I understand the parts of the deal, for the most part. I am a little fuzzy on the contract, however. When you’re filling out this contract, you fill out the purchase contract with the seller. You negotiate all your prices and just fill in the blanks…I get that…but, I have a contract that I found for free somewhere out there, it basically states (see below): I have two questions; one, is this pretty standard or should I be looking for something? I realize I should consult an attorney, etc…I haven’t gotten tthat far yet in my checklist…just wanting to know from the experienced folks if this looks on par with what is the “norm”. Second, the bolded bullet point, this means I can choose my closing title company, right? Does it have to be in the same county? I have a title agent that I have already spoke with a little and is able and willing to close my deals…could I go as far to list the name of this title company, including the agent and the address of the firm? Thanks in advance!
In consideration of the sum of $___________ as earnest money due upon completion of inspection period, seller agrees:
The purchase price is to be $_____________ payable in cash at closing
The conditions of this Purchase are as follows:
a) Property is sold in “ASIS”
condition with no warranties made by the seller. Seller will make Buyer aware of any
known facts that affect the value of the Property.
b) Seller and tenant (if any) will make property accessible to show partners, lenders, inspectors, appraisers and
contractors prior to closing.
c) If Buyer is unable to complete the purchase for any reason, the earnest money deposit shall be forfeited to the
seller as total liquidated damages and buyer is released from any further obligation under this contract.
d) If Seller cannot provide clear title, Buyer will be released from any further obligation under this contract; otherwise
Seller promises to sell under this contract. e) Buyer shall select closing agent. Closing to be held in county where property is located.
f) Purchase contract is assignable.
g) This agreement is subject to the final inspection and approval of the property by the buyer 10 business days after
the date this contract is received by buyer.
Taxes to be prorated, any previous year’s taxes to be paid by seller. All attorney closing fees and customary closing
costs shall be PAID BY BUYER.
Closing date shall be on or before 45 days from the date signed below by Seller. Seller grants any extension needed
to clear title or to complete closing documentation. Title to the above described real estate to be conveyed by
Warranty Deed or other customary instrument of transfer. Title is to be free, clear, and unencumbered, free of any
county, city and federal liens. All liens against the property shall be paid at closing by the seller.
This offer, when accepted, comprises the entire agreement of Purchaser and Seller, and it is agreed that no other
representations have been made.
Additional terms are attached to this document (if any).
I often close outside of the county where the property is located…why are you limiting yourself.
All contracts are assignable unless it explicitly states that they are not. I don’t like putting that in as it draws attention to it.
My contracts are subject to inspection and approval in writing on or before closing, and I’ve NEVER had an issue with that “out”.
I want it to be by Warranty Deed, not some “other customary instrument of transfer”.
There are some good things in that one, but it’s sure not one that I would use. I also think it draws too much attention to Earnest Money…when I started I didn’t give Earnest Money as I didn’t have much cash…looking back, I think that was a bad idea, however even doing something wrong is better than doing nothing. I now give $10.00 Earnest Money.
My recommendation…go to a local REIA in your area…get to know the people there that know what they are talking about…find out what contracts they are using and why…and use one of those.
Just my 2 cents…hope it helps…oh, don’t get bogged down in the trivial details. I’ve found that even using a crappy contract is better than doing nothing!
I am not “intending” to limit myself. I have a title company that will do the closings for me. I have already talked to them. That’s the part I was questioning…no matter where I get the deal, I want to bring it back to this one particular title company.
Honestly, I am not a huge fan of the contract myself. It was free, so I grabbed it. I was just wondering if I could use it…
I am not sure what you mean about a contract being assignable by default? Seems most everything I have read says to make sure that verbiage is in the contract…same with the earnest money?
Thanks again,
Chris
PS: Still looking to join the local REI club…but it’s a bit pricey…I have the money to do it, but my funds obviously aren’t unlimited…just want to spend my budget wisely…there are some free and/or minimal cost meetings they hold…I will likely shoot for some of these…
You do not have to put and or assigns into a contract for it to be assignable. All contracts are indeed assignable unless there is an explicit clause within the contract that says it’s not assignable. The bank typically puts this kind of clause in the contract on their properties.
Yes you can bring all your deals back to your title company. If you buy an REO however you must close the front side with the bank and the second side can be done at your title company. I believe sometimes TampaSteph even does it with both closings at her title company. I haven’t done it that way though
Okay, so there does not need to be a clause stating the contract is assignable, correct? There just needs to be some verbiage by name on the contract? Now I am getting a bit confused about all this.
Does anyone have a working contract of sale and/or assignment contract they will share? If not “share”, is there some place I can buy a template or something? I used to work at Chase and we would send stacks of contracts to our clients. Is there any place to order contracts like this in bulk, or is it acceptable to just have the file and print on regular paper each time you submit one?