What are Real Estate Contracts?

It is the embodiment of an agreement reached by the two parties involved in the commercial transaction, whatever nature it may be. By means of this contract, one part undertakes to do something on condition that the other part offers a payment, in this case of a financial nature.

In the real estate sector, as in others, there are different types of contracts. One example would be sale and purchase contracts, where we would speak of earnest money contracts, purchase options, private contracts, etc. Others would be lease contracts, for housing and real estate contracts, industrial contracts, seasonal leases, etc.

What is their importance?

Approaching a contract properly means establishing the terms of the contractual relationship in writing, so this way, it is totally clear for both parties, and in case of needing arbitration, it is under the protection of the laws and regulations in force.

If you are going to carry out a real estate transaction, you must take into account that  a contract is the best way to guarantee the fulfillment of what has been agreed upon by both parties. It is in your best interest that everything is well studied and tied through a contract, so to avoid any unpleasant surprise.

Generally, the conditions and clauses that are set out in these contracts are agreed by both parties. That usually avoids any problems that may arise; but, if it happens, the contract is there to play its role: it is a signed agreement, and it must be complied with.

As we have said, a real estate contract should reflect the obligations and responsibilities that, at the moment of signing, each of the parties acquires.