CONTRACTS 1. Real estate contracts should be in writing.— Agreements for the transfer of an interest in real property belong to the class of contracts, which in addition to the common characteristics of all contracts —agreements, competent parties, lawful considera tion and a promise—must be in writing in order to be enforceable and must be subscribed by the party to be charged or his authorized agent. From a commercial viewpoint, it is wise and safe that the bargain upon which two contracting parties have agreed should be expressed in writing. In the course of time, it has been found wise that a contract relating to such an important commodity as land should stand upon a sound basis, and therefore be in writing and not left to word of mouth. A statute generally known as the Statute of Frauds was passed requiring practi cally all contracts relating to land to be in writing. This statute is in one form or another in force in most jurisdictions. For the full completion of the real estate transaction there are two important steps : first, the signing of the contract, and second, the closing of the title. The first step is taken when the minds of the parties have met and made the bargain; the sec and after the purchaser has had the opportunity to look into the title to the property involved and to ar range for the cash required to be paid on closing the title. Between the making of the agreement and its consummation at closing title some time may elapse. Because of this and because of possible misunder standings between buyer and seller, expenses incurred by the purchaser, or changes in the legal position of both parties, it is only ordinary prudence that a writ ten instrument expressing the full details of the bar gain be drawn up and signed by both parties.
No special form of real estate contract is prescribed by law. If the instrument has the essential elements of a contract, and expresses the entire bargain, it is sufficient. In order that we may note what is usual in contracts of this sort, a copy of a form of sales con tract used by the leading title companies of New York City is given here by way of illustration. It must of
course be recognized that in places outside New York City some of its provisions should be excluded, and others, suitable to the particular case, inserted. The printed part includes what has. been found usual in all such contracts, and the blank spaces are provided to be filled in with such matter as pertains to the par ticular case. • Witness, that the seller agrees to sell and convey, and the purchaser agrees to purchase all that lot or parcel of land, with the buildings and improvements thereon The deed shall be delivered upon the receipt of said pay ment at the office of at 19 Rents and interest on mortages, if any, are to be apportioned.
This sale covers all right, title and interest of the seller, of, in and to any land lying in the bed of any street, road or avenue, opened or proposed, in front of or adjoining said premises, to the center line thereof, or all right, title and interest of the seller in and to any award made or to be made in lieu thereof, and the seller will execute and deliver to the purchaser on closing of title or thereafter on demand, all proper instruments for the conveyance of such title and the assignment and collection of such award.
If there be a water meter on the premises, the seller shall furnish a reading to a date not more than thirty days prior to the time herein set for closing title and the unfixed meter charge for the intervening time shall be apportioned on the basis of such last reading.
The deed shall be in proper statutory short form for record, shall contain the usual full covenants and warranty, and shall be duly executed and acknowledged by the seller, at the seller's expense, so as to convey to the purchaser, the fee simple of the said premises, free of all encumbrances ex cept as herein stated.
All personal property appurtenant to or used in the operation of said premises is represented to be owned by the seller and is included in this sale.