Elements of a Real Estate Contract

What Are Elements of a Real Estate Contract?
By Pierre Mouchette | Real Property Experts LLC

​The critical elements of a binding real estate contract are:

Offer and Acceptance - original signatures with no alterations to the contract.  If the original offer is marked-up and initialized by the party receiving it, then signed, this is a counter-offer.  Any final agreement should be reduced to the last writing and signed by both parties.

Consideration - a bargained-for exchange of something of value.   Money is the most common form of consideration.

In writing - a real estate contract must be in writing, and must:

• Identify the parties - the full name of the parties must be on the contract
• Identify the property - must contain the address and the legal description
• Purchase price - the amount of the sales price
• Signatures - the contract must be signed to be enforceable
• Legal purpose - must be for a legal purpose
• Competent parties - minors, mentally impaired, drugged persons, cannot enter into a contract
• Meeting of the minds - each side must be clear as to the essential details, rights, and obligations of the contract