Types Of Contracts Flashcards
Option agreement
Gives buyer option to buy, seller must sell.
Contract is assignable.
Considered unilateral
If exercised its bilateral
Sellers agreement to sell and buyers agreement to buy
Contract of sale
Purchase and sale agreement
Offer to purchase
Lease option
Can purchase or renew lease or extend lease, rent may or may not be applied to purchase
Land contract
Contract for deed
(Installment contract)
Seller (vendor) finances property and keeps rutile until final payment is made or other condition is met by buyer (vendee)
Typically buyer pays for property taxes and insurance and so on.
Option contract
The right to purchase property within a definite time at specified price.