- Purchase and sale agreement
- Lease (with the option to purchase)
- Contracts for deed
- Power of attorney
Each type of contract has its own set of terms and conditions, so it’s important that you understand what you’re agreeing to before signing anything. A purchase and sale agreement is the most common type of contract used when buying or selling a home.
A lease with the option to purchase is another popular type of contract, especially for those who are looking to buy a home but are not yet ready to commit. This contract gives you the right to lease the property for a set period of time, usually one to three years, with the option to purchase it at the end of the lease.
There are also land contracts, which are often used when the buyer does not yet have the full purchase price of the property. With a land contract, the buyer makes regular payments to the seller until the purchase price is paid in full.
Whatever type of contract you’re using, be sure to read it carefully and ask your real estate agent or lawyer any questions you may have before signing. When you’re ready to purchase a home, you’ll likely enter into a contract with the seller.
The purchase contract will also include any contingencies that must be met in order for the sale to go through. For example, many purchase contracts are contingent on the buyer obtaining financing within a certain time frame.
Once both parties have signed the purchase contract, they are legally obligated to follow through with the sale. If the buyer backs out of the sale without meeting their contractual obligations, they may be sued by the seller.