This is a legally binding contract that spells out all of the buyer's and seller's legal rights and obligations concerning the sale of the real estate. The names and addresses of the parties should be stated. If a corporation is a party to the contract, the type of corporation, the state of the incorporation, and the corporation's principal office or place of business should be stated. In most instances, real estate salespeople cannot sign as agents for their clients. The real estate agent's authority usually is limited to bringing the buyer and seller together.
Salespeople can sign as agent only if they have specifically been granted the power to do so.
The contract must contain an express agreement by one party to sell and by the other party to buy. The purchase contract must contain a legal description of the real estate, which usually is obtained from the deed or title search. Street or lot numbers alone are insufficient. Price and terms of payment. The contract should state the method of financing whether there is going to be a mortgage assumption or a new bank mortgage, or whether the seller will hold the mortgage.