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
part of the Department of Housing and Urban Development (HUD), which sees that complete disclosures are made for land sales. ...
Professional certification granted by the Institute of Real Estate Management, an affiliate of the National Association of Realtors. ...
When you sign a Listing Agreement with a real estate broker or agent, he or she has a fiduciary responsibility to represent your interests exclusively. However, should another client ...
The definition of low-income housing is any house that is either rented or owned by an individual or family that has a monthly household income that does not exceed a certain percentage of ...
Individual who attempts to maximize his or her profitability by investing which the anticipation that a particular investment will go up in value. A speculator will generally be willing to ...
Ability of the size of the land to accommodate the desired economic purpose. An example is having enough space to build a supermarket to meet the needs of the community. ...
Owner-occupied housing. ...
revising the terms of a loan such as when the borrower is experiencing severe financial difficulties. For example, a homeowner lost his job and seeks relief by requesting the lender ...
The real and personal assets of a person at the date of death. The distribution of the assets to the heirs depends on the provision of the will. If no will exists, the distribution is based ...
Have a question or comment?
We're here to help.