<--Back to Wiki Home
Define Sale Contract in Real Estate
Sale Contract:
A sale contract is an agreement between two parties where one person agrees to sell something to another person and the other person agrees to buy it. In the case of real estate, a sale contract is an agreement between a buyer and a seller that contains all the important details about the sale of the property, including how much money will be paid and when, as well as any conditions that must be met before the sale can be completed.
Example:
Let's say that you want to buy a house from someone. You would both sign a sale contract that says you agree to pay a certain amount of money on a certain date and that the seller agrees to give you the house on that same date. The sale contract might also include things like what happens if the house has problems that need to be fixed before you can buy it, or if you change your mind and decide you don't want to buy the house after all.
"A Deep Dive for Real Estate Agents"
A few more things that you should know about sale contracts when it comes to real estate transactions:
- A sale contract is a legally binding document. Once both parties sign it, they are obligated to follow the terms and conditions of the contract.
- The sale contract will typically include details such as the purchase price, the closing date, and any contingencies that must be met before the sale can be completed. Contingencies might include things like a satisfactory home inspection or the buyer being able to obtain financing.
- If either party fails to follow the terms of the sale contract, the other party may be able to take legal action to enforce the contract or seek damages.
- In some cases, a sale contract might be accompanied by a "earnest money" deposit, which is a sum of money paid by the buyer to the seller as a show of good faith. This money is typically held in escrow until the sale is completed, at which point it is applied toward the purchase price.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Oh, a sale contract, it's so neat,
Two people meet, they both agree to a deal so sweet.
One wants to sell, one wants to buy,
This contract helps them both comply.
It's for real estate, buying a house,
The terms are clear, so no one can grouse.
The price and date, all laid out,
It helps avoid any doubt.
It may have terms that must be met,
Before the sale is fully set.
It's a promise that must be kept,
So both parties don't get upset.