This is not a substitute for legal advice.  An attorney must be consulted.

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  Real Estate Contract

A conveyance of real estate is a transfer from one person to another.  A real estate contract is one form of conveyance.  A real estate contract is an agreement to transfer title to real estate to a person, at some specified time in the future, contingent upon that person’s payment of the purchase price.  The seller is known as a “vendor” and the buyer is known as a “vendee.”  The vendor gives a deed to the vendee once the vendee has performed his/her obligations under the contract.  Until such time, the vendor retains title to the real estate.  It is distinguished from a deed in that a deed actually transfers title to the buyer, whereas, the real estate contract contemplates execution of a deed in the future.  A real estate contract is distinguishable from a purchase agreement in that, whereas, a purchase agreement contemplates a sale of real estate in the future, the real estate contract is the actual sale.

In most states, a real estate contract must be in writing and must be signed to be enforceable.  A possible exception is where the buyer has made substantial payment on the purchase price pursuant to an oral agreement and it would be unfair to strictly enforce the writing requirement.  A real estate contract must be recorded to put third persons, such as creditors and subsequent purchasers on notice as to the contract.  At the very minimum, the real estate contract should include the names and addresses of the vendor and vendee, the legal description and street address of the real estate, the contract terms regarding the purchase price and how it is to be paid, and the type of deed to be given to the vendee upon payment of the purchase price.

A real estate contract is sometimes viewed as an alternative form of financing of a real estate purchase.  Instead of a bank or other lender advancing the purchase price and receiving a mortgage, the vendor, in effect, finances the purchase price, retaining title to the real estate as security.  In the event of the vendee’s default in performance of the contract terms, the vendor may foreclose the mortgage or, in certain circumstances, declare a forfeiture of the contract.  Please see specific state for details and/or differences.

Black’s Law Dictionary, Fifth Edition.

ALABAMA | ALASKA | ARIZONA | ARKANSAS | CALIFORNIA | COLORADO | CONNECTICUT | DELAWARE | FLORIDA 
 GEORGIA | HAWAII | IDAHO | ILLINOIS | INDIANA | IOWA | KANSAS | KENTUCKY | LOUISIANA | MAINE | MARYLAND 
 MASSACHUSETTS | MICHIGAN | MINNESOTA | MISSISSIPPI | MISSOURI | MONTANA | NEBRASKA | NEVADA 
 NEW HAMPSHIRE | NEW JERSEY | NEW MEXICO | NEW YORK | NORTH CAROLINA | NORTH DAKOTA | OHIO 
 OKLAHOMA | OREGON | PENNSYLVANIA | RHODE ISLAND | SOUTH CAROLINA | SOUTH DAKOTA | TENNESSEE 
 TEXAS | UTAH | VERMONT | VIRGINIA | WASHINGTON | WEST VIRGINIA | WISCONSIN | WYOMING

ALABAMA
Alabama Code §8-9-2.

ALASKA
Alaska Code §09.25.020;  34.15.260.

ARIZONA
Arizona Code §11-461;  33-412;  44-101.

ARKANSAS
Arkansas Code §4-59-101-03;  14-15-403-04;  26-60-107;  21-6-306.

CALIFORNIA
California CC §1091.

COLORADO
Colorado Code §38-10-108, 110.

CONNECTICUT
Connecticut Code §47-1 onward, 52-550.

DELAWARE
Delaware Code §25-101 through 153.

FLORIDA
Florida Code §725.01 onward, 689.01 onward.

GEORGIA
Georgia Code §44-5-30 onward; 44-2-1 through 3.

HAWAII
Hawaii Code §656-1.

IDAHO
Idaho Code §32-912, 9-503, 504.

ILLINOIS
A real estate contract must have attached to it a certificate of compliance or express written warranty that the owner has not received notice of dwelling code violations within the past ten (10) years or, if such notices were received, a detailed list of the violations.  Illinois Code §765-75/2.

INDIANA
Indiana Code §32-2-2-1;  32-1-2-11, 12, 18; 6-1.1-5.5-3.

IOWA
Iowa Code §622.32-35;  558.41.

KANSAS
Kansas Code §58-2203, 2204.

KENTUCKY
Kentucky Code §371.010; 382.110, .140,.335.

LOUISIANA
Louisiana CC §2275;  T.9, §5353.

MAINE
Maine T.33, §51-53, 201-203, 751;  T.11, §9-401.

MARYLAND
The real estate contract should include an affidavit stating the amount of consideration paid, including the amount of any mortgage assumed by the vendee.  Maryland Real Prop. Art. §3-101 through 104, 601;  5-104.

MASSACHUSETTS
Massachusetts C. 259, §1; C. 183.

MICHIGAN
In Michigan, a real estate contract must be witnessed by two (2) individuals.  Michigan CLA §566.106, 110, .132, 565.1 onward.

MINNESOTA
Minnesota Chapter 559.

MISSISSIPPI
Mississippi Code §15-3-1;  89-3-1 onward.

MISSOURI
Missouri Code §432.010;  442.390-.400.

MONTANA
Montana Code §71-3-1301 through 1303;  28-2-903.

NEBRASKA
Nebraska Code §76-118, 275.07.

NEVADA
Nevada Code §111.015, .205-.210, .315-.325.

NEW HAMPSHIRE
New Hampshire C. 506, §1-2; C. 477, §3-a,7.

NEW JERSEY
New Jersey Code §25-1-2; 46-15-1.1 onward.

NEW MEXICO
New Mexico Code §14-9-3; 55-9-403(7); Common Law.

NEW YORK
New York G.O.L. §5-703; R.P.L. §290, 291.

NORTH CAROLINA
North Carolina Code §22-2; 47-18, 20.

NORTH DAKOTA
North Dakota Code §9-06-04; 47-10-01.

OHIO
Ohio Code §1335.05; 317.08, .111; 5301.25; 5313.02.

OKLAHOMA
Oklahoma Code §15-136; 16-16, 26.

OREGON
Oregon Code §93.010, .410, .480, .640.

PENNSYLVANIA
Pennsylvania Code §33-1; 21-357.

RHODE ISLAND
Rhode Island Code §9-1-4; 34-11-1.

SOUTH CAROLINA
South Carolina Code §27-23-60; 27-7-20 through 30; 30-7-10.

SOUTH DAKOTA
South Dakota Code §53-8-2; 43-28-17.

TENNESSEE
Tennessee Code §29-2-101; 66-26-102.

TEXAS
Texas Prop. Code §5.021, 13.001; Bus. & Comm. Code §26.01.

UTAH
Utah Code §25-5-1; 57-3-2.

VERMONT
Vermont Code §12-181; 27-341.

VIRGINIA
Virginia Code §11-2; 55-96, 572.

WASHINGTON
Washington Code §64.04.010-.020; 65.08.060-.070.

WEST VIRGINIA
West Virginia Code §36-1-3; 55-1-1; 40-1-8 onward.

WISCONSIN
Wisconsin Code §706.01-.02, .04, .08.

WYOMING
The real estate contract should include an affidavit stating the amount of consideration paid including the amount of any mortgage assumed by the vendee.  Wyoming Code §1-23-105; 34-1-104, 120.

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright © 1994 - 2014 by LAWCHEK, LTD.

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This is not a substitute for legal advice. An attorney must be consulted.