The transaction of a property between a buyer and a seller is represented by a legal document.
This legal document is known as a Real Estate Contract.
This contract should contain all the conditions that are sufficient to legally bind the buyer and the seller in relation to the real estate transaction.
There are some elements that are essential to complete a real estate deal lawfully.
These important elements are described below.
Written format A real estate deal between the two parties must be in written form to gain acceptance by the court.
Oral contracts cannot be given legal importance so one party involved in the oral contract cannot stand in court against the other party that withdraws itself from its responsibility.
So to provide legal powers to both the parties, it is necessary that the contract must be in writing.
Also the interest of both the parties dealing in the property transaction should not oppose the law.
Identification of both the parties The contract in written form should clearly identify both the parties dealing in this transaction.
The contract should affirm that both the parties signing the contract are majors and not minors because a minor cannot sign the legal documents.
Mental fitness of both the parties The contract should affirm that both the parties signing the contract are mentally fit to complete this transaction because a mentally retarded person is not considered responsible enough to sign the legal documents.
Identification of the property The ownership details, registered domain location, value and sale price of the property to be transacted must be mentioned in the written contract.
The contract should look like a proposal or an offer that is proposed or offered by one party to another party and the other party should agree to this offer or proposal.
No influence of third party The contract should mention that both the parties are signing the contract under the influence of any third party but are doing so willfully with full knowledge of the terms and conditions of the agreement.
If this statement is missing then the agreement cannot be considered valid in the court.
The buyer and the seller entering a property deal must be careful about all the elements of a real estate contract and should not forget to include any element.
Taking all the elements as mentioned, a valid contract can be formed between the buyer and seller to buy and sell a property.