A unilateral contract in real estate refers to a legally binding agreement between two parties, where one party promises to perform a specific action in exchange for the other party`s performance. In other words, one party is obligated to fulfill their part of the agreement, while the other is not.

In real estate, a unilateral contract is usually used to secure the services of a broker or agent. For example, if you`re a property owner looking to sell your home, you may sign a unilateral contract with a real estate agent, where you agree to pay them a certain commission if they successfully sell your property. In this case, the agent is not obligated to sell your property, but if they do, you are legally bound to pay them the agreed-upon commission.

It`s important to note that a unilateral contract is different from a bilateral contract, where both parties are obligated to fulfill their part of the agreement. In a bilateral contract, both parties make promises to each other. For example, if you`re buying a house, you sign a bilateral contract with the seller, where you promise to pay the agreed-upon price, and the seller promises to transfer ownership of the property to you.

Unilateral contracts are often used in real estate because they provide flexibility for both parties. For the party making the promise, they can choose to fulfill their obligation or not, depending on the circumstances. For the party receiving the promise, they don`t have to worry about fulfilling any obligations themselves. Instead, they can focus on achieving their own goals and objectives.

However, it`s important to be cautious when signing a unilateral contract in real estate. Make sure you understand the terms and conditions of the contract before signing it, and work with a reputable real estate professional who can guide you through the process. Ultimately, a well-drafted unilateral contract can help protect your interests and ensure a successful transaction.