We are not attorneys. Period. We are not giving any legal advice. Period.
Contract Terms
Date
Name
Legal description
Things that are included in the sale
* Appliances
* Person property
Purchase price
* Numbers and word
Earnest money
* $1000 or up
* $2500 to $5000
* Land deals start around $10,000
Default
* We forfeit the earnest money
* Don’t give them the right to sue you
Closing date
* On or before…
* This allows you to close early without signing more paperwork
* You could also have closing date on a separate addendum
* Closing shall occur on or before 30 days of the city approving some permit…
Possession date
* On closing
* If there is a tenant you have to honor the lease
* Sometimes there are rent backs
Offer expiration date
Closing agent
* Request the services of a closing agent to pay the utilities
* Closing agent will pay off any utilities
****Be best friends with title company and closing agent!****
Charges and assessments due after closing
* Depends on what you are going to pay
Call out any type of addendum that you might have
* There are attachments
* Legal description
* Instruct title company to have the
****Don’t write up contract by yourself.****
Earnest money again…
* You can decide when the money is due
* Get it paid on time!
* Treat everyone fair!
BE A GOOD PERSON!!!
Conditions of the title to close
Closing costs
* Who’s paying the proration of fees
In our state the seller pays the excise tax, and we split the closing fees.
Know your numbers because you might have to pay more than you think.
Your title company or escrow agent can go over everything with you.
Know if your seller is a foreign.
FIRPTA
* Has to do with tax withholdings if the seller is not a resident of the US.
Make SURE your contract is assignable
* Most MLS contracts say that you cannot assign
* Write that buyer can assign the contract without sellers consent.
What is the buyers default in your contract
Make sure that (if appropriate) the seller is not required to pay real estate commissions.
Contingencies in contract
* Property inspection
* Depends on the situation
* Reasonable is 10 days (and that’s long)
* Septic – checked, pumped, etc
* Payment is negotiated
* Title contingency
* Give yourself 5 days upon receipt from title company
* Prior to closing the home must be vacant
* Don’t close unless the seller is out
*We get rid of contingencies prior to assigning contacts
Access and permissions
* Seller is giving you access to the property
Buyer is purchasing the property with the intention of making a big profit
* Ask lawyer how to say this in the contract
Items left behind by the seller and not removed by the closing date are now the property of the buyer.
If you are a real estate agent you must disclose that you are a real estate agent
It is a myth that you should not get your real estate license if you are an investor. Seriously!
For sale by owner addendum is important!
* Covers your butt!
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