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Terms and Applications of Contracts used in Real Estate purshase in Miami

A real estate contract is a legally binding agreement between two or more parties. Both parties are required to follow the terms of the agreement of the real estate agreement. If one of the parties fails to comply with the agreement, it may be punished with measures by the courts and, in the case of "breach of contract", there may be restitution of some amount and payments of damages, legal fees or other expenses incurred by the other party part.

Real Estate Under Contract

The term "under contract" means that there is an agreement that links a buyer to a seller through a property. Here, the buyer and the seller agree to the terms of the agreement that the buyer will acquire the property. When a property is under contract, the seller can not enter into contract with any other buyer, since everything is already agreed upon in the terms. 

Real estate contracts are used as a way of communicating and collateral between the parties. The contract of purchase and leasing are the main forms of real estate contracts. The term under contract applies to a real estate contract containing contingencies. Contingency is a condition or circumstance that must be fulfilled in order for the real estate contract to become valid.

Requirements

A property is considered under contract from the moment the last part of the property contract is signed. The real estate agreement can be formal or informal. However, a real estate contract must be in writing to be legally binding and, depending on the state, can be made only by lawyers or also by real estate agents. In addition, the buyer must give the seller something of value as a guarantee for validation of the contract.

Sale pending

Properties under contract are considered "out of market", ie the property under contract is being traded, with the status as "pending" sale. Thus, the buyer is entitled to a period of time to make the hits and financing, as well as the so-called "due diligence" - process of verifying the declarations under the contract, such as zoning, property valuation value and taxes.

Marketing under contract

Properties under contract are often marketed until their closure. This is because many unforeseen events may occur between the signing of the contract by both parties and the expected closing date. Sometimes the closing date has to be postponed, as buyer financing may present problems or during inspection, the property may reveal a defect that the buyer does not want to accept, leading to a cancellation of the contract, therefore, all possibilities must be taken into consideration when the contract is closed.

 

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