What is frequently a requirement for a valid real estate contract?

For a real estate contract to be valid, all parties involved must have legal capacity. This means that they must be of legal age, typically 18 years or older, and must possess the mental competency to understand the terms and implications of the contract. Ensuring that all parties have legal capacity is essential because it protects the integrity of the agreement; if one party lacks capacity, the contract may be considered void or voidable.

Other options present requirements that do not apply universally to real estate contracts. Verbal agreements can be legally binding in some contexts; however, because real estate transactions generally require formal written contracts under laws like the Statute of Frauds, they are not typically sufficient alone. Notarization is not a requirement for all real estate contracts, although it can enhance the enforceability of certain documents. Similarly, bank approval is not necessary for the validity of the contract itself; instead, it is often related to the financing process after the contract has been executed. Therefore, having all parties legally capable of entering the agreement is crucial for the contract's validity.