In the world of buying and selling real estate, few topics draw as much attention as the sales contract. Sellers want their contracts to be ironclad; buyers want them to be full of loopholes. Somewhere in between, the agent is trying to hold the deal together until it gets to the closing table.

Here are some commonly asked questions about residential real estate contracts:

Q: What are the minimums required to have an enforceable contract?

A: Common law looks for the essential elements of offer, acceptance and consideration.

An offer is a statement that one individual is willing to enter into a contract with another individual on certain terms. Acceptance is simply some indication by the person receiving the offer that the offer is satisfactory and is accepted. Consideration is the exchange of benefits or advantages between the parties. The parties decide during negotiations if the consideration is adequate.

In addition, most states, including Georgia, require that contracts for the sale of real estate be in writing. If a written agreement has offer, acceptance and some consideration between the parties, it is probably a valid and binding contract.

Q: Is a legal description required?

A: A clear and precise legal description of the property being sold is extremely helpful in identifying exactly what is being sold, but it is not required.

For example, if the contract identifies the property as "the Johnson house on Highway 42 in Cobb County, Georgia," there may be some dispute as to exactly what constitutes the property being sold. However, if the agreement says "Lot 3 of Block C in the Springhill Subdivision, as shown in Plat Book 215, page 43, Cobb County, Georgia records," then we have a much better chance of identifying the exact parcel involved. The description should also include the district and land lot of the property as well as a street address, if possible.

I always recommend trying to find a survey of the property and attaching it to any sales agreement. That way, everyone can be sure exactly what real estate is being sold.

Q: What happens if the contract is not specific enough?

A: If a court cannot determine with reasonable certainty what the parties intended, it cannot enforce the contract.

Q: What else should be in a contract?

A: Certainly the following should be clearly defined:

•  The purchase price and amount of earnest money paid.

•  The financing terms, along with the maximum acceptable interest rate the buyer will accept.

•  Identification of any personal property being transferred or sold with the property.

•  Disclosure and compliance issues such as lead-based paint.

•  Inspection contingency and terms for inspection.

•  Statements of agency relationships if agents are involved.

•  Settlement date and terms of possession.

As you can see, there is a lot more to properly drafting a real estate sales contract than offer and acceptance.

Fortunately, real estate professionals receive training in the proper way to fill in blanks on contract forms. These forms are prepared by attorneys to cover all important areas in most sales situations. The forms used by most agents in Georgia are approved by the Georgia Association of Realtors. They are excellent forms for use in selling real estate.

Q: Why does my contract say "time is of the essence"?

A: Simply put, it means that if one party required to perform an obligation misses the stipulated time for performance, the other contracting party will be entitled to immediately terminate the agreement and claim damages for breach of contract.

Q: If I have a good agent, do I still need an attorney?

A: I think it's a good idea to have a real estate attorney review any legal documents before you sign them. Only an attorney is qualified to give legal advice, and the purchase of a home is likely to be the largest expenditure you ever make.

Q: Is a lead-based paint disclosure always required?

A: No. The EPA required disclosures for lead-based paint and the information booklets are only required if the property was built before 1978.

John Adams is a broker and investor.