Define Express Contract Real Estate

When it comes to real estate transactions, there are several types of contracts that can be used to formalize the deal. Among these, an express contract is one of the most common. In this article, we`ll define what an express contract is in real estate and explore its key features.

An express contract is a legal agreement between two or more parties that expressly outlines the terms and conditions of a real estate transaction. Unlike an implied contract, which is based on the actions and behavior of the parties involved, an express contract is created through explicit communication.

Express contracts can take many forms in real estate, such as purchase agreements, lease agreements, listing agreements, and more. These contracts can be either oral or written, but it`s generally a good idea to have them in writing to avoid any misunderstandings or disputes down the line.

One of the key features of an express contract is that both parties must agree to the terms laid out in the contract. This means that there is a meeting of the minds, where both parties understand and accept the terms and conditions of the agreement. This agreement is usually reached through negotiation, and the contract is only valid if both parties have the capacity to enter into the agreement voluntarily.

Another important feature of an express contract is that it is legally binding. This means that if one party breaches the contract by not fulfilling their obligations, the other party may seek legal remedies for the breach. These remedies can include monetary damages or specific performance, where the court orders the breaching party to perform their obligations as outlined in the contract.

In real estate, express contracts are used in a variety of situations. For example, a purchase agreement is an express contract that outlines the terms of a home sale, including the purchase price, closing date, and any contingencies. A lease agreement is another example of an express contract, and it outlines the terms of a rental agreement between a landlord and tenant.

In conclusion, an express contract is a legally binding agreement between two or more parties that explicitly lays out the terms and conditions of a real estate transaction. Whether you are buying or selling a property, it`s important to understand the terms of any contract you sign and to ensure that you have the capacity to enter into the agreement voluntarily. With these key features in mind, you can navigate the real estate market with confidence and protect your interests throughout the transaction.