Buying or selling real property can quickly get complicated. Find out what to include in a contract for a new home or other real estate transaction.
Buying or selling real property can quickly get complicated. Find out what to include in a contract for a new home or other real estate transaction.
A real estate contract is a legally binding document between the buyer of a property and the seller. Like other types of sales contracts, it states that there will be an exchange of ownership for a property, usually (but not always) for money. For a home or property purchase to be valid in the U.S., the purchase agreement must be in writing.
A real estate contract is distinct from a mortgage note. A mortgage note is an agreement between a borrower and lender that secures the loan used to buy the property, while a real estate contract is between the buyer and property owner, and it concerns the property itself.
A real estate contract should include:
Some of the most important elements of a contract are buyer contingencies. These elements allow the buyer to make a decision based on the results of inspection of the property by an expert. If the inspection reveals issues that the buyer is not willing to deal with or pay for, a contingency can allow them to back out of the deal. This also applies to disclosures the property owner makes to the prospective buyer via escrow.
Both of these elements can be time consuming. Before signing the contract, buyers and property owners alike should consider how much time they’ll need for inspections and disclosures, and for any additional negotiations or considerations that arise from them. Buying or selling property is an enormous undertaking. Make sure you understand everything in the contract before finalizing it.
In nearly all cases, an attorney needs to draft and create a real estate contract. In some states, a real estate agent might have access to a form or template of a contract, and they are legally allowed to fill in blanks in that form. However, they cannot create or alter anything substantive, as that would technically be practicing law.
Check your state’s requirements for whether or not your realtor or broker can work from a template, or whether you have to have a real estate attorney draw up a personalized contract for you.
Contracts take time and effort. You can make them more efficient with digital documents and electronic signatures. E-signatures are legally binding in all U.S. states and territories and most other countries across the globe. Digital contracts are easier for everyone to access, as they can be viewed on any device capable of displaying a PDF.
Real estate contracts often require several signatures from the parties involved as proof that they understand and agree to various sections and subsections. Whenever a contract is amended or updated, or an addendum is added, new signatures are necessary. Gather signatures electronically, so all parties can review and consent to contracts and move the deal forward.
A real estate purchase contract is only one part of a larger constellation of documents. Commercial and residential sales can include several forms outlining everything from home inspections to counteroffers to zoning, and involved parties need to review and sign all of them. Electronic forms make life easier for homeowners, real estate brokers, sellers, and everyone else who might be involved in the sale of property from one party to another.
Real estate contracts are among the most important agreements homeowners will sign in their lives. First-time homebuyers in particular need to be able to access and review everything in the contract for their new home. Paper contracts add friction and time to an already high-stakes deal. With Adobe Acrobat Sign, homeowners, sellers, and real estate brokers alike can finalize agreements more efficiently and make selling and purchasing a home a little easier.
All you need to create a bill of sale.
Learn why you need a bill of sale, what yours should include, and how you can create a template to use for all of your future transactions.
Create a promissory note that delivers.
No matter the loan, lender, or borrower, it’s always a good idea to put it in writing. Find out the information you need and the fastest, most reliable way to complete a loan contract.
Make paperwork easier with e-docs.
Learn how electronic documents can streamline business processes and filing systems while ensuring simple and secure access to your partners.
How to create rental and lease agreements.
Explore the ways you can create, e-sign, track, and manage lease and rental agreements.
Manage agreements and meet legal requirements with Acrobat Sign.
No matter where you are in your journey, take the next step with Adobe Document Cloud.