Boy, all these questions keep popping up in my head and REIclub is the first place I turn to! :biggrin
So where did you all get your forms for the deals you’re doing? I’m in Texas if that makes a difference. I’m looking to do cash deals (then flip) and Sub2s.
I’m in Dallas (Texas) too!.
For buying / selling properties, I use the standard TREC forms found at:
http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp
For leasing, I use a lease custom-drafted by a lawyer (I can’t share that one) that’s very advantageous for me - the landlord. It’s better than the TREC, TAR or TAA lease per multiple resources that have looked at it!
Good luck!
Thanks for the link!
So which contracts do you have the seller sign? Do you just use the ‘one to four residential contract’ or some of the other ones as well?
It depends on the type of property you are purchasing.
For a single family home, duplex, triplex or quad-plex, or townhome that is not zoned as a condominium - with no homeowners association - you would use the “One to Four Family Residential Contract (Resale)” document.
For one of the above w/ an HOA (most condos, townhomes and newer residential subdivisions have an HOA), you would use the same form plus the “Addendum for Property Subject to Mandatory Membership in an Owners’ Association” document.
For a condominium, you would use the “Residential Condominium Contract (Resale)” document (no separate HOA document is required).
Mobile homes, strip malls, raw land, multifamily properties above 4 units, car washes and “other” forms of real estate would use different contracts than above…but I bet you won’t mess with those properties in the beginning.
I fill those forms out myself when no real estate agent is involved. If the seller has an agent involved, I talk with the agent and tell them I am fine with them doing “dual representation” - which they tend to like as they get a bigger commission - and let them do all the paperwork for me, but I do still review the contract. Note: the seller pays the buyer’s agent commission.
Be careful when filling out these contracts - or any contracts for that matter - as they are legal agreements and you can get sued if you screw something up or default on an agreement. So take the time to learn & understand them. It’s not that hard.
If you have a very large chunk of money at stake, albeit cash or credit, OR if you are dealing with a chunk of money that could affect your ability to put food on the table, OR if you are doing any form of non-traditional purchasing (buying a short sale or foreclosure home, buying a house with the intention of assigning the contract to someone else before the property is closed on, etc) - don’t even think about doing your first or second contract on your own - talk with a title company, lawyer or real estate agent to make sure it’s done right.
Great information and very helpful! Thank you, motivatedCEO
I got them from all different places but I recently bought Real Estate Forms Simplified by Daniel Sitarz, attorney-at-law . Not too bad most forms look solid and book is only like 29.95.
I am still in the beginning stages of wholesaling. I have not done my first deal yet I keep hearing people talk about putting property under contact before putting it up for sale after its up for contract I can assign it to an investor. I get that. What documents specifically do I need to put the property under contract before assigning it to an investor? and if im just assigning what kind of assignment contract is best to use these days? ex standard assignment contract or Assignment of Deed of Trust? iv read the standard assign. contract used to be ok but now a days ppl use the deed of trust.