{"id":7251,"date":"2023-10-02T01:47:03","date_gmt":"2023-10-01T23:47:03","guid":{"rendered":"https:\/\/albermoya.com\/?p=7251"},"modified":"2023-10-02T01:55:43","modified_gmt":"2023-10-01T23:55:43","slug":"real-estate-contracts","status":"publish","type":"post","link":"https:\/\/albermoya.com\/en\/real-estate-contracts\/","title":{"rendered":"Real Estate Contracts: Definition, Classification and Validity"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Definicion_del_Contrato_Contract_Defined\" >Contract Defined<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Estado_del_Contrato_Contract_Status\" >Contract Status<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Validez_del_Contrato_Contract_Validity\" >Contract Validity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Conveyance_Contract_Requirements_Requisitos_del_Contrato_de_Transferencia\" >Conveyance Contract Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Offer_Counteroffer_Acceptance\" >Offer \/ Counteroffer \/ Acceptance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Asignacion_de_Contratos_Contract_Assignment\" >Contract Assignment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Preparacion_de_Contratos_Contract_Preparation\" >Contract Preparation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Clasificaciones_de_Contratos_Contract_Classifications\" >Contract Classifications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Terminacion_de_Contratos_Termination\" >Termination of Contracts (Termination)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/albermoya.com\/en\/real-estate-contracts\/#Incumplimiento_y_Remedios_Breach_Remedies\" >Breach &amp; Remedies<\/a><\/li><\/ul><\/nav><\/div>\n<p>Contracts are the backbone of transactions. Whether you are buying a home, selling a property, or signing a lease agreement, contracts are essential in establishing the terms and conditions of the negotiation. In this article, we will explore in detail the key concepts related to contracts in real estate, as used in the original language of the industry in the United States.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Definicion_del_Contrato_Contract_Defined\"><\/span><strong>Contract Defined<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A contract is an agreement between two or more parties who have reached a &quot;meeting of the minds&quot; and have agreed to do (or refrain from doing) some act. A valid contract is legally binding and meets certain requirements of contract law. If a contract does not meet these requirements, it is invalid and the parties cannot look to a court of law to enforce its provisions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Estado_del_Contrato_Contract_Status\"><\/span><strong>Contract Status<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Contracts can have different statuses, including:<\/p>\n<p><strong>Valid (Valid):<\/strong> Complies with all legal requirements.<\/p>\n<p><strong>Valid but unenforceable:<\/strong> Some oral contracts may be valid but not enforceable; that is, if they are executed, they cannot change the legal result.<\/p>\n<p><strong>Null (Void):<\/strong> It is invalid and cannot be legally enforced.<\/p>\n<p><strong>Voidable:<\/strong> May be terminated due to subsequent discoveries; if executed, they cannot change the legal outcome.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Validez_del_Contrato_Contract_Validity\"><\/span><strong>Contract Validity<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>For a contract to be valid, it must meet certain requirements:<\/p>\n<p><strong>Competent Parties:<\/strong> The parties must be of legal age, mental capacity, and legitimate authority to enter into a contract.<\/p>\n<p><strong>Mutual Consent:<\/strong> There must be a clear offer and unequivocal acceptance with a common understanding between the parties.<\/p>\n<p><strong>Valuable Consideration:<\/strong> There must be an exchange of valuable consideration in return for performance by the other party. \u201cLove and affection\u201d is not enough; it must be a real value.<\/p>\n<p><strong>Legal purpose:<\/strong> The purpose, intent and content of the contract must be legal; If it is illegal, the contract is void and cannot be entered into in violation of the law.<\/p>\n<p><strong>Voluntary and Good Faith (Voluntary, good faith):<\/strong> The contract must be entered into without duress, coercion, fraud or misrepresentation.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"yc-block aligncenter\" src=\"https:\/\/storage.googleapis.com\/media1.yescourse.org\/f\/LVDpz\/e\/ndajHEASkaEsfXD8FLGKcj.png\" width=\"398\" height=\"311\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conveyance_Contract_Requirements_Requisitos_del_Contrato_de_Transferencia\"><\/span><strong>Conveyance Contract Requirements<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When it comes to real estate transfer contracts, such as purchase and sale contracts, leases or financing agreements, there are specific requirements that must be met:<\/p>\n<ul>\n<li>They must be in writing.<\/li>\n<li>They must contain a legal description of the property involved.<\/li>\n<li>They must be signed by one or more parties.<\/li>\n<\/ul>\n<p>However, there is one important exception: under the Statute of Frauds, leases of one year or less can be oral and still be legally enforceable.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Offer_Counteroffer_Acceptance\"><\/span><strong>Offer \/ Counteroffer \/ Acceptance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Offer (Offer):<\/strong> It is a statement of intent to enter into a contract. It must contain all intended terms and must generally be in writing. The offer expires at a \u201creasonable time\u201d or at a specified date and time.<\/li>\n<li><strong>Acceptance:<\/strong> It is an unequivocal and manifest agreement with the offer. There should be no changes to the offer. Ideally, it should be signed and preferably dated.<\/li>\n<li><strong>Completed Contract:<\/strong> It occurs when acceptance is communicated to the offeror. If communicated by mail, the offer is considered communicated when sent.<\/li>\n<li><strong>Counteroffer (Counteroffer):<\/strong> It involves new terms or amendments to an offer received. The original offer is void in this case.<\/li>\n<\/ul>\n<p><strong>Revoking an offer:<\/strong> It can be done at any time before the offeror communicates his acceptance.<\/p>\n<p><strong>Termination of an Offer:<\/strong> It may occur due to acceptance, rejection, revocation, expiration, counteroffer, death or insanity of either party.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Asignacion_de_Contratos_Contract_Assignment\"><\/span><strong>Contract Assignment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In some cases, contracts may be assignable unless expressly prohibited or the contract is for personal services (such as real estate listings).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Preparacion_de_Contratos_Contract_Preparation\"><\/span><strong>Contract Preparation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Preparation of contracts may be restricted unless you are licensed as an attorney or a party to the contract. Real estate agents should be aware of contract preparation restrictions in the states where they operate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Clasificaciones_de_Contratos_Contract_Classifications\"><\/span><strong>Contract Classifications<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Contracts can be classified in several ways:<\/p>\n<ul>\n<li><strong>Oral vs. written (Oral vs. written):<\/strong> Oral contracts may not be legally enforceable in certain circumstances.<\/li>\n<li><strong>Express vs. implicit (Express vs. implied):<\/strong> The contracts <em>Express<\/em> contain all expressly agreed terms, while contracts <em>implied<\/em> They arise from actions or circumstances and are not established in writing.<\/li>\n<li><strong>Bilateral vs. unilateral (Bilateral vs. unilateral):<\/strong> Bilateral contracts involve promises by both parties to perform, while contracts <em>unilateral<\/em> require one party to comply only if the other party does so.<\/li>\n<li><strong>Executed vs. executable (Executed vs. executory):<\/strong> The contracts and<em>xecuted<\/em> have been fully fulfilled, while the contracts <em>executory<\/em> They still have pending actions.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Terminacion_de_Contratos_Termination\"><\/span><strong>Termination of Contracts (Termination)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Contracts may terminate due to a variety of causes, including performance, non-feasibility, mutual agreement, termination during the cooling off period, revocation, abandonment, expiration of time, invalidity of the contract or breach of the contract. contract.<\/p>\n<ul>\n<li><em>performance<\/em><\/li>\n<li><em>infeasibility<\/em><\/li>\n<li><em>mutual agreement<\/em><\/li>\n<li><em>cooling-period rescission<\/em><\/li>\n<li><em>revocation<\/em><\/li>\n<li><em>abandonment<\/em><\/li>\n<li><em>time lapse<\/em><\/li>\n<li><em>invalidity of contract<\/em><\/li>\n<li><em>breach of contract<\/em><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Incumplimiento_y_Remedios_Breach_Remedies\"><\/span><strong>Breach &amp; Remedies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the event of a breach of contract, there are several possible remedies:<\/p>\n<ul>\n<li><strong>Termination (Rescission):<\/strong> Cancellation of the contract and return of deposits.<em>Cancel contract; return deposits<\/em><\/li>\n<li><strong>Forfeiture:<\/strong> The defaulting party gives up something under the terms of the contract.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <em>d<span style=\"font-size: 16px;\">efaulting party gives up something according to contract terms<\/span><span style=\"font-size: 16px;\">\u00a0<\/span><\/em><\/li>\n<li><strong>Liquidated damages:<\/strong> Damages that an injured party can claim as set forth in the contract.<em>Damages due to a damaged party as stated in contract<\/em><\/li>\n<li><strong>Suit for damages:<\/strong> Civil lawsuit for monetary damages that are not covered by the contract.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <em>Civil suit for money damages not covered by contract<\/em><\/li>\n<li><strong>Specific performance:<\/strong> Lawsuit to force a party to fulfill the promises of the contract.<em>Suit to force party to fulfill contract promises<\/em><\/li>\n<\/ul>\n<p>In summary, contracts play a critical role in the real estate industry in the United States, and understanding key concepts and requirements is essential to conducting successful transactions and protecting the rights of the parties involved. Whether you are buying, selling or leasing property, contracts are the foundation of these transactions and provide the legal structure necessary to ensure that agreements are followed.<\/p>","protected":false},"excerpt":{"rendered":"<p>Los contratos son la columna vertebral de las transacciones. Ya sea que est\u00e9 comprando una casa, vendiendo una propiedad o firmando un acuerdo de arrendamiento, los contratos son esenciales para establecer los t\u00e9rminos y condiciones de la negociaci\u00f3n. En este art\u00edculo, exploraremos en detalle los conceptos clave relacionados con los contratos en bienes ra\u00edces, tal [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[193,192,194,195],"class_list":["post-7251","post","type-post","status-publish","format-standard","hentry","category-novedades","tag-acceptance","tag-contratos","tag-counteroffer","tag-offer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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