when must a seller provide earnest money when writing a purchase agreement
Real estate contract
Identify the parties : The full name of the parties must be on the contract . In a sales contract , the parties are the seller ( s ) and buyer ( s ) of the real estate , who are often called the principals to distinguish them from real estate agents , who are effectively their intermediaries and representatives in negotiation of the price . If there are any real estate agents brokering the sale , they are typically listed also as the real estate brokers / agents who would earn the commission from the sale . Identify the real estate ( property ) : At least the address , but preferably the legal description must be on the contract . Identify the purchase price : The amount of the sales price or a reasonably ascertainable figure ( an appraisal to be completed at a future date ) must be on the contract . Include signatures : A real estate contract must be entered into voluntarily ( not by force ) , and must be signed by the parties . Have a legal purpose : The contract is void if it calls for illegal action . Involve Competent parties : Mentally impaired , drugged persons , etc. can not enter into a contract . Contracts in which at least one of the parties is a minor are voidable by the minor . Reflect a meeting of the minds : Each side must be clear and agree as to the essential details , rights , and obligations of the contract . Include Consideration : Consideration is something of value bargained for in exchange of the real estate . Money is the most common form of consideration , but other consideration of value , such as other property in exchange , or a promise to perform ( i.e. a promise to pay ) is also satisfactory .
Identify the parties : The full name of the parties must be on the contract . In a sales contract , the parties are the seller ( s ) and buyer ( s ) of the real estate , who are often called the principals to distinguish them from real estate agents , who are effectively their intermediaries and representatives in negotiation of the price . If there are any real estate agents brokering the sale , they are typically listed also as the real estate brokers / agents who would earn the commission from the sale . Identify the real estate ( property ) : At least the address , but preferably the legal description must be on the contract . Identify the purchase price : The amount of the sales price or a reasonably ascertainable figure ( an appraisal to be completed at a future date ) must be on the contract . Include signatures : A real estate contract must be entered into voluntarily ( not by force ) , and must be signed by the parties . Have a legal purpose : The contract is void if it calls for illegal action . Involve Competent parties : Mentally impaired , drugged persons , etc. can not enter into a contract . Contracts in which at least one of the parties is a minor are voidable by the minor . Reflect a meeting of the minds : Each side must be clear and agree as to the essential details , rights , and obligations of the contract . Include Consideration : Consideration is something of value bargained for in exchange of the real estate . Money is the most common form of consideration , but other consideration of value , such as other property in exchange , or a promise to perform ( i.e. a promise to pay ) is also satisfactory .