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The elements of a modern real estate contract

On Behalf of | Jul 15, 2022 | Real Estate

Buying or selling a piece of real estate in Rhode Island will involve signing a contract. There are certain elements that each real estate contract must have in order to be considered legally valid. If you are the one selling the property, you will need to ensure that the contract that you provide contains all of these crucial elements.

A legal contract should contain valid information

The real estate contract that you sign should contain information that is fully valid and verified. This should include the address of the home that is being sold. There should also be a fully detailed description of the property. This should include any easements or other obstacles that will limit the use of this property.

The contract that is agreed upon should also include the full names, current addresses, and contact information for both the buyer and the seller. If a number of people plan to buy the home, they should state the arrangement they are doing so under. This can be as tenants in common or as joint tenants. Full details for all buyers must be included.

All details of the sale must be included

Every detail of the agreement that a buyer and seller come to must be included in the terms of the contract that they sign. This includes the full purchase of the home that has been agreed to. It should also include all of the relevant information related to buyer financing, such as whether the buyer will pay cash or get a mortgage.

Other details that the contract should include will concern the issue of closing costs. This covers the costs that are due when the buyer takes full possession of the property. The contract should also cover issues related to property taxes.