Final answer:
A valid real estate contract must contain mutual assent, consideration, capacity, and legality. If any of these elements is missing, the contract may be invalid. It's crucial for these contracts to be in writing and signed due to the Statute of Frauds.
Step-by-step explanation:
To ensure a real estate (RE) contract is valid, it must contain four basic elements. These elements are: mutual assent (an offer and acceptance), consideration (something of value exchanged between the parties), capacity (both parties must have the legal capacity to enter into a contract), and legality (the contract must be for a legal purpose). In addition, the contract must be in writing and signed by both parties to be enforceable in most cases, as required by the Statute of Frauds.
Without any one of these elements, an RE contract may be considered invalid or unenforceable, which could lead to legal complications or the inability to close a real estate transaction. It's imperative for parties involved in real estate transactions to understand these requirements to ensure their agreements are legally sound.