Contract Formation and Disputes
Real Estate Contract Formation & Disputes
Real estate contracts are at the heart of every successful real property deal. Perhaps you are looking for an attorney to develop real estate contracts and help you understand the ins and outs of contract law. At BPE Law, we focus on providing high-quality legal counsel and a wide range of services to our clients. Our mission is to offer you efficient, cost-effective service.
Comprehensive Real Estate Contract Law Services
Whether you are an experienced investor or a first-time seller, you know that contract formation is an essential part of the real estate sales process. Without a solid contract, you leave yourself open to lawsuits. If you are buying property, having a solid contract ensures that you are protected throughout the purchasing process and that you have legal recourse in case the property you purchase has a serious defect that the seller did not disclose. Your BPE Law attorney can guide you through the process of contract formation whether you are selling or buying a property.
Real Estate Contract Formation
Before you begin work with your BPE Law attorney, it’s important that you understand the areas of real estate that contract law covers. Keep in mind that you’ll need help with contract formation anytime you buy or sell a property. If you intend to lease or rent a property, you will use a different kind of contract called a lease agreement. Of course, we can also help you to prepare lease agreements.
Essential Steps in Contract Formation
The contract formation process is made up of several steps. Before a contract can be drafted, your lawyer will gather essential information about the property and all buyers and sellers. The information gathered will include:
- The names of the involved parties.
- A description of the real estate in question.
- The purchase price.
- Special mention of any contingencies.
- Signatures of all involved parties.
A real estate contract is a legally enforceable document. It is absolutely essential to have an attorney complete contract formation to ensure that the contract protects the rights of all parties involved.
Using Contract Formation to Protect Assets
One of the chief purposes of contract formation is to protect the assets of both buyers and sellers. In the simplest sense, contracts are used to protect both parties by ensuring that the deeds to properties are not transferred unless payment for the property is received and the seller represented the property fairly. The contract may also include other contingencies. Some contingencies must be met before a contract can be finalized, while other contingencies void an enforced contract if they are not met. Some of the most common contingencies included in real estate contracts are:
- Mortgage contingencies that prevent the buyer from taking possession of the property until an approved mortgage has been secured.
- Appraisal contingencies that finalize the transfer of a property only if an appraiser determines that the asking price for the property is at or below fair market value.
- Inspection contingencies that prevent the sale of the property until it has been cleared by a building inspector.
- An another sale contingency that only allows the sale of one property if another property is sold. This is generally written into contracts when the sale of one property will finance the purchase another property.
- A 72-hour kick-out contingency, which gives the seller 72 hours to void the deal and sell the property to another party.
Real Estate Contract Disputes
Real estate contract disputes can result in lengthy court battles if they are not handled properly. At BPE Law, we assist our clients by offering a variety of methods by which to solve such disputes. In some cases, we may recommend that clients use arbitration to settle real estate contract disputes. The arbitration process will allow you to avoid going to court. Instead, you’ll work with a qualified mediator to reach an agreement with the other parties involved in the contract dispute.
In other cases, it may be necessary to pursue litigation in order to handle real estate contract disputes. This is often an effective method of dealing with contract disputes that result from a significant defect in the property or gross dishonesty on the part of another party. Your BPE Law attorney can also handle new real estate contract formation after a contract dispute has been settled. Remember that a new, well-written contract can protect you from further contract disputes.
Professional Help with Contract Formation and Contract Disputes
If you are interested in securing contract formation services or need assistance dealing with contract disputes, please call us today at 916-966-2260.