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Quick Facts — Real Estate Contract Lawyers

What is a Real Estate Contract?

A real estate contract is a legally binding document between two or more parties participating in a purchase and sale, exchange, or transfer of real estate. It outlines the expectations of the homebuyer and seller. Real estate contracts need to be in writing to be enforceable. A real estate contract generally covers terms of finance, seller assist, home inspection, fixture and appliances, closing date, sale of existing home, etc.

Here is an article about real estate contracts.

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How Real Estate Contracts Work

A real estate contract works in three main steps:

  1. An official offer form is created by the homebuyer’s agent and submitted to the seller. This initial offer will outline the description of parties involved, the property details, purchase price offer, earnest money deposit, closing costs and closing date.
  2. Upon receiving this initial offer, the seller now accepts, rejects or counters the offer. The counter could include proposed modifications or negotiated terms such as purchase price, closing costs, contingency, etc.
  3. Once both parties accept and sign the contract, it becomes a legally binding contract.

Here is an article on how to decide on the best offer.

Key Terms Found in Real Estate Contracts

In order to understand a real estate contract, you need to know what the key terms and components in the contract mean. Here are some common terms used in real estate contracts:

  1. Price: Given that any real estate transaction is a significant investment for the buyer, price is the first thing the parties consider. You can ask their real estate agents for a comparative market analysis (‘ comparables ’) to determine whether the current price is above or below the market value. Chances are that you will need to take out a mortgage for purchasing real estate (unless you are financially secure enough to make an all-cash offer). Before drawing up the offer, you need to research your interest rate for financing based on your credit score . Once the offer is made and if you have to back out, the seller will typically be able to keeps the earnest money. If you are using a loan to finance the deal, you will need to mention it on your contract.
  2. Riders: Riders or addendums allow changes to the real estate contract based on special circumstances. Some common riders include disclosing rules of homeowner’s associations or a Federal Housing Administration rider specifying that the buyer would secure a mortgage via FHA.
  3. Contingencies: Contingencies are the requirements that need to be met before closing. Some examples of contingencies include obtaining a loan to finance the purchase, buyer selling their current home, repairing any issues found during home inspection and house appraisal being equal to or higher than the sale price. Common terms in real estate contracts include:
  4. Seller assist: For instance, if you want the seller to pay for some of the closing costs, you can ask for seller assist in your contract. It works similarly to credit where the seller absorbs some of the closing costs.
  5. Title search: A title search is the process of going through public records to find the property's rightful legal owner, or any existing liens, encumbrances, or other claims, in order to avoid any third-party claims on the property.
  6. Recording fees: A recording fee is charged by a government agency for recording the purchase or sale of any real estate.
  7. Earnest money: Earnest money is the payment made to the seller to show good faith at the time of signing the contract.
  8. Deed of trust: A deed of trust is a security instrument between a lender and a borrower is an alternative to a mortgage which allows parties to give the property to a neutral third party while the debt is paid off. They are used in some states instead of a mortgage to secure a loan, which allows the lender to foreclose on the property if there is a default.
  9. Mortgage Note: A mortgage note contains all terms of mortgage, signed at the time of closing.
  10. Closing costs: Closing costs are additional fees needed to transfer the home to the buyer, beyond the purchase price. The contract should specify which party would be responsible for different closing costs such as escrow fees, title search fees, title insurance, notary fees, recording fees, transfer tax, etc.
  11. Considerations: Considerations mean anything of value exchanged in the transaction, generally referring to money.
  12. The signatures: No contract is legally binding before it is signed by both parties. Once the buyer has signed the contract but decides to pull out of the contract, the earnest money can be forfeited by the seller.

Here is an article of common contingencies in a real estate contract.

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Types of Real Estate Contracts

There are four types of real estate contracts:

  1. Purchase agreement contract: A purchase agreement is between the seller and the buyer outlining terms and conditions of the purchase. This can be one of the following three kinds:
  2. State/association purchase agreement: State/association purchase agreement is used by a real estate agent to draft a purchase agreement contract using local realtor guidelines.
  3. General purchase agreement: General purchase agreement is a condensed version of the State/association purchase agreement for when a buyer buys directly from a seller instead of a real estate agent.
  4. Property-specific purchase agreement: Property-specific purchase agreement is used for non-traditional properties.
  5. Lease agreement: A lease agreement between a tenant/renter and an owner of property includes details of renting the property, responsibilities and payment dates.
  6. Real estate assignment contract: A real estate assignment contract transfers a buyer or seller’s interest in a property, and is typically used to buy rights to a property by an investor with the intention of assigning the contract to a different buyer at a higher price.
  7. Contract for deed: A contract for deed agreement is used for buying property without going to a mortgage company. The buyer pays monthly payments and the deed is turned over when all payments have been made.
  8. Power of attorney: A power of attorney document assigns one person the power to act for another. In a real estate transaction, this could give one person the right to sell, purchase, refinance, manage, perform transactions, etc., depending on the specific terms of the power of attorney document.

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Who Creates Real Estate Contracts?

Typically, the buyer’s real estate agent would prepare a real estate contract if they are licensed to practice law. Otherwise, the buyer can have them drawn by a real estate lawyer.

You can find templates online to draw up your own real estate contract. However, it is advised to consult a real estate professional to ensure a smooth deal. If you have questions about drafting a real estate purchase agreement, it is best to consult a real estate lawyer who will have knowledge about the laws and requirements for lease agreements in your state.


Here is an article on roles and responsibilities of real estate lawyers and agents.

Getting Help With a Real Estate Contract

Do you have any questions about real estate contracts and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from lawyers who specialize in real estate law.

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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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Corporate, M&A & Securities Lawyer | Managing Attorney, DP Counsel PLLC Practice Areas: Business Formation | Commercial Contracts | Contract Drafting & Review | Mergers & Acquisitions | Venture Capital | Securities Offerings | Franchise Law | Employment & Equity Compensation | Intellectual Property | Cross-Border Transactions About/Bio: I represent companies, investors, and fund sponsors in corporate transactions, commercial contracting, and private securities matters, from entity formation and early-stage financings to acquisitions, exits, and ongoing strategic counsel. As Managing Attorney of DP Counsel PLLC, I help clients structure transactions clearly, allocate risk thoughtfully, and move deals forward with documentation that is practical, enforceable, and aligned with business objectives. My practice includes both day-to-day commercial matters and more complex transactional work, including venture financings, private offerings, M&A deals, fund-related documents, and cross-border structuring. What I Do: Corporate & Commercial • Entity formation and structuring for corporations, LLCs, and limited partnerships • Operating agreements, shareholder agreements, and governance documents • Commercial contract drafting, review, and negotiation • Vendor, distribution, manufacturing, SaaS, and licensing agreements • Employment, consulting, confidentiality, and equity compensation agreements • Outside general counsel support for growing companies Securities & Private Capital • Private offerings under Regulation D and Regulation S • Private placement memoranda, subscription agreements, and investor documents • SAFE, convertible note, and priced equity financings • Venture capital and private fund formation matters • Fund governing documents and offering document packages • Securities law analysis for private capital raising transactions Mergers & Acquisitions • Letters of intent and term sheets • Stock purchase, asset purchase, and merger agreements • Due diligence coordination and transaction support • Disclosure schedules, closing documents, and post-closing matters • Earnouts, rollover equity, indemnity structures, and related deal terms • HSR, CFIUS, and related regulatory issue spotting for qualifying transactions Digital Assets & Emerging Technologies • Federal-law digital asset and token securities analysis • Entity structuring for blockchain and Web3 ventures • Digital asset fund and operating structures • AML/KYC documentation support and regulatory issue spotting Franchising • Franchise Disclosure Documents (FDDs) • Franchise agreements • Master franchise and area development agreements • Franchise structuring and registration coordination Real Estate Transactions • Commercial real estate acquisitions and dispositions • Real estate joint ventures and syndications • Commercial lease drafting and negotiation • Real estate investment structures and related offering documents Cross-Border & International • U.S. market entry and entity structuring for international clients • Delaware and multi-entity holding structures • Cross-border transaction planning and documentation • Coordination with foreign counsel and tax advisors on cross-border matters Why Clients Hire Me: • Big-law-level drafting with boutique responsiveness • Practical, business-focused advice grounded in execution reality • Clear scoping and transparent fee arrangements • Experience across financings, acquisitions, fund formations, and cross-border transactions Typical Projects: • Contract drafting and negotiation • Entity formation and governance packages • Private offering document suites • Venture financing documentation • M&A transactions from LOI through closing • Fractional or outside general counsel support Industries Technology | SaaS | FinTech | Digital Assets | E-commerce | Healthcare | Real Estate | Food & Beverage | Professional Services

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At DACC.Law, we deliver high-quality, practical legal solutions specifically for entrepreneurs, real estate investors, and growing businesses. With more than 25 years of experience, our firm handles everything from contract drafting and review to entity formation, deal structuring, and risk mitigation. Clients rely on us for clear guidance on regulatory compliance, navigating complex transactions (including multifamily, landlords, developers), resolving disputes efficiently, and protecting their business interests. We combine deep legal expertise with a hands-on, results-oriented approach so you can move forward with confidence.

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I’m Grace E. Carlson, an intellectual property & transactional attorney, founder of aTMospheric IP, LLC, with over 6 years of combined law firm and in-house experience. I help businesses, startups, creators, and entrepreneurs draft, review, and negotiate commercial contracts while protecting their brands and innovations. My expertise includes SaaS agreements, MSAs, NDAs, licensing contracts, vendor and partnership agreements, as well as comprehensive trademark strategy, copyright matters, AI-related IP issues, and technology transactions. I’ve supported global companies including Robinhood, Iron Mountain, and Microsoft, and provided flexible in-house counsel through Axiom Law across fintech, SaaS, consumer goods, and data center industries. Known for translating complex legal issues into clear, practical solutions, I focus on delivering contracts that reduce risk, support go-to-market strategies, and scale with your business. Whether you need a custom SaaS agreement, trademark-integrated contracts, or AI compliance review, I provide responsive, business-minded counsel. Bar Admissions: Washington (2020) & Oregon (2021) J.D., Seattle University School of Law Let’s get your contracts and IP protections done right — efficiently and effectively.

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Real Estate

Real Estate Contract

Georgia

Asked on Mar 24, 2022

How many years does a quick claim become effective?s

Number of years for quick claim to be effect ive

Meghan T.

Answered Mar 29, 2022

A quit claim deed is effective upon execution so long as the deed is dated as of the date of signature. Execution means that the deed is signed, in front of a witness and a notary. The witness and notary must also sign the deed. Finally, the deed must be recorded. This means that the deed must be submitted to the Superior Court recording office of the County in which the property sits. Please let me know if you have any questions. Thanks, Meghan K Thomas

Read 1 attorney answer>

Real Estate

Real Estate Contract

New York

Asked on Dec 26, 2021

Can you purchase or refinance under a land contract?

I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.

Jane C.

Answered Jan 11, 2022

I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.

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Real Estate

Real Estate Contract

Illinois

Asked on Mar 27, 2022

what is better to buy land or rent for construction in US?

we are a construction company from Ukraine, we are planning to build a cottage town in the USA

T. Phillip B.

Answered Apr 5, 2022

I suppose it doesn't matter if you have the lease giving you permission and the lease is long enough to justify the building expense when you won't own it. But I'd buy the land so you could eventually sell the property with the building on it.

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Real Estate

Real Estate Contract

Georgia

Asked on Mar 18, 2022

WHAT ARE YOUR FEES TO PERFORM QUIT CLAIM DEED COMPLETE BUTTS COUNTY GEORGIA 30233

SON AND EX

Meghan T.

Answered Mar 29, 2022

Hi. The cost for my practice to prepare a Quit Claim Deed is $99. The Cost for me to handle the closing is $250 plus recording fees. These costs apply for any county within the state of Georgia. Let me know if you have any more questions. Meghan K Thomas

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