What can you learn from different types of real estate contracts?

1 Purchase agreement

A purchase agreement is the most common type of real estate contract. It outlines the essential details of the sale, such as the property description, the purchase price, the closing date, the contingencies, and the signatures of the parties. A purchase agreement is legally binding once it is accepted by both parties and can only be modified or canceled by mutual consent or under certain conditions. A purchase agreement can help you secure the property you want, lock in the agreed price, and specify the conditions for the transaction.

2 Lease agreement

A lease agreement is a type of real estate contract that governs the rental of a property. It specifies the terms and conditions of the lease, such as the duration, the rent amount, the security deposit, the maintenance responsibilities, and the rights and obligations of the landlord and the tenant. A lease agreement is legally enforceable once it is signed by both parties and can only be terminated or changed according to the contract provisions or the applicable laws. A lease agreement can help you establish a clear and fair relationship with your landlord or tenant, avoid disputes, and protect your rights.

3 Option agreement

An option agreement is a type of real estate contract that gives the buyer the right, but not the obligation, to purchase a property within a specified period and at a predetermined price. The buyer pays a non-refundable fee to the seller for this option, which can be credited toward the purchase price if the buyer exercises the option. An option agreement is not a binding contract to buy or sell, but rather a contract to enter into a contract in the future. An option agreement can help you secure a property at a favorable price, hedge against market fluctuations, and buy time to arrange financing or conduct due diligence.

5 Assignment contract

An assignment contract is a type of real estate contract that transfers the rights and obligations of one party to another party. It is often used by wholesalers who find a property at a low price, enter into a purchase agreement with the seller, and then assign their contract to an end buyer for a higher price. The wholesaler collects an assignment fee from the end buyer and does not take title or possession of the property. An assignment contract can help you profit from a property without investing money or time, find a buyer quickly, and avoid liability or risk.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?