What are the laws governing real estate contracts?

In Washington, real estate contracts are governed by the laws of the state. These laws dictate how contracts are formed, enforced, and interpreted by the courts. Generally, real estate transactions are regulated by the Uniform Commercial Code as adopted by the state. Real estate contracts must be in writing and must be signed by both parties. They must include the legal description of the property being purchased, the purchase price, and any contingencies or conditions that must be met before the contract is binding. The contract should also specify the date of closing and who will be responsible for closing costs. For a real estate contract to be enforceable, both parties must be competent to enter into a contract. This means that neither party can be minors, mentally incapacitated, or under the influence of drugs or alcohol. Additionally, both parties must fully understand the terms of the contract. Both parties to the contract must also abide by the statute of frauds. This means that if the contract is expected to exceed a certain dollar amount or needs to be carried out over a certain period of time, it must be in writing. Oral modifications or promises made outside of the written contract are not enforceable in court. Finally, if one party fails to meet their obligations as outlined in the contract, the other party may be able to take legal action to recover any losses. If, for example, the buyer fails to make required payments, the seller may repossess the property according to the terms of the contract.

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