7 types of real estate contracts

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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This entry was posted on Thursday, December 11, 2008 at 1:20 pm and is filed under Investing in Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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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