What exactly is a contract?
By definition, a contract is an agreement between two or more parties to do, or to refrain from doing, a particular thing in exchange for something valuable. The parties can be individuals, businesses, organizations and government agencies.
They key elements of a successful real estate contract:
1. Offer and acceptance
This implies original signatures with no alterations to contract. Don't mistake offer and acceptance for counter-offer. When original offer is marked up and initialed by party receiving it, then signed, you got a counter-offer and not offer and acceptance. When you come to a final agreement, you should rewrite contract according to agreement and this contract must be signed by both parties.
Usually, money is form of consideration people use, but sometimes, a promise to perform/pay is also good. .
3. Written contract
All real estate contracts must be in writing. In order to write a good real estate contract, you must keep in mind these things:
You must write full name of parties on contract and thus identify parties.
You must have legal description on contract. Sometimes, address will do, but it's preferable to have full legal description. By having this on contract, you will have property identified.