Escrow: Escrow is a neutral third party that is responsible for holding money during the buying process. Earnest money deposits are usually placed in trust. Escrow protects both parties until contractual risks have been taken. For example, a buyer could put his or her serious money deposit in trust until a home inspection is completed, and be sure that if he has problems with the inspection and the buyer decides not to proceed with the contract, he or she will receive the serious money deposit from the fiduciary party. Selling or leasing? In the case of an alleged application of land contracts, it is necessary to check whether the contract is in the form of a sale in relation to a lease agreement. The answer to this question will guide corrective action to the default configuration. (Besides, these issues are not just in real estate law.) In a standard land contract, the owner/seller will want to get the buyer out of the property as quickly as possible. In other words, the owner will want to distribute the buyer, a remedy known in this context as a forfeiture. On the other hand, the buyer may want to protect his presumed equity in the property or, in other words, credit to the property for payments made. This means that the buyer wants the accompanying rights on the mortgage foreclosure shares (time, right to withdraw, sheriff`s sale process, etc.).
You should use this agreement if a) you are a potential buyer or seller of real estate, (b) define the legal rights of each party to the sale and (c) define the respective obligations of each party before the transfer of ownership. A real estate purchase agreement does not transfer the title of a house, building or land. Instead, it provides a framework for each party`s rights and duties before the title can be returned. In Hooker`s circumstances, the Indiana Court of Appeals held that the owner/seller had chosen the forfeiture remedy over the enforced execution and was therefore prohibited from recovering the missed contractual payments that he could have recovered had he chosen the alternative remedy.