The real estate contracts are regulated by the laws of that state in which the property is located in. For example, if a buyer from US goes to buy the property in UK then the transaction will be processed according to the property laws of UK and if there is any conflict or dispute between the parties then the parties will need to appear in the UK court. It is important to know the law aspects of a contract to close the deal successfully but it is not easy to understand the clauses and lengthy provisions explained in the law books.
Though it is difficult to understand the clauses written in an agreement for property transaction but is important to understand because the expectations of parties from a contract depend on their understanding. Certain basic things must be understood to both the parties before they sign a contract. There are many different types of contracts in the real estate transactions so before understanding the clauses it is important for the parties to know and understand the type of the contract they are entering. For example, if they are doing the lease purchase deals then they must know the basics of the lease purchase deals and if the transaction is of a real estate owned property then the parties must know and understand the basic of the real estate owned properties.
If the nature of the transaction is mortgage then understanding of the contract becomes more complicated. The seller of the property in the mortgage contracts should go through the details of the agreement such as conditions and time limits. The mortgage can be obtained only after the agreement is signed by both the parties. As soon as the agreement is signed by both the parties, both the parties become legally bound by the conditions mentioned in the contract.
The buyer cannot withdraw after the agreement is signed. It is possible for the buyer to withdraw from the obligation only if the loan amount of the buyer gets rejected by the lending party. The buyer in the contract can request more time only if the lending party is not preceding the loan application as expected. If this situation comes in then the seller can also withdraw from the contract by cancelling the agreement but if the seller wants to stay in the contract then he can wait for the buyer before closing the contract. The seller must be cautious if he decided to wait for the buyer because if he agreed to wait then the buyer can also try to negotiate the final sale price of the property.