Chapter 8 Real Estate Sales Contracts. __________________________________. The purpose of the real estate sales contract. is to allow time to ascertain that the parties can each perform the terms of the agreement which are written and signed promises to perform. Earnest Money Deposit.
This is a legal term which means the time limits set by the contract must be faithfully observed or the contract is voidable by the nondefaulting party.
Due to the legal nature of this term, it should not be used by the real estate agent!
LEAD-BASED PAINT IN HOUSINGApproximately three-quarters of the nation's housing built before 1978 contains some lead-based paint.
Federal law requires that before a buyer or tenant becomes obligated under a contract for sale or lease the seller or landlord must disclose the possibility of lead-based paint and lead-based paint hazards and provide available reports along with the pamphlet “Protect Your Family From Lead in Your Home.”
Deed and Installment Contract Compared
Earnest money deposit
Right of first refusal
“Time is of the essence”Key Terms