The Operative Words There: so Far
To be enforceable, a real estate contract must possess original signatures by the parties and any alterations to the contract must be initialed by all the parties involved. A different document called a deed is used to convey real estate. If the original offer is marked up and initialed by the party receiving it, then signed, this is not an offer and acceptance but a counter-offer. A real estate contract typically does not convey or transfer ownership of real estate by itself.
Often, the party making the offer prepares a written real estate contract, signs it, and transmits it to the other party who would accept the offer by signing the contract. As with all other types of legal offers, the other party may accept the offer, reject it (in which case the offer is terminated), make a counteroffer (in which case the original offer is terminated), or not respond to the offer (in which case the offer terminates by the expiration date in it). Before the offer (or counteroffer) is accepted, the offering (or countering) party can withdraw it. A counteroffer may be countered with yet another offer, and a counteroffering process may go on indefinitely between the parties.
The contract could also specify any personal property (non-real property) items which are to be included with the deal, such as washer and dryer which are normally detachable from the house. Riders (or addenda) are special attachments (separate sheets) that become part of the contract in certain situations. Although money is the most common consideration, it is not a required element to have a valid real estate contract. Utility meters, electrical wiring systems, fuse or circuit breaker boxes, plumbing, furnaces, water heaters, sinks, toilets, bathtubs, and most central air conditioning systems are normally considered to be attached to a house or building and would normally be included with the real property by default.
Contingencies are conditions which must be met if a contract is to be performed. But it is possible for a real estate contract not to have any contingencies. Most contracts of sale contain contingencies of some kind or another, because few people can afford to enter into a real estate purchase without them. Mortgage contingency – Performance of the contract (purchase of the real estate) is contingent upon or subject to the buyer getting a mortgage loan for the purchase. Contingencies that suspend the contract until certain events occur are known as “suspensive conditions”. Contingencies that cancel the contract if certain event occur are known as “resolutive conditions”.
