The above definition shows that a purchase agreement contains a promise to transfer the property in question in the future under certain conditions. This agreement itself therefore does not create any rights or interests on the property for the proposed buyer. Under a deed contract, the buyer makes regular payments to the seller until the amount owed is paid in full or the buyer finds another way to settle the balance. The seller reserves the right to the property until the balance is paid; after the last payment, the buyer obtains the legal right to the property. If the buyer is late with the payments, the seller can recover the property. In some countries, a seller who recovers a property must reimburse the buyer for the fair value of the improvements made to the house as well as a reasonable amount for the rent. An important aspect of the use of the acts relates to the period during which a claim can be invoked for breach of an effective obligation. Action contracts are valid options and even the main option for selling financing in most countries. The process usually begins as a negotiation between buyer and seller.
In general, basic and construction conditions cannot apply. The average duration of the contract for the deed is five years, but can be applied at any time agreed by the buyer and seller. The interest rates of a contract on the facts are not regulated, so they can be as high or as low as buyers and sellers may agree. Similarly, payments can be structured in an acceptable manner on any side of the reserve. In some cases, the value of the home can be divided into equal payments, so the full balance is paid until the end of the due date. In other countries, regular payments are put in place, the balance being due at the end of the life in a balloon payment. As a general rule, these contracts can be renegotiated as long as both parties are ready. Unlike a contract or agreement, it is not necessary to consider the legally binding nature of an act. A review is not necessary to make an act enforceable, as an act is the most solemn indication to the Community that the parties want to be required to commit an act.