hat exactly is a
contract?
2. Consideration
By definition, a contract is an Usually, money is the form of
agreement between two or more consideration people use, but
parties to do, or to refrain from sometimes, a promise to
doing, a particular thing in perform/pay is also good. .
exchange for something valuable.
The parties can be individuals, 3. Written contract
businesses, organizations and
government agencies. All real estate contracts must be
in writing. In order to write a
They key elements of a successful good real estate contract, you
real estate contract: must keep in mind these things:
1. Offer and acceptance You must write the full name of
the parties on the contract and
This implies original signatures thus identify the parties.
with no alterations to the
contract. Don't mistake offer and You must have the legal
acceptance for counter-offer. description on the contract.
When the original offer is marked Sometimes, the address will do,
up and initialed by the party but it's preferable to have the
receiving it, then signed, you full legal description. By having
got a counter-offer and not offer this on the contract, you will
and acceptance. When you come to have the property identified.
a final agreement, you should
rewrite the contract according to You must have the amount of the
the agreement and this contract sales price on the contract.
must be signed by both parties.
The contract must be signed by the basic lease contract with the
all the parties involved, or it option to purchase and, during or
won't be enforceable. at the end of the lease period,
it gives the tenant/buyer
Keep in mind that minors, drugged exclusive right to buy the home
persons, mentally unfit etc, under the terms to which both
cannot sign any contracts. Make parties agree in the contract.
sure that all the parties But first, the tenant/buyer have
involved are competent. to pay the landlord/seller a
non-refundable option deposit
Make sure all parties know the that is applied to the purchase
essential details, rights and price of the home. Then, the
obligations that are stated in tenant/buyer pays a sum that is
the contract. typical to the rental amount and
usually, it is done on a monthly
What exactly is a lease purchase basis. A portion of that monthly
contract? payment is applied to the
purchase price of the home.
Lease purchase contracts combine
About the Author:
Amanda Shoemaker owns a great directory of lease and lease purchase properties and houses for rent. Visit her site at http://www.leasebeast.com
Source: www.isnare.com
