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What makes a property sale contract valid
What makes a property sale contract valid
Date: 2017-06-02
For an agreement to be considered a legally binding document, there are some key aspects that need to be in place, such as the fact that it must be a written document that is signed by both parties.
The agreement also needs to be made between two parties who have the legal contractual capacity to enter into such agreements. The parties involved, which in the case of an Offer to Purchase are the buyer and seller, need to reach consensus to enter into the agreement.
The agreement must also contain the name of each party, the agreed-upon purchase price and the subject of the sale, which would be the immovable property in a property transaction.
It is not necessary for the contract of sale to be embodied in one document - it can comprise two, namely the written, signed offer and the written, signed acceptance. However, if the contract has been split into two documents, each document must make reference to the other.
A valid contract provides protection to both the seller and the buyer. Having a written contract in place ensures that each party understands what is expected of them, and reduces the chance of disputes or misunderstandings further down the road.