Purchase and Sale contract

Bird Dogs, Wholesaling
1

Hi All,

In the Purchase and Sale Agreement that I am planning on using, there’s a section called EARNEST MONEY. In my contract it reads as follows:
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  1. EARNEST MONEY to be deposited with licensed title company or attorney within 48 hours of acceptance by seller. The buyer will take title subject to the following loans on terms agreeable to the buyer:

A. Loan to _______________________________________ Balance $Interest rate: _________ %, Monthly Payment $ Loan Number Date last payment made______ Loan current through _________________

B. Loan to ________________________________________ Balance $Interest rate: _________ %, Monthly Payment $ Loan Number Date last payment made_______ Loan current through _________________Other liens: ________________________________________________________________________________
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Questions

  1. What do I include in this section if at the time I am still not sure how I will finance the deal?

  2. Isn’t the EARNEST MONEY deposit, just that? A deposit to hold the property (ie, $50, $100)?

Please advise.

Thx!
rv

2

you are fixin to enter into a contract, the seller has the right to know how you are plannin to pay for the property they are fixin to take off the market, you should know the answer to these questions prior to submitting an offer that may become a contract, if you do not understand the contract it is best to hire a real estate attorney or a licensed real estate agent to assit you.

3

Howdy RV:

The contract you copied is a subject to contract where you are buying the property and making payments on the sellers loan without doing an assumption or getting a new loan. This may not be the way you are going to do the deal. If not you need to use another contract or another part of this one. Justmyopinion is correct in that you need to know beforehand how you plan on financing the deal. Often times you will even need to be pre-approved before sellers will even accept your offer, especially when dealing with REO property.

LOL