7 types of real estate contracts

Posted December 11, 2008 by Bernz

Thinking of selling or buying property? Here is an overview of some real estate contracts you should become familiar with.

locationsListing agreements – This is where a property owner and real estate broker have a written contract for the broker to find a buyer or leaser for the owner’s property.

Buyer representation agreements – A written contract in which the buyer employs the broker to locate a property.

Purchase and sale agreements – This is a written contract between a buyer and seller. It contains all the details of the price and closing.

Land contracts – other common names for this are: real estate contract, installment sales contract or contract for deed. This is a contract in which the buyer purchases the seller’s property on an installment basis.

Leases – Leases do two things. First, as a conveyance, a lease is an agreement that transfers the right of possession and use of real property from the property owner to the tenant. As a contract the lease sets forth the terms of property occupancy, such as the amount of rent, when it is due, and for how long.

Escrow instructions – These explain the obligations of the buyer and purchase parties that must be filled before the sale can be finalized.

Option agreements – This is an agreement that creates the right to buy, sell, or lease property for set price within a certain time frame.


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One Response to “7 types of real estate contracts”

  1. Ned Carey Says:
    February 28th, 2009 at 10:16 pm

    I never really thought about how many different contracts we use in real estate. One more you could ad would be an assignment contract.

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