How do I know the difference between a professional or generic contract?
My goal is to use a professional contract for my deals. I’m a newbie and need your help. Thanks in advance.
Jacque1
You can use standard contracts for sales and purchases without any issue. It is actually better to use the standard form than a custom document because people don’t want to deal with something different. Everything else (leases, estate planning documents, internal business documents, etc.) should be professional prepared or reviewed.
Jacque1 - I agree with BLL. Here in Arizona we have a standard contract that most people use. It is easier to fill it than try to create a new one… Just my 2 cents. Good luck!
Jacque1,
I started out using the standard contract developed by the local Board of Realtors but quickly made minor and not so minor customizations to reflect specific items on specific sales or purchases. I now have 2 separate contracts on file in my computer, one for sales, one for purchases that I can easily modify if needed. For example, the standard Realtor contract allowed buyers to back out of a deal within 15 days of signing simply by making an inspection for environmental issues and notifying the seller of their intent to rescind the sale. They didn’t actually have to find an environmental issues, simply make an inspection. My contract now limits the inspection to 5 days by a Certified Environmental Inspector and must present a material environmental defect. Additionally, I transfer as much of the negotiable closing costs to the alternate party as possible through rewording standard clauses in the contract.
Also, when buying, I have clauses with big check off boxes that show the sellers I am waiving mortgage, inspection, termite, etc, etc, etc contingencies that other buyers can use to weasel out of the sale ( by the time we sign contracts, I’ve already made all the inspections I need and make sure I am ready, willing, and able to complete the sale)
I find that as long as the contract is typed up, official looking, on legal sized paper, with no cross outs or hand written notes, even the buyer’s or seller’s lawyers don’t really read the contract. I’ve had several “discussions” with their lawyer at the settlement table that they are paying these costs because the contract clearly states they are paying those costs, and the lawyer reviewed the contract before they signed it so he must have approved it or what is it they are paying their lawyer for?
jmd_forest
You guys are just so awesome. You know what you are talking about. Thank you so much for the great advice. So where would I find a contract. I have one that I bought with a program I purchased about a year ago? Thanks again. Jacque1
Jacque1 - Have you tried googling it? Something like Real Estate Purchase Contract + your state? You could probably buy one online for very little money. Or you could talk with a realtor and ask him/her.
Hope this helps… Good luck!
Jacque1,
I’m assuming you are looking for a real estate Agreement of Sale contract. Try leaning on a friend who is a local real estate agent. They should be able to get you a copy. Or pull in a favor from friends who know a local real estate agent. I spent a few hours retyping the contract into a word processing program and now have 2 versions readily available for custom modification and printing.
jmd_forest
jmd_forest - good idea. Just remember to check with your friend ever so often… Sometimes the contract changes. You will probably want to review it every few months to ensure you have the most updated one, which is usually better than the previous version…
Thank you.