{"id":898,"count":1,"description":"\r\n\r\nJump to: \r\nWhat is a contract?<\/a>\r\nWhat are real estate contracts?<\/a>\r\n\r\nWhat is a contract?\r\n\r\nA contract is a legal agreement between several entities (individuals or businesses). The agreement has a subject and dictates terms and conditions that apply to the entities involved.\r\n\r\nFor a contract to be enforced, it must be legally classified as \u201cvalid.\u201d To that effect, a contract must meet a set of requirements, such as:\r\n\r\no each entity involved must be legally competent and consenting to enter the contract and\r\no the purpose or subject of the contract must be legal\r\no The contract must be an agreement by offer and acceptance\r\no Consideration must be specified in the contract (see Valid)\r\nA contract that does not fulfill the necessary requirements of validity and\/or is missing one or more of the key elements, is legally classified as \u201cvoid\u201d.\r\n\r\n\r\n\r\n\r\nWhat are real estate contracts?\r\n\r\n\r\nThere are several types of contracts or agreements, depending on the real estate transaction that is their subject. On frequently encountered example is the listing agreement, which is between the property owner and a real estate representative who is to put the property listing on the market, either for sale or for lease. Listing agreements fall into four general categories:\r\n- Exclusive listing agreement \u2013 whereby the real estate representative gets paid, no matter who closes the deal\r\n- Exclusive agency listing agreement \u2013 whereby the real estate agent is paid only if he\/she closed the deal (no commission if the seller\/lessor closes the deal)\r\n- Open listing agreement \u2013 whereby a seller can use any number of real estate representatives to advertise the property availability, but is not obligated to pay any of them is the seller closes the deal himself\/herself\r\n- Net listing agreement \u2013 (not universally legally accepted) whereby the real estate representative gets to keep whatever was offered above the seller\u2019s desired price\r\nDepending on other factors, contracts type of contracts can include:\r\nUnilateral, Bilateral and Multilateral \u2013 depending on how many parties are involved. A unilateral contract is when an entity takes on responsibilities\/duties, without required reciprocation from a second party. A bilateral contract dictates responsibilities\/duties that two parties have to each other, and a multilateral contract involves three or more parties exchanging responsibilities through the contract.\r\n- Contract of sale\/Purchase contract \u2013 whereby the ownership of the contract\u2019s subject property changes\r\n- Lease agreement \u2013 whereby a property owner grants use of the property to a different party, according to certain terms and conditions (see types of lease)\r\n\r\n\r\n\r\n\r\n\r\nYou might also be interested in:\r\n\r\nWhat is an assignment sale in commercial real estate?<\/a>\r\nWhat is an assignment?<\/a>\r\nWhat is an Estoppel certificate?<\/a>\r\n\r\n\r\n\r\n\r\n\r\n\r\nSearch other terms\r\n\r\n\r\nA<\/a>\r\nB<\/a>\r\nC<\/a>\r\nD<\/a>\r\n\r\n\r\nE<\/a>\r\nF<\/a>\r\nG<\/a>\r\nH<\/a>\r\n\r\n\r\nI<\/a>\r\nJ<\/a>\r\nK<\/a>\r\nL<\/a>\r\n\r\n\r\nM<\/a>\r\nN<\/a>\r\nO<\/a>\r\nP<\/a>\r\n\r\n\r\nQ<\/a>\r\nR<\/a>\r\nS<\/a>\r\nT<\/a>\r\n\r\n\r\nU<\/a>\r\nV<\/a>\r\nW<\/a>\r\nX<\/a>\r\n\r\n\r\nY<\/a>\r\nZ<\/a>\r\n\r\n\r\n\r\n\r\n\r\nPopular terms\r\n\r\n\r\n\r\n\r\nAmortization<\/a>\r\n\r\n\r\nEquity <\/a>\r\n\r\n\r\nNotary Public <\/a>\r\n\r\n\r\nProgression\/Regression<\/a>\r\n\r\n\r\nAcquisition <\/a>\r\n\r\n\r\nAnnuity <\/a>\r\n\r\n\r\nAsset <\/a>\r\n \r\n \r\n Fiduciary <\/a>\r\n\r\n \r\n Inflation <\/a>\r\n\r\n \r\n Contingency <\/a>\r\n\r\n \r\n Escrow<\/a>\r\n\r\n \r\n Power of attorney <\/a>\r\n\r\n \r\n Real Estate Agent <\/a>\r\n\r\n \r\n Eminent Domain <\/a>\r\n\r\n \r\n Liability <\/a>\r\n\r\n \r\n Statute of Limitations<\/a>\r\n\r\n \r\n Valid <\/a>\r\n\r\n \r\n Variance<\/a>\r\n\r\n \r\n Contiguous <\/a>\r\n\r\n \r\n Deficit<\/a>\r\n\r\n\r\n\r\n\r\n","link":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-contract\/","name":"Contract","slug":"cre-term-contract","taxonomy":"post_tag","meta":[],"yoast_head":"\nWhat is a Contract? - Commercial Real Estate Dictionary<\/title>\n<meta name=\"description\" content=\"A contract is a legal agreement between several entities (individuals or businesses). The agreement has a subject and dictates terms and conditions that apply to the entities involved.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-contract\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Contract Archives\" \/>\n<meta property=\"og:description\" content=\"A contract is a legal agreement between several entities (individuals or businesses). 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