Real Estate Contract

Real estate contracts are contracts used between parties involved in buying or exchanging real estate. The language in the contract describes the sale, lease or rental of the property in question. The real estate contract applies usual contract law and specified requirements and often named land contracts or a contract for deed.

The real estate contract is generally written and agreed upon by both parties and signed. However, in some situations, one party will draw up and sign the contract and give the contract to the other party for review and acceptance followed by a signature. To learn more about real estate contracts, you can read the questions below that have been answered by Experts.

Is there any way to get out of a signed contract without being sued by the seller?

When you signed the contract agreeing to buy a house, you entered into a legal contract that could be enforced by the court. The general lawsuit would be for breach of contract. While the seller cannot force you to go through with the purchase of the home, they can sue for any financial losses that occurred due to the breach of contract. With most real estate contracts, the buyer is generally expected to place a deposit on the purchase before closing. If you paid a deposit, you may lose it if the court thinks your reasoning for backing out of the contract was unjust. This will depend upon how the contract was written and what was agreed upon.

There are a couple of ways to back out of a real estate contract. The first way is if your real estate contract says you will need to get a mortgage for the purchase of the house. If you were denied the mortgage, it might be possible to back out. Another way to get out of a real estate contract is if the inspection of the home was unsatisfactory. However, backing out of a contract just because you no longer want the home might create legal issues.

Can a real estate contract be extended into perpetuity with no ending date in the state of Florida?

Long term lease contracts are common, especially with businesses. The 99 year lease contract is the most common of the long term leases. There are also 50, 80, and 175 year long term leases used. The goal of the large number of years is to provide that the lease will extend for the lifetime of the tenant. For this reason, a contract cannot be "in perpetuity" but must have an ending date.

In New York, I had a real estate contract to sell my home to a buyer who had a contingency to sell their home. What proof do they need that they could not close and would we be entitled to their deposit on our contract?

The only way a buyer can retrieve their deposit is if they had agreed to a financing contingency and were unable to get lending. Another reason is if the buyer was buying a coop apartment but was denied by the board. You may want to speak with an attorney about other options such as suing for breach of contract. However, if you chose to take that route it may slow the selling process of your real estate. If you are eager to sell your home, you may want to keep the deposit and continue looking for another buyer.

If a married couple separates, could they back out of a real estate contract prior to closing?

The couple could back out of the real estate contract but would probably lose their deposit and may even face a lawsuit for breach of contract. However, if there was a stipulation in the contract that states the coupe could back out of the real estate contract if they were to separate, they could back out without any penalties.

Most sellers would probably understand if a couple was to back out due to a separation, however there may still be legal issues to deal with for the breach of contract. The couple should read the real estate contract carefully to determine if there are any clauses that may assist them in backing out of the contract without facing penalties.

After accepting a buyer's offer, we signed a real estate contract to sell our home. My husband is having unexpected panic attacks related to this sale and wants to back out. What can we do?

Generally, panic attacks or last minute jitters wouldn't justify backing out of a real estate contract. To avoid any legal issues, you may want to take the real estate contract to an attorney. The attorney may find some loop hole in the contract that would allow you to back out of the contract.

When buying or selling real estate, many people rush into signing a real estate contract before taking the time to carefully review the stipulations within the contract. Before you sign a real estate agreement, you should ask an Expert for assistance e in understanding the contract language.

Published on: July 16, 2013