A contract is a legally binding agreement between two or more competent parties to undertake or refrain from specific actions in exchange for consideration. In real estate, a valid contract typically includes essential elements such as an offer, acceptance, competent parties, consideration, lawful purpose, and documentation.
To execute a contract means to sign and implement it, formalizing the agreement between involved parties and potentially fully performing the terms of the contract.
A lease is a legal contract in which the entity entitled to the possession of real property (lessor) transfers those rights to another entity (lessee) for a specified period in exchange for payment called rent.
An option in real estate refers to the right to purchase or lease a property upon specified terms within a specified period.
The sales price is the amount of money required to be paid for real estate according to a contract, or previously paid. It can include cash payments and assumptions of existing mortgages.
