Real estate contracts fall under the umbrella of contract law. A contract is a legally enforceable and binding agreement between two or more parties. In most states there are standardized contracts used by real estate brokers that are drafted in the form of an offer. The offer is usually signed by the buyer, but the contract is not binding until the seller accepts, signs and creates a meeting of the minds, (offer and acceptance). There are basic core requirements that must be included to make a real estate contract valid and enforceable:
♦ Consideration
♦ Signatures by Competent Parties
♦ Legal Purpose
♦ Offer & Acceptance
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