for the sale, purchase, or exchange of real estate properties. A real estate contract would typically include provisions such as financing, seller assistance, home inspection, fixture appliances, closing date, and fixtures and appliances.

Overview

Real estate lawyers are lawyers that specialize in property transactions and disputes. A real estate lawyer is primarily involved in the drafting and evaluation of real estate papers such as purchase agreements, mortgage documents, title documents, transfer documents, and so on.

Real estate document writing focuses on creating a precise, clear, and unambiguous contract to protect their clients from unnecessary lawsuits. Thus, the goal of creating a proper real estate contract is to reduce disputes caused by imprecise and ambiguous contract wording. One of the most significant processes in a real estate transaction is the creation of a contract. There are several real estate agreements that are typically dealt with by real estate lawyers, which have been detailed below.

What is a Real Estate Contract

The process of drafting a real estate sales contract is essentially writing and detailing all necessary elements applicable to the transaction.

Some Common Real Estate Agreements

1. Sale deeds or Real Estate Purchase Contract

A real estate purchase contract is a two-sided agreement between the parties involved in the selling of property. Real estate agreements typically involve property or house transactions in which the buyer agrees to purchase property from the seller. A real estate acquisition agreement must include the following provisions:

• Property identification of the buyer’s purchased property’s address, as well as the essential legal descriptions
• Identification of both the seller and the buyer of the property.
• The cost of the property as well as the terms of purchase.
• The dates of the transaction’s start and end must be specified.
• Any additional taxes or expenditures incurred by others must be detailed in the agreement.
• Parties must agree on who pays what costs.
• Any material flaws that exist must be disclosed.

2. Agreement for Sale

An agreement for sale is a pre-sale agreement in which the seller indicates their interest by agreeing to transfer the goods or property to the buyer for a certain consideration at a later date or when a condition is met prior to the transfer. The agreement for sale, like any other agreement, must be in writing and signed by all parties involved.

3. Builder Buyer Agreement

This agreement is a type of sale deed between the builder and the buyer. Before pursuing legal action, it is critical to read and comprehend the builder buyer agreement. A real estate lawyer guarantees that the agreement is well-drafted without jeopardizing the buyer’s rights owing to arbitrary agreement conditions.

4. Mortgaging Deeds

The mortgage deed transfers an interest in the property or assets to be mortgaged to the mortgagee in exchange for a mortgage loan. A mortgage is defined by the Transfer of Property Act as a transfer of interest in a specific immovable property to secure payment of money or loan advancement. The real estate lawyer draughts a mortgage deed based on the sorts of mortgage.

5. Joint- venture Agreements

A joint venture agreement specifies the duties and responsibilities, as well as the distribution of profits and losses and other provisions related to the joint venture’s aim. The joint venture agreement is commonly used by real estate investors who embark into one-time projects, investments, or business possibilities.

6. Lease Agreement

The conditions of the agreement between the landlord and renter are binding under this arrangement. The agreement stipulates the length of the tenant’s stay at the landlord’s property for which the renter must pay monthly rent. A lease is the transfer of possession from the lessor to the lessee for a set sum of money. However, ownership stays with the landlord or lessor under this agreement.

7. Power of Attorney

Power of attorney is used to grant the owner’s authorization to another individual or party to lawfully act on his or her behalf. A real estate lawyer will assist in the drafting of the Power of Attorney by covering all aspects of the property, including asset management and money matters. The authority granted to the attorney by the principal power of attorney can be broad or particular. The power of attorney delegates authority to the other person to act as one’s legal representative. In the case of a special power of attorney, the powers provided are particular and limited. Therefore, it is best to use this largely in real estate transactions.

Important Considerations When Drafting Real Estate Contracts

There is a basic format that comprises the following key points while drafting any contract or agreement including real estate contracts.

• The contract or agreement must contain the name of the document which is basically the nomenclature of the agreement. For instance, a deed of conveyance or leave and license agreement. The name of the agreement is based on the facts described in the entire agreement.
• The date and place of executing the agreement or contract must be mentioned as it plays an important role in the period of limitation, priority, or registration.
• The name and description of the parties to the agreement must be mentioned in the document. This clause must also include a definition as to the heirs, executors, and assigns of the individual.
• Where a full background or brevity of the facts and events leading to the execution of the agreement is described, recitals must be provided.
• Other clauses include- covenants, mode of payment, jurisdiction, testimonial, and signature of execution clause .