What Is a Real Estate Contract?
A real estate contract is a binding written agreement for the purchase and sale of real property, setting out the price, terms, and conditions under which ownership will transfer from seller to buyer. It governs the entire transaction from acceptance through closing and is the document that all the closing steps flow from.
Essential Terms
- The parties and a clear description of the property
- The purchase price and earnest money deposit
- Contingencies — financing, inspection, and appraisal
- The closing date, the type of deed, and what conveys with the property
Florida Requirements and Practice
Under the Statute of Frauds, a contract for the sale of Florida real property must be in writing and signed to be enforceable. Most residential deals use a standardized form (such as the FAR/BAR contracts) that the parties complete and modify. Because these contracts typically make time of the essence, deadlines for inspections, financing, and closing are strict — missing one can forfeit rights or the deposit. Reviewing the contract carefully, ideally with counsel, protects both buyer and seller, since its terms control the parties' rights up to (and, through any survival clause, beyond) closing.
Related Terms
- Sales Contract — Another name for the purchase agreement
- Contingency — Conditions built into the contract
- Time Is of the Essence — Makes the deadlines strict
Barnes Walker Real Estate
Barnes Walker's real estate attorneys draft, review, and enforce purchase contracts for Florida buyers and sellers. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC