| Any transaction involving an agreement to exchange | | | | the buyer pays the sale price in installments along |
| an asset on a future date is subject to risk of | | | | with the interest. On completion of the payment |
| uncertainty. This is because future is uncertain. And | | | | term, the seller releases the ownership contract |
| no matter how sure you are about an event set to | | | | pledged with him. |
| happen on a future point in time, law does not | | | | So, as you see the entire process can be quite |
| consider it as a proof of guarantee. Irrespective of | | | | comprehensive and any default made by any of the |
| the precautions taken risks are always there and the | | | | parties can cause lot of problems. Even if the |
| only way to escape from the impact of a risk (if it | | | | contract is valid and legally enforceable in a court of |
| materializes) is to make a provision to cover the | | | | law, the aggrieved party has to undergo lot of |
| potential damage that it can cause. | | | | proceedings and complete several formalities before |
| Real estate contract inflicts certain amount of risk on | | | | he receives justice. This would involve waste of time |
| all the parties involved. The principal parties involved in | | | | and money. Appointing an attorney or lawyer is a |
| any real estate contract are the buyer and the seller. | | | | serious expense nowadays, and sometimes they |
| There can be one or more buyers for a property. | | | | worsen the situation even further for their own |
| Similarly, sellers can also be more than one when a | | | | selfish motives. And if at all, unfortunately, the real |
| particular property is owned by multiple individuals. | | | | estate contract turns out to be invalid, that is, it lacks |
| However, it is the seller who is often exposed to | | | | necessary provisions or clauses pertaining to any |
| more risks than the buyer. There are many cases | | | | condition significant to the transaction then there is |
| registered in which the seller has transferred the | | | | no scope of even getting a fair compensation. |
| ownership or possession of the property in favor of | | | | Thus, the authenticity of different legal aspects |
| the buyer but hasn't received the promised | | | | pertaining to a real estate contract depends on how |
| consideration in its entirety. | | | | perfectly it is drawn. If there are any loopholes left |
| This is a common problem because most of the | | | | unattended, the other party can easily take |
| times properties or houses are bought on the basis | | | | advantage of the situation. If the opposite party is |
| of mortgage. Wherein, the buyer pledges the title of | | | | acting through an agent, then one should be even |
| the property with the lending bank, financial institution | | | | more careful. It is always advisable to appoint a |
| or creditor. And the seller may hand over the | | | | licensed and reputed real estate agent to monitor the |
| possession on partial payments or even before the | | | | entire transaction. Experienced agents are usually |
| loan is sanctioned. There are even agreements where | | | | expert in getting around all the possible risks that a |
| the seller itself agrees to sell on mortgage, wherein | | | | layman cannot anticipate. |