In Real estate business big amount transactions happen that’s why these transactions take place legally with signing forms by both parties. All transactions are properly documented because they can be a valid proof in case of fraud. Without valid form and documentation no real estate transaction is considered lawful. In real estate every transaction has its different forms and agreements which required to duly filling by both parties and witness of transaction. Proper documentation is must because it prevents disputes in future and if breach of contract found the guilty person will penalize as described in agreement. These documents also ensure that transaction is lawful and in the eyes of government.
There are different type of agreements and forms but some important listed below:
Disclosures: it is a form in which a seller gives all necessary information to buyer about the property he is buying. This is responsibility of buyer to make aware his client about advantage and disadvantages of property to prevent any legal action made by buyer because if you don’t provide a proper disclosure customer can sui you for this. A disclosure form may contain information about water availability, Neighborhood Nuisances, where property require repair and other you want to disclose.
Listing or brokerage agreements: Listing form is most popular contract which include the price of property, items available with property, commission and appliances and fixtures in the sale or not. One another contract between agent and buyer is called brokerage agreement. In which they explain that what type of services agent is going to provide in searching home and time allotted to him for his duties.
Purchase and sale agreements: P&S agreement is take place when deal becomes final with the mutual acceptance of both parties and price and term of purchasing become final. This document contain information about final price of property, Insurance type etc.
Termination: If any buyer feels that his agent is not working according to their desire and wants to cancel the transaction he can terminate transaction by giving termination form.
Lease or rental agreement: If you are renting your property without rental agreement then you definitely inviting a trouble for future. Law does not consider the oral promises because they prove nothing in court so written form is required.
Land contract: an agreement in which a buyer make payment towards full ownership for property, but with land a deed is made by owner until the full payment is not done.
Promissory note: It is a negotiable instruments widely used in business transactions. A payee wrote a promissory note and make written promise to clear his debt in given time. This note is saleable and unconditional.
These are some documents used in real estate business to make transaction legally sound.
An Agreement contains these elements:
Content used in agreement varies with its purpose for which it is used. But some common elements described below:
- Name of the both parties involved in transaction.
- Address of both parties, contact number, e-mail.
- Contract Date.
- Signature of concerned persons.
You can find these forms from agents of real estate or by visiting websites of real estate but make sure that forms are valid and legally approved. These all agreements are written in language that laymen can’t understand so service of power of attorney is required.
Power Of Attorney: Power of attorney is a document which defines the legal terms and important information about agreements and forms used in transaction. Power of attorney gives authorities to an agent or person to make decision. Law to make power of attorney is different in different states. Power of attorney is responsible to take care of keeping accurate data. Attorney can be a spouse, relative, any trusted friend and an adult child. Because power of attorney contains all legal information so it is to be given to a trust worthy person.
Notices: There are many type of notices available and have different results. Notice defined as facts commonly known by both parties and court that may take as evidence. Notice is legal concept by which parties are made aware about legal process that influences their duties and rights. Notice has many types as actual notice, implied notice, public notice and constructive notice.