What Is a Sales Contract?
A sales contract is a binding agreement setting the terms under which a seller will sell and a buyer will buy. In real estate it is the purchase and sale agreement that governs the entire transaction — price, what is included, contingencies, deadlines, and how and when title will transfer. It is the document everything at closing flows from.
Key Terms in a Real Estate Sales Contract
- The purchase price and the earnest money deposit
- Contingencies — financing, inspection, appraisal, and the right to cancel
- The closing date and possession terms
- What conveys with the property, and the type of deed and title to be delivered
Florida Real Estate Contracts
Most Florida residential deals use a standardized form (such as the FAR/BAR contracts), which the parties fill in and modify. Because these contracts usually make time of the essence, the deadlines are strict — missing an inspection or financing deadline can forfeit rights or the deposit. Sale contracts must meet basic contract requirements (offer, acceptance, consideration) and, under the Statute of Frauds, a contract for the sale of real property must be in writing and signed to be enforceable. Reviewing the terms carefully — ideally with counsel — protects both buyer and seller.
Related Terms
- Offer and Acceptance — How the contract forms
- Contingency — Conditions in the contract
- Earnest Money — The buyer's deposit
Barnes Walker Real Estate
Barnes Walker's real estate attorneys draft, review, and enforce purchase and sale contracts for Florida buyers and sellers. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC