Ok. I’ve read a lot of the posts here but just can not find the answer to my question. I feel like such a newb for asking but I can’t succeed without the answer to this vital question…
What does it mean to get a property under contract? :banghead
Does this mean I actually sign a contract stating that I will buy/sell the property? Does it mean the seller and I verbally agree that I sell it? Where can I get a copy of a prototype ‘contract’ that could perhaps clear this up for me a bit more. :deal
Sorry if I’m completely oblivious. Forgive my innocence.
Yes you have signed an agreement to purchase.
In California a verbal contract creates a fraudulent contract which can not be enforced if needed so I would say away from them… As for an agreement there are many places to get one…
I’m a Mortgage Loan Officer/Real Estate Investor.
The type of deal will determine the type of contract. A standard Purchase Agreement is sufficient to get started. People are telling you this because there are so many real estate investors/bird doggers out there looking that, if you are lucky enough to find one of those great deals you don’t want someone smoother and a little more experienced to come in and steal it out from under you.
One of the things that WAS useful from Carleton Sheets course is, he includes copies of all kinds of standard real estate contracts in his course that are just “fill in the blank”.
You can also go online or to your local Barnes and Noble and there are kits that have many standard real estate contracts and forms, again they’re just “fill in the blank.”
In the meantime you can just draft a simple “Purchase Agreement” that states the property location, buyer/sellers names, date, terms of the agreement, time frame etc. Then get it signed and notarized.
What are you trying to do?
Eventually, you’ll need to know if you are in a "Warranty Deed"state or a “Deed of Trust” state and things like that.
Once you have a property locked up someone has to pay you to buy the property.
It’s very helpful to get this done and also prevents problems in the future as now you have all your thoughts, meeting of the minds etc, reduced to writing.
One thing you can also do rather than notarizing the entire agreement is simply notarize and record a “memo” of this agreement in order to protect your deal as well.
Remember, until you have it under contract- all you have is a lead.
When you lock it up with an option or contract- now you have a lead that is worth real money.