Property Contract Template
Here is a good quality Property Contract Template that can help anyone to come up with a comprehensive property leasing contract or agreement. Nowadays property business is at its peak in many countries and investors prefer to invest their money in real estate rather than any other sector hence there comes a need for a read-made Property Contract Template to help them prepare a formal contract. While there are more or less standard terms that are mutually agreed upon by the parties in a property lease deal, still there might come a need for adding new terms of reference. This contract template can easily assist in such a situation as it has all the standard terms and you can only focus on customized terms while editing it.
This Property Lease Contract Template is created using MS Word so that anyone can easily edit it anywhere. It doesn’t matter how proficient you are with your computer skills, if you know how to write a letter in MS Word, you can easily edit this contract template and come up with a professionally drafted leasing contract. A real estate contract is an official document for the exchange or transfer of some property between two parties. Unlike many other contracts, this contract includes the sale, purchase, lease, or rental of the property. Also, it’s not uncommon that there are more than two parties involved in the contract and this agreement covers all of them. This contract can be prepared by one or both parties and once they have signed the papers, they exchange the contracts. The key element of these types of contracts is the date the contract is going to be valid and usually, that’s the date when the property is legally transferred to the new owner.
Here is a preview of this Property Contract Template created using MS Word,
Essential Elements to include in a Property Contract:
- Legal purpose:
a contract can’t exist if it’s for an illegal purpose or if one of the parties is involved in some wrong act. The key element of a property contract is to make a deal legal so that either party can use it as evidence in a dispute or misunderstanding.
- Legally competent parties:
both parties should be legally competent when they enter into an agreement. If any of the parties doesn’t meet the requirements to enter into a contract according to local law, the contract won’t be considered valid in court.
- Offer and acceptance:
it’s also very important that the contract shows what the client has offered and what the dealer wanted. It’s not just that the dealer always agrees to the offer the client made and vice versa. So when a party offers something, the other changes it according to his own needs and benefits, and then with mutual talk, they agree to common conditions.
consideration is the offer that the dealer will get from a deal. It could be money, services, or even goods in exchange for the property he sold or purchased.
- Validity of the contract:
this provides the starting and ending date of the contract to make it clear for each party so that once the contract is valid, they don’t do any violations.
How to prepare a Property Contract:
- Buying or selling a property is not a small or usual thing that you do every day. This involves a lot of consideration and going through a number of legal processes. The first thing to prepare a property contract is to get a legal document to write the agreement. This document is also called stamp paper and you can get it from your attorney or local real estate department.
- Put the names of both parties i.e. dealer and purchaser on the contract along with a clear title for the property the contract involves such as house, shop, or farmhouse.
- Provide the offer you made to purchase the property and which the dealer has accepted. You are required to provide the actual amount in numbers and digits.
- Authorize the property by an inspector to check for any damages or faults. Once he has approved the property, get his signature on the contract too.
- If there are any witnesses to the deal, ask them to provide their names and contact information on the contract along with their signatures. In case something goes wrong or a dispute comes up, these witnesses will help both parties to represent a case in court.
- Both dealer and buyer are required to put their signature at the bottom of the contract and put their thumb impression too. This makes it legal, and authorized and binds both parties to act according to the clauses they agreed to.