Bilateral Contract

Definition

A real estate contract where both the buyer and seller make binding promises (as opposed to one-sided). The standard type of purchase agreement where everyone's obligated and everyone's nervous.

Example Usage

We signed a bilateral contract to purchase the property, meaning we could both be sued if we back out now.

Origin

From Latin 'bi-' (two) and 'latus' (side)—it's literally a two-sided agreement.

Fun Fact

Most residential real estate contracts are bilateral, which is why neither party can casually ghost the other without consequences.

Source: Real Estate Law and Contract Standards

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Home Equity Line of Credit

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assignment of contract

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