I am about to do my first deal and am buying a house from another investor. I have the hard money lender lined up and need to generate a contract. Since I have never purchased a home this way before I am not sure what to include in the contract.
The deal is a cash purchase with settlement within 30 days. I am thinking that I cant’ include any of the usual contingencies typically found with traditional purchase/financing.
What should I include in my contract for a cash sale?
well if you’re including things like subject to - for inspection etc. - that’ most common - you want the right to get out of the contract if an inspector finds damages to the property - and also buyers inspections at certain points through the process.
you have consult an attorney really.
you don’t HAVE TO HAVE an attorney represent you in a real estate transaction - they’re not required…in New York, Texas anyway -
but if you’re doing this for the first time, or first 10 times, you really should have an attorney representing you - go over the contract process with them -
and that’s a REAL ESTATE ATTORNEY - RESIDENTIAL
if you buy commercial - use A COMMERCIAL REAL ESTATE ATTORNEY
big difference.
anyhow - if you’re paying cash and it’s definitely lined up, meaning you have it in YOUR bank account - well that’s fairly simple - buyer agrees to pay X
a real estate contract must have a legal description of the property being purchased. it must be for a clearly stated amount and payment method should be identified.
a sellers name and a buyers name or nominee
there’s a delivery of the contract and an acceptance.
within the contract will most likely be all sorts of things like who’s paying for what and a bunch of other legalese stuff.
but even all this stuff is not necessary. you could have it where it says, seller will pay all associated closing costs. especially if it is a cash deal
again - forget trying to get answers on here - pay a real estate attorney to rep you, period, preferrably one that invests himself - if they’re a real estate attorney, you’d think that’s a given, but it isn’t always - the more they know about investing in real estate - the better off you’ll be because they won’t give you a hard time, they’ll just do what you say.
i had an attorney tell me “the process” and he was dead set against me even making offer letters subject to attorney approval. ridiculous.
some attorney’s only operate within the “boiler plate process” as a real estate investor - if you want to make a deal happen, have the cash and know what you’re doing - you’re not going to sit around and have RE agents write up “binders” - you’ll be making offers that can get you a property yesterday - especially in a competitive market.
you’re not there yet. and i’ve never done a real estate deal without an attorney.
Thanks for the advice. Can anyone recommend a lawyer in the Baltimore area?