There is a general misconception about Virginia real estate contract that all contracts are same. However, this concept is wrong because each real estate company has their own forms and similarly every attorney may have his own standards to follow. But the basic rules and laws of Virginia real estate contract are same irrespective of the nature of property. It is also important to remember that agreements and contracts are two different types of documents. Where an agreement is arrangement of terms and it can be revoked easily without any legal procedures, the contracts are binding and they cannot be revoked without any legal consequences unless both the buyer and seller decides to revoke the contract with mutual understanding.
The main element of the Virginia real estate contract is that it contains offer which can either be accepted or rejected. The contract becomes legally binding when the presented offer is accepted and in case of rejected offer, the contract is automatically revoked. However, there are other terms and conditions involved where the contract automatically becomes null and void such as incompetency of either party to the contract. The binding aspect of Virginia real estate contract is that no matter what, there must be something of value transferring between the parties. The transfer of something with value is known as consideration in the contract.
Another important and binding aspect of Virginia real estate contract is that both the parties to the contact must be legally competent to enter the contract, otherwise the contract automatically becomes null and void. And the contract also must be for transfer of legal property only, this means that the contract cannot be formed for the transfer of illegal property. This is known as lawful purpose and every contract is formed for some lawful purpose. One of the most important part of Virginia real estate contract is that it should be in writing, only the written contract is enforceable by law because a verbal contract does not have any proof and therefore not enforceable by law.
Modifying a contract is another important aspect of Virginia real estate contract that is often ignored or misunderstood. The parties to contract are often under wrong impression that the written contract cannot be modified. But this is not true and the misconception is wrong. Because Virginia real estate contract allows both parties to the contract either buyer or seller to make certain amendments in the contract. The amendment can be made either directly on the contract or if it is too long to be directly added on the contract, the amendment can be written down on the separate piece of paper to be attached with the contract. But the important point to note is that the amendments or modifications ion the contract can only be made when both the parties agree to it. Without knowledge of either party no amendment can be made in the contract. Similar to the rule of modification, it should also be known that Virginia real estate contract allows the parties to electronically sign the document.