Buying or selling a house in Pennsylvania is an important decision for many people. With that in mind, it’s wise to learn about the various types of real estate contracts you might end up signing. Here’s a closer look at the different types of real estate contracts and their purposes.
Purchase agreements
Otherwise known as a sales contract, a purchase agreement is one of the most common types of real estate transactions. This agreement is between the seller and buyer of a property. Here, you’ll find the usual terms of a standard real estate contract, including but not limited to:
- Describing the property
- Closing date and costs
- Who’s responsible for expenses
- Contingencies
Lease agreements
Another common type of real estate contract is a lease agreement that’s between property owners and those leasing this building. These agreements list monthly rates, security deposits (if necessary), and payment dates.
Real estate assignment contract
While not as common as a lease or purchase agreement, a real estate assignment contract is primarily for people investing in distressed properties. A real estate assignment contract is very similar to a purchase agreement. The main difference is that an investor includes a section that lists their intent to assign a property to someone else.
Power of attorney
Another type of contract in the world of real estate is a power of attorney document. With this document, an attorney has the power to sign a real estate contract for you if you’re away or incapacitated. A power of attorney document can be great for someone who owns many properties.
There are several popular types of real estate contracts. By understanding these contracts, you can have the assurance that you’re entering into the right agreement.
