Define Real Estate Contract A Real Estate Contract is a legal agreement where an owner of real property agrees to sell the property to a purchaser. Legal title is not transferred until all the payments are made. The escrow company records the payments and gives the purchaser legal title to the property. In order to claim legal title of the property, the purchaser must meet the requirements of the Real Estate Contract and the escrow agent must release it. Then the purchaser has an “equitable title”.
Why opt for a Real Estate Contract?
Sales conditions can be tailored to the requirements of both the purchaser and the seller.
Low or poor credit of the purchaser can eliminate him/her from buying through traditional borrowing methods.
Little or no down payment may eliminate the chances of getting a mortgage.
A sale can close much quicker with a contract than with a new mortgage.
Why is an escrow company helpful? Escrow companies serve several purposes for their clients. The company keeps deeds and documents safe in their custody. When full payment is made by the purchaser, the deed held in escrow will be released for recording. If the purchaser fails to meet their obligations, the deed is safely transferred back to the seller. It serves as a bookkeeper for all your transactions. It monitors principal, interest, and the balance of the account. It will report to the IRS on the purchaser’s behalf as to the amount of interest paid each year. It also provides the interest statements to both the purchaser and the seller. It can deposit funds directly into the seller’s bank account. Using an escrow company can reduce many of the disputes that may arise between purchaser and seller. In Albuquerque, Sunwest Escrow is waiting to assist clients to succeed in their real estate deals.
Visit Sunwest Escrow for more information on real estate contracts in Albuquerque or call 505-237-2225.