Which of the following Is an Example of a Unilateral Real Estate Agreement

When it comes to the world of real estate, there are many different types of agreements that can be made between parties. One such agreement is a unilateral real estate agreement, which is an agreement made by one party that is binding on another party. In this article, we`ll explore what a unilateral real estate agreement is and provide an example of this type of agreement.

A unilateral real estate agreement, sometimes referred to as a unilateral contract, is a type of agreement where one party makes a promise to do something in exchange for the other party`s performance. In other words, one party is making an offer that the other party can accept through their actions. This is different from a bilateral contract, where both parties make promises to each other.

An example of a unilateral real estate agreement is an open listing agreement between a seller and a real estate agent. In this type of agreement, the seller agrees to pay the real estate agent a commission if the agent brings a buyer who is willing and able to purchase the property at the seller`s asking price. However, the seller is not obligated to use the services of the real estate agent exclusively. In other words, the seller can also work with other agents or try to sell the property on their own.

Another example of a unilateral real estate agreement is an option agreement. In this type of agreement, a buyer pays the seller for the right to purchase the property at a later date for a specified price. The seller is not obligated to sell the property to the buyer, but the buyer is obligated to purchase the property at the specified price if they decide to exercise their option.

It`s important to note that unilateral real estate agreements are only binding if the second party performs the specified action. In the open listing agreement example, the real estate agent is only entitled to a commission if they bring a buyer who is willing and able to purchase the property at the asking price. If the agent does not bring a buyer, they are not entitled to a commission.

In conclusion, a unilateral real estate agreement is an agreement made by one party that is binding on another party if they perform a specified action. Examples of unilateral real estate agreements include open listing agreements and option agreements. It`s important to understand the terms of these agreements before entering into them to ensure that both parties are aware of their obligations and rights.

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