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Author Topic: Contract question  (Read 3730 times)

Offline real deal

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Contract question
« on: January 01, 2007, 06:11:47 pm »
 When making a purchase contract with buyer,does seller need a copy also? or do you just need one

Offline reiauctions

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Re:Contract question
« Reply #1 on: January 01, 2007, 07:49:44 pm »
Typically the contract will go to the title company or attorney handling the closing.  It's a good idea to offer a copy to the seller.
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Tom Wood

Offline real deal

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Re:Contract question
« Reply #2 on: January 01, 2007, 08:20:08 pm »
 Ok,so does the contract have to go immediately to title company,or can you just hold on to it until you find a buyer(if planning on double closing).Is it important to put money in escrow or wait until you find a buyer? How much earnest money do you need(or does it require) to put down on the deal?

Offline reiauctions

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Re:Contract question
« Reply #3 on: January 01, 2007, 08:35:34 pm »
Others may have a different opinion, but I feel it should go to the title company as soon as possible.  You want the title work started and to make sure there isn't a problem.  One of the first things an interested buyer should ask you is "has the title work been done?"  The title company can hold the escrow money and you can put down whatever you get the seller to agree to.  You do have to put down something or it isn't considered a legal contract.
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Tom Wood

Offline real deal

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Re:Contract question
« Reply #4 on: January 01, 2007, 09:04:44 pm »
Reiauctions: in my state we dont have to present a contract before they start a title search,all we do is call the title company and give the info. and they'll do the search.My next question is this,if i put the earnest money down,get the contract,and i dont
find a buyer in time,will i get all that back?  The main reason that i'm trying not to do this first is that im bringing in some contractors to give me a written estimate of repairs,so if comes up to where my profit is lower then maybe i can renegotiate before submitting the contract.                    

Offline real deal

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Re:Contract question
« Reply #5 on: January 01, 2007, 09:12:52 pm »
I got a new question,I have an "option to purchase agreement",its not a pro or standard purchase agreement,all it says is that i have the option of purchasing the property for such and such and gives place for the date,location of property,the owners name and signature,and the buyers.If i find a buyer,then would i go back and get a regular purchase agreement filled out? or can i double close with just this one?

Offline reiauctions

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Re:Contract question
« Reply #6 on: January 02, 2007, 08:21:36 am »
To answer your first question.  You are correct any title company will do a title search without a contract, I was just suggesting you didn't run one until you have a signed contract.

As far as getting your earnest money back, that depends on your contract.  In your case you should have an inspection clause that states you have a right to cancel the contract based on the inspection.  Most standard contracts have this clause.  Then you would get your earnest money back.

Haven't worked much with options so I'll leave that question for someone else.
Internet Auctions for Real Estate
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Tom Wood

Offline Diqueze

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Re:Contract question
« Reply #7 on: January 03, 2007, 12:29:19 pm »
I got a new question,I have an "option to purchase agreement",its not a pro or standard purchase agreement,all it says is that i have the option of purchasing the property for such and such and gives place for the date,location of property,the owners name and signature,and the buyers.If i find a buyer,then would i go back and get a regular purchase agreement filled out? or can i double close with just this one?


Real Deal  -  You need 3 docs

Lease
Option to Purchase
Purchase Agreement

What forms are you using - where is your lease ??
Better yet, what type of option are you trying to complete ??


Offline real deal

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Re:Contract question
« Reply #8 on: January 03, 2007, 05:48:41 pm »
Im using an otion to purchase agreement,im not leasing,so i dont need a lease.Im just tying up the contract with an option to purchase it,then when title check,contractors estimates,and buyer is found then i will get a pro purchase contract filled out(if everything else looks good) then i will proceed and do a double closing.

 




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