Once a real estate contract is accepted....

Real estate contracts must be accepted in writing. Once a real estate contract is accepted, the document becomes the instrument for handling the sale of the property. It serves as a guide for the sale of property. The transfer agent will distribute funds, transfer ownership (title), deal with outstanding mortgages, etc according to the real estate contract. The agreement also indicate the rights of the parties under contract.

There are many real estate contracts and agreements. Examples are:

• lease option contracts
• options contracts
• purchase and sale contract
• sale and purchase contract
• rental agreements
• wraparound mortgages
• and many more...

You can either do the contract yourself. Samples of what each contract looks like can be found at most office supply companies. You can also use software to automate the process. You should have a clear understanding of each type of real estate contract before you start your real estate investment.