What legal requirement must parties meet to create a valid real estate contract?

To create a valid real estate contract, the parties involved must possess legal capacity to enter into a contract. This means that they must be of legal age, typically 18 years or older, and mentally competent to understand the terms and implications of the agreement. The capacity ensures that the parties can give informed consent to the contract's terms, which is a fundamental requirement in the formation of any contract, including those related to real estate.

While other factors like the agreement on a sale price or involvement of an attorney may contribute to the smooth execution of a real estate transaction, they do not determine the validity of the contract itself. For instance, while agreeing on a fixed sale price is important for the contract’s terms, it is not a mandatory legal requirement for a valid contract. Similarly, although having an attorney involved can provide legal guidance and help in drafting the contract correctly, it is not a legal necessity for the contract to be valid. Full ownership of the property is also unnecessary for contract formation; one can enter into a contract to sell real estate they do not yet own under certain conditions, such as in the case of a purchase agreement contingent on the buyer obtaining financing.