What is generally required for a valid real estate contract?

For a real estate contract to be considered valid, it typically requires mutual consent between the parties involved and a lawful purpose. Mutual consent means that both parties understand and agree to the terms of the contract, which is often evidenced by their signatures. This element is crucial as it ensures that both parties have a clear understanding of their obligations and rights under the agreement.

The requirement for a lawful purpose means that the contract must not involve illegal actions; the activities outlined within the contract should comply with existing laws and regulations. If either of these conditions isn't met, the contract may be deemed void or unenforceable.

While a handshake agreement may indicate an intention to enter into a contract, it does not fulfill the legal requirements for a real estate contract, which typically needs to be in writing due to the Statute of Frauds. The presence of a notary witness, while beneficial for certain types of contracts, is not a strict requirement for all real estate contracts in many jurisdictions. Similarly, approval from a financial institution, while often necessary in the case of financing, is not a prerequisite for the creation or validity of the contract itself. Thus, mutual consent and lawful purpose stand as fundamental requirements for valid real estate contracts.