Free Real Estate Contracts

Everybody loves something for free, but using free real estate contracts is rarely a smart move. The reason has everything to do with the law supporting those contracts.

Free Real Estate Contracts

There are many ways to look at the law when determining the rules and regulations that apply to a situation. One area you must understand is federal law versus state law. Federal law applies to all states while state law is only binding on transactions within the particular state. While this may sound obvious at first glance, the distinction is important when it comes to the decision to use free real estate contracts.

Although it may seem like there are millions of federal laws, there really are not. Many areas of law are left to the province of state governments and courts. Real estate law is one such area. Given the fact there are 50 states in the Union, this means there are essentially 50 different sets of laws and regulations related to how real estate transactions happen, the language that can and cannot be included in the agreement and how real estate contracts that fall apart are handled.

The beauty of free real estate contracts is, well, they are free. That is about it, however. The problem with these contracts is they constitute one general form without taking into account the fact that each state has different laws regarding real estate transactions. Simply put, a real estate contract for Arizona will contain entirely different language than one for New York. The laws are entirely different.

Free real estate contracts try to get around this problem by including a clause that voids any part of the contract that violates the state law applicable to your transaction. You can find it in the "concluding" clauses at the end of the contract. This is a rather weak attempt to deal with the issue and rarely works if there is a dispute between buyer and seller.

If you use free real estate contracts for the sale or purchase of real estate, you are risking a lot unnecessarily. A real estate transaction involves a significant amount of money. What if a dispute arises and your agreement is found to be in violation of the law of your state? You are in deep trouble.

Do not use free real estate contracts. It is simply too risky. For $30 or so, you can buy form contracts that are written for particular states and take into account the specific laws and regulations of those states. It is well worth the money.

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