What constitutes a valid real estate contract?

A valid real estate contract in the state of California is the written agreement between two parties in which a buyer agrees to purchase real estate, and a seller agrees to transfer ownership of the real estate. To be legally enforceable, the contract must be in writing and signed by both parties. Furthermore, the contract must include terms and conditions agreed upon by both the buyer and seller. Essential items in a valid real estate contract include the name of the seller, the name of the buyer, a description of the property, the purchase price and the down payment, the method in which the purchase price will be paid, the length of the loan term, any restrictions on the property, the date of closing, and the names of those responsible for the closing costs. Additionally, the contract must include provisions for warranties and the contingencies that must be met in order for the contract to become valid—such as loan approval, title examination, and inspections. Finally, the contract must include a statement that the buyer has received disclosure forms as required by California law. Without these requisite elements, a real estate contract in California is considered void and unenforceable.

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What constitutes a valid real estate contract?

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