Service Contract
Definition of "Service contract"
The term service contract is a written document covering a legally binding agreement signed by two or more parties involved. One of the parties is the hiring person or client, contracting another party for providing a specific service in return for a well-defined payment. Service agreements often referred to as service contracts, differ from contracts signed for goods.
What does a service contract imply?
A contract must include the terms of service to safeguard each involved parties’ interests legally. Subsequently, the customer receives the service they requested in a satisfactory quality. At the same time, the service contract ensures that clients reimburse contractors for their work.
Service contract in everyday use
A service agreement can refer to a deal bought by a homeowner for servicing household items. This contract may be taken out with the contractor or third party. Examples are service contracts on household appliances. A service contract provides the owner with the assurance that the contractor will repair their faulty item at a set fee if problems arise. However, a service contract is usually more costly than paying for repairs as incurred.
Service contract in real estate
Additionally, we can find service contracts in the real estate business too. It’s essential to sign a service agreement before hiring a real estate agent or a broker. Clients, both homebuyers and sellers, employ local real estate agents to represent their best interests in a property purchase or sale. Once signed the agreement, the licensed brokerage will comply with its obligations to the client.
How to write a service contract?
Compiling a service contract begins with the general information of all parties involved. The primary object of the agreement must be revealed, namely the nature of the service. Then, one must include all parties’ considerations or quid pro quo. It should include information on the service or the length of coverage. No contract can be too exhaustive regarding the service aspects and reimbursement coverage. Also, include exclusions to coverage. Introduce paragraphs addressing the duties of all parties involved! By the end of the service, each party will file their claims. A service contract determines the proper way to handle demands for service delivery or payment due as every party’s right.
Popular Real Estate Terms
Same as term prospectus: Document that must accompany a new issue of securities for a real estate company or partnership. It includes the same information in the registration statement, ...
receiving something such as a cash payment. Written statement that something has been received such as cash, real property, or documents. The purchaser should always get a receipt. An ...
Said of property that is bought subject to the existing loan against it. ...
Person who will become the beneficiary if the original beneficiary dies before the insured. It is the policyholder's second election as beneficiary, dependent on the status of the primary ...
Property that is similar in characteristic and when exchanged is a nontaxable transaction. Any property that is not like-king, such as cash (boot), is taxed. As a result, a gain is not ...
An abstractor, or, most commonly known as an abstractor of title, is the individual that determines based on thorough research the condensed history needed for an abstract of title. They ...
Latin term meaning something in exchange for something else. For example, a person rushes through an order for another in return for having first choice in selecting a parcel of ...
Estimated value of property after a specified time period. ...
The term annuity due is a contract that demands payment at the beginning of each period. The most common example of an annuity due in real estate is rent when we consider that most ...
Have a question or comment?
We're here to help.