It seems I have lots of questions today! I’m hoping that others will find benefit to the replies that come back to these questions … especially beginners like myself.
Anyway, I reviewed that TREC form w. my lawyer today and was trying to figure out what the protocol is for breaking down the sales price into down payment vs. financing. Given the fact that I will not know how much my buyer will be putting as a down payment vs. financing … or where he/she will be getting the money from … how should I break this down in my contract with my seller. I was thinking that I would put the entire sales price down as cash … but wasn’t sure if this would be appropriate. What do y’all think?
Thanks!
Juliet,
I typically just put cash as it is taken more seriously. However, if you end up with a deal that you expect to close regardless, you’ll need to let the title company know up front if it won’t be cash. Otherwise, the normal processes will mess up, like title commitments, insurance, etc.
If you expect your buyer to close, then you will still have to work closely with the title company to leave the title policy and other items open, rather than making them do double the work and at the last minute.
You will normally have a separate contract with your buyer and it’s not necessary to match your contract to theirs, so don’t worry about guessing.