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What Is a Unilateral Agreement in Real Estate

A unilateral agreement in real estate is a legally binding contract in which only one party makes a promise or undertakes an obligation. It is also known as a one-sided agreement.

In a unilateral agreement, one party promises to do something or refrain from doing something without receiving anything in return. The other party is not obligated to do anything and has no obligation to fulfill any terms of the agreement. This type of contract is often used in real estate transactions.

A common example of a unilateral agreement in real estate is an option contract. In an option contract, the owner of a property grants an option to a potential buyer to purchase the property at a future date and at a predetermined price. The buyer has the option to exercise the right to purchase the property, but is not obligated to do so.

Another example of a unilateral agreement in real estate is a zoning agreement. In a zoning agreement, a property owner agrees to abide by certain zoning regulations and restrictions, such as building height and setbacks, in exchange for the government not enforcing other zoning requirements, such as property use restrictions.

A unilateral agreement can also be used in lease agreements. For example, a landlord may promise to make certain repairs to the property while the tenant may not have any obligations or promises to make in return.

It is important to note that although a unilateral agreement provides only one party with obligations, it still must meet certain legal requirements to be enforceable. For example, there must be consideration, which means that something of value must be exchanged. Additionally, the agreement must be in writing and signed by all parties involved.

In the real estate industry, unilateral agreements offer flexibility and can be useful in a variety of situations. However, it is important to consult with a legal professional before entering into any contract to ensure that the terms and conditions are fair, legal, and enforceable.

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