The real estate contracts can be of 2 types, bilateral and unilateral. In unilateral contracts the seller get agreed to sell his property but the buyer has not agreed to purchase the property and still have an option to purchase the property or seek another better option. The bilateral contracts are those in which the seller has agreed to sell his property and the buyer has also provide assurance to the seller that he will purchase the property of the seller. Both of these sellers and buyers must be well aware of these two types.

Mutual agreement – The first condition expresses that there must be mutual agreement between the buyer and the seller of the property. Both parties should accept the terms and conditions of the agreement. Both parties can provide their assurance by signing the agreement so the agreement must contain signatures of both parties.

There are some legal requirements which must be fulfilled by both parties to make a contract valid in the eyes of law and the parties participating in the contract must be acquainted with these basic legal requirements.

Another requirement of real estate contract says that the agreement between the parties should be in written form; reason being if an agreement is in verbal form then in future any party could withdraw itself from the agreement any time it want to do so and other party can’t take any legal action against the party that has withdrawn itself from the agreement.