If you’re thinking about selling your home, or even just curious about how real estate deals work, there’s one thing you need to understand: real estate contracts are the foundation of every deal.

But here’s what most people don’t tell you: there isn’t just one type of real estate contract. In fact, there are four main types, and knowing which one you’re dealing with can help you avoid delays, protect your rights, and even speed up your sale.

Whether you’re a homeowner looking for a fast, no-hassle way to sell, or an investor juggling multiple properties, this guide will help you make sense of the types of real estate contracts and show you how to write a real estate contract that works in your favor.

Let’s break it down, simply, clearly, and without the legal jargon.

Why Real Estate Contracts Matter (More Than You Think)

A real estate contract isn’t just a bunch of legal language. It’s an agreement that says, “Here’s what we’re doing, and here’s how we’re doing it.” It protects both the buyer and seller by putting everything in writing.

Without a proper contract, anything that goes wrong, like a buyer backing out last minute or a seller refusing to fix a major issue, can turn into a nightmare. And yes, these things happen more often than you’d think.

1. Purchase Agreement (The Most Common Real Estate Contract)

What It Is

A purchase agreement is the most common and traditional type of real estate contract. If you’ve ever bought or sold a house with a real estate agent, used a bank loan, or worked through the MLS (Multiple Listing Service), chances are you’ve dealt with one of these contracts.

Before signing any purchase agreement, it’s important to have a complete understanding of your real estate contract and all its components.

It’s a legally binding document that lays out the full terms of a sale, from the price of the home to the closing date. Both the buyer and the seller sign it, agreeing to follow through with what’s listed in the contract.

Think of it as the “rulebook” for the sale.

What It Includes

A purchase agreement covers a lot of ground. Most include:

• The purchase price – What the buyer agrees to pay for the property.
• Financing terms – Will the buyer use a mortgage? What kind of loan? How much will the down payment be?
• Inspection and appraisal clauses – These give buyers the right to inspect the home and confirm its value before committing.
• Deadlines – These set timelines for each step of the process (like when the inspection must be done or when financing must be secured).
• Contingencies – These are “what if” clauses. For example, the buyer might say, “I’ll buy the home, but only if my financing is approved” or “only if the home passes inspection.”

Example: Let’s say a buyer agrees to buy your home for $300,000. The contract might say the sale depends on the home appraising for at least $290,000 and the buyer getting final approval for a 30-year loan. If either of those conditions isn’t met, the buyer can walk away.

Pros of a Purchase Agreement

Widely Accepted – This is the go-to contract in real estate, and everyone from agents to attorneys knows how it works.

Legal Protection – It protects both buyers and sellers by spelling out each person’s responsibilities. If something goes wrong, the contract can be used in court.

Flexible for Different Properties – Whether you’re selling a house, condo, or even commercial property, this type of contract can be tailored to fit the deal.

Cons of a Purchase Agreement

Slower Timeline – Most purchase agreements take 30 to 60 days to close, especially if the buyer needs a loan. That can feel like forever if you’re in a hurry to sell.

Deals Can Fall Apart – If the buyer’s financing doesn’t get approved, or the home doesn’t appraise for the sale price, the deal might collapse.

Buyers Can Walk After Inspections – Many purchase agreements give buyers an inspection period, often 7 to 10 days, to back out if they find issues. Even minor problems like roof age or an outdated AC unit could scare them off.

When to Use It

This contract is a good choice if you’re not in a rush to sell and you’re okay with the ups and downs of a traditional real estate deal. It’s common when selling with a real estate agent, and if everything goes smoothly, it can lead to a fair and secure sale.

But if you’re dealing with a stressful situation, like managing a property from another state, selling a home with tenants, or needing to close fast for financial reasons, it might not be the best fit. In that case, a direct cash buyer like Golex Properties can offer a more flexible, faster option with fewer moving parts.

2. Assignment Contract (Common with Wholesalers and Some Investors)

What It Is

An assignment contract is a real estate agreement that allows one buyer (usually an investor or wholesaler) to pass their rights under a purchase agreement to someone else, without buying the property themselves.

Basically, they find a property, sign a purchase agreement with the seller, and then “assign” that agreement to another buyer, usually for a small profit.

This is popular in the real estate investment world because it allows people to make money without ever owning the property.

Why It Matters

This type of contract is not used in traditional home sales. Instead, you’ll usually see it when a wholesaler or investor is trying to flip contracts quickly.

They don’t intend to live in the property or rent it, they’re just looking to find a good deal, lock it up, and then sell the rights to another investor for a fee.

Example: Imagine a wholesaler finds a homeowner who wants to sell for $200,000. The wholesaler signs a contract to buy the home but then assigns that contract to another investor for $210,000. At closing, the homeowner still gets $200,000, but the wholesaler makes a $10,000 assignment fee.

Pros of Assignment Contracts

Low Risk for the Investor – The person assigning the contract doesn’t need to spend their own money on buying or fixing up the home.

Speedy Transactions – Since the wholesaler is motivated to move quickly, these deals can sometimes move faster than traditional sales (but not always).

Helpful in Niche Situations – Assignment contracts can help move properties that might not sell easily on the open market.

Cons of Assignment Contracts

Can Be Confusing for Sellers – Many homeowners think they’re selling to one person, only to find out someone else is actually buying the home.

Not Allowed in All Cases – Some purchase agreements specifically say “no assignments allowed.” If that’s in the contract, this method can’t be used.

Deals Can Fall Through – If the wholesaler can’t find another buyer in time, the contract may expire or be canceled, leaving the seller back at square one.

Real Talk: Know Who You’re Dealing With

If someone says they want to buy your home but also says they’re going to “assign” the contract to someone else, don’t be afraid to ask questions:

• Are they actually buying your home?
• What happens if they can’t find another buyer?
• Are there fees or delays you should expect?

There’s nothing illegal about assignment contracts, and many honest wholesalers use them. But they can cause confusion, especially for homeowners who just want a straightforward sale.

3. Lease-Option Contract (Also Known as a Rent-to-Own Agreement)

What It Is

A lease-option contract is exactly what it sounds like, a mix between a rental lease and an option to buy the home later. It’s often called a rent-to-own deal, and it gives the tenant (the person renting the home) the option, but not the obligation, to purchase the property after a set amount of time.

If you’re already dealing with rental property challenges, you might want to explore selling a house with tenants as a more straightforward alternative.

This kind of contract usually comes with:

• A lease agreement (often 1–3 years)
• A purchase price that’s agreed on upfront
• An option fee paid by the tenant (this gives them the right to buy later)
• Terms that explain how and when the tenant can buy the home

Example: Let’s say someone rents your home for $1,500 a month. You agree that if they decide to buy the home within two years, they can purchase it for $250,000. You also collect a one-time option fee of $5,000, which may be applied to the purchase if they move forward.

Why Some Sellers Like It

There are a few situations where lease-option contracts make sense for sellers:

You Get Rental Income Right Away – While you’re waiting for the sale, you’re still bringing in monthly rent payments. That can help cover your mortgage or other expenses.

You Attract More Buyers – People who can’t qualify for a loan right now might still be interested in buying your home eventually. A lease-option gives them time to fix their credit or save for a down payment.

You Can Set the Terms – You choose how long the lease lasts, what the purchase price is, and how much of the rent (if any) goes toward the eventual purchase.

Why It’s Risky

While lease-options can work in certain situations, they come with some major downsides, especially if you’re hoping for a quick and simple sale.

The Buyer Might Never Buy – Just because someone has the “option” to buy doesn’t mean they will. Life happens, maybe their credit doesn’t improve, or they change their mind. You could end up renting the home for years and still have to list it later.

Complicated Legal Terms – These contracts need to be written very carefully. If any part is vague, like how much of the rent applies toward the purchase, it could lead to arguments or even lawsuits.

Delays Your Exit – If your goal is to move on or access your home’s equity now, this isn’t the way to do it. You’ll be locked into a lease and waiting months (or years) for a buyer to maybe make a move.

When This Contract Makes Sense

This type of contract might work if:

• You’re not in a hurry to sell
• The market is slow
• You want to help a tenant become a homeowner

But if your top priority is to sell quickly, with no delays or uncertainty, a lease-option isn’t the right fit. That’s where companies like Golex Properties offer a better solution, buying homes in as-is condition, with or without tenants, and closing in as little as 7 days.

4. Land Contract (Also Called a Contract for Deed)

What It Is

A land contract is a type of seller-financed real estate deal. Instead of going through a bank or mortgage company, the seller acts as the lender, and the buyer makes monthly payments directly to the seller.

But here’s the catch: the seller keeps the legal title to the property until the full purchase price is paid. Only after all payments are made, often over several years, does the buyer officially own the home.

Example: You sell your home for $200,000. The buyer pays $20,000 down and agrees to pay you $1,200 per month for 15 years. During that time, you still legally own the home. Once they finish paying, the deed is transferred to the buyer.

Why Some Sellers Use It

Land contracts can be useful in certain situations, especially if traditional financing isn’t an option.

You Help Buyers Who Can’t Get a Loan – If someone doesn’t qualify for a mortgage, they might still be able to buy through a land contract. This opens the door to more potential buyers.

You Earn Steady Income – Instead of receiving one lump sum, you get monthly payments, usually with interest, which can be a good source of income over time.

You Stay in Control – If the buyer breaks the contract or stops paying, you usually keep both the property and the money they’ve already paid.

Sounds Great, But…

Land contracts come with a lot of hidden risks, especially if you’re not used to managing long-term deals or dealing with legal complexities.

No Full Payment, No Transfer of Ownership – The buyer doesn’t officially own the property until they’ve made every payment. That means you’re still responsible for certain things, and you’re tied to the deal for years.

Default Can Get Messy – If the buyer stops paying, you may have to go through a legal process (like eviction or foreclosure) to get the property back. That can take months and cost you money in legal fees.

You Could Be Stuck With Property Damage – If a buyer fails to maintain the home or leaves it in poor condition, you could end up with a damaged property and no clear path forward.

Not Ideal for Sellers Who Want a Clean Break – If your goal is to move on from the property completely, especially if you’re dealing with stress, tenant issues, or financial urgency, a land contract can keep you tied to the home longer than you’d like.

Who Should Consider a Land Contract?

This option might work for experienced investors or landlords who:

• Don’t need the full sale amount right away
• Are comfortable with long-term management
• Know how to handle legal and financial issues if a buyer defaults

But if you just want to sell your house quickly, avoid risk, and get your cash fast, a land contract is probably more trouble than it’s worth.

That’s why Golex Properties offers a better alternative for many homeowners. We buy homes directly, without agents, banks, or long payment plans. You get a fair cash offer, fast closing, and zero hassle.

How to Write a Real Estate Contract That Actually Works for You

Let’s be honest, writing a real estate contract can sound intimidating. Legal terms, deadlines, fine print… it’s enough to make anyone feel overwhelmed. But here’s the good news: you don’t need to be a lawyer to understand the basics of a strong, effective real estate contract.

Whether you’re selling your home on your own or just want to understand what’s in the paperwork, learning how to write a real estate contract is a smart move. It puts you in control and helps you avoid common mistakes that could cost time or money.

For sellers who want to skip contract complexities altogether, exploring the benefits of selling a house for cash might be the simpler path forward.

What Every Real Estate Contract Should Include

A real estate contract is more than just “I’ll sell, you’ll buy.” It’s a legal document that protects both parties, and keeps the sale on track. At the very least, your contract should include:

The full legal names of both buyer and seller
This sounds basic, but even small errors, like using a nickname or leaving out a middle name, can cause problems later.

A full description of the property
Don’t just list the street address. Use the legal property description from your deed or property records. This helps avoid any confusion, especially if there are multiple buildings, lots, or shared land involved.

The agreed-upon purchase price and payment terms
Is the buyer paying cash or using a loan? Are they putting down a deposit or earnest money? Your contract should explain exactly how and when money will be exchanged.

Contingencies
These are “if-this-then-that” conditions built into the contract. Some common ones:

• The buyer will only move forward if they can get financing
• The deal depends on the home passing an inspection
• The sale hinges on the home appraising for at least the purchase price

Note: If you’re a seller, keep an eye on these. Too many contingencies can make a deal shaky and easier for the buyer to walk away.

Important deadlines and timelines
Every step, like inspections, loan approval, and closing, needs a deadline. Missing one can delay or even cancel the sale.

Who pays for what
This includes closing costs, transfer taxes, repairs, and title fees. If this isn’t outlined clearly, it could lead to last-minute fights, or one side feeling taken advantage of.

What happens if the deal falls through
Does the buyer lose their deposit? Is there a penalty for backing out without a valid reason? Planning for the “what ifs” helps avoid future headaches.

Signatures from both parties
No contract is official until it’s signed by everyone involved. Electronic signatures are legal in most states, but check your local laws just to be sure.

Pro Tip: Let the Pros Handle It for You

If you’re selling to a cash buyer like Golex Properties, you don’t have to write the contract yourself. We take care of everything, so you’re not stuck Googling legal terms or second-guessing the paperwork.

Our contracts are:

• Straightforward
• Easy to understand
• Designed to protect both sides
• Built to help you close fast, often in 7 days or less

What Most People Don’t Know About Real Estate Contracts (But Should)

Most real estate advice online covers the basics, but skips the real-life details that can actually cause deals to fall apart. So here’s the inside scoop on what really matters:

1. Contingencies Usually Favor the Buyer

Contingencies are designed to protect buyers, but they can also cause sellers a lot of stress. For example, a buyer can back out if:

• Their financing falls through
• The home doesn’t appraise high enough
• An inspection turns up too many problems

Even if you’ve already packed your boxes, these clauses can stall or kill the deal completely.

If you’re a seller who needs to move quickly, try to limit the number of contingencies, or work with a cash buyer who doesn’t require any at all.

2. ‘As-Is’ Doesn’t Mean ‘Anything Goes’

You’ve probably heard of homes being sold “as-is”, which means the seller won’t make repairs. Sounds simple, right?

Not always.

Even in an as-is deal, the buyer might still:

• Request an inspection
• Use the inspection to negotiate a lower price
• Back out if the results scare them

That’s why it’s important to be clear in the contract about what as-is really means, and whether the buyer can still walk away based on inspection results.

At Golex Properties, when we say “as-is,” we mean it. No repairs. No negotiating. We buy homes in their current condition, even if they’re outdated, damaged, or have tenants in place.

3. Deadlines Aren’t Just Suggestions

One of the biggest mistakes people make? Treating deadlines like “rough estimates.” In real estate, timing matters.

Missing a deadline, like turning in paperwork late or not scheduling an inspection on time, can delay closing or void the entire agreement.

Tip: Build a buffer. If your contract gives the buyer 10 days for inspections, start preparing on Day 1, not Day 9.

4. Cash Buyer Contracts Are Simpler by Design

Forget the banks, skip loan approvals, and avoid underwriting delays. That’s why more and more sellers are choosing to work with professional cash buyers.

At Golex Properties, here’s how our process works:

1. We agree on a fair cash price
2. We send you a simple, easy-to-read contract
3. You choose your closing date
4. We handle the rest, including the title, paperwork, and fees

There are no middlemen, no commissions, and no waiting on banks.

Types of Real Estate Contracts: Choosing the Right Real Estate Contract

Knowing the types of real estate contracts gives you the power to choose the path that’s right for your situation. Each contract has its purpose, but not every contract is built for speed or simplicity.

If you’re ready to sell and don’t want to deal with inspections, showings, or buyer financing issues, a traditional contract might leave you frustrated. That’s where a direct cash buyer like Golex Properties comes in. We make real estate simple, no fees, no commissions, and no nonsense.

Want to learn more about how we buy houses fast in Florida and Georgia? Click here to see how it works or contact us today to get a fair cash offer with zero pressure.