OfflineWhen I find a house that I am wanting to lock up and eventualy reassign in a few days to another investor...would this be the contract I sign with the person who has the home for sale?
I filled in the blanks with some fake information and I know I have left out some important info. Maybe someone has can help with the left out information.
I think *10 should contain my bailout clauses?
Thanks
_________________________
Purchase and Sale Agreement
This agreement is made this __8th__ day of ______August_______________, 20_08_____
between Seller(s)______Suzi Seller___
Social Security #____555.555.5555__
and Buyer:____ Suzi Buyer and or assignees.
Seller agrees to sell and buyer agrees to buy the following described real property together with
all improvements and fixtures and the personal property described below:
Street Address____1234 Anywhere St.__
Legal description: _______________________________________
____ County: _Mycounty_______________.
Personal property included: _None______________
Earnest Money Deposit $___1000.00_____________
Cash To Seller At Closing $_99,000_______
Existing Loans & Liens $______________________
New Loan To Seller At Closing $____________
Purchase Price $100,000___________________
The purchase price to be paid as follows:
1. EARNEST MONEY to be deposited with licensed title company or attorney within 48 hours of acceptance by
seller. The buyer will take title subject to the following loans on terms agreeable to the buyer:
A. Loan to _______
Balance$____________________________
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_______________________________
Any overstatement in the above loan and
lien amounts will be added to note to seller.
Any understatement will be
deducted from balance due at close.
2.THE BALANCE DUE SELLER in the amount of $ 99,000_shall be paid as follows: CASH/CHECK at
time of closing___________ including interest at the rate of:_____________________________________
______________________________________________ including interest at the rate of
_______%.
3. PRORATIONS, IMPOUNDS & SECURITY DEPOSITS: Loan interest, property taxes, insurance, and rents shall
be prorated as of the date of closing. All security deposits shall be transferred to buyer at closing. All impound
accounts for taxes and insurance are included in the purchase price and shall be transferred to buyer at closing.
Any shortage in these accounts shall be charged to seller at closing.
Page 2 of 2 Purchase and Sale Agreement
4. CONDITION OF HOUSE AND APPLIANCES: Seller warrants that the house and all mechanical systems and
appliances will be in good working order at closing. Buyer will have access to property for inspection and the cost
of any needed repairs will be paid by seller at closing. Appliances and other personal property will be transferred
by bill of sale free of encumbrances at closing.
5. CLOSING DATE AND TRANSFER OF TITLE: This transaction shall close on or before 10-8-_______________,
20_08__. Closing will be held at _My Title Co.____and Seller(s) agree to transfer marketable title
free and clear of all encumbrances except those listed and pay any required state taxes or stamps required to
record deed and mortgage. Seller agrees to furnish title insurance in the amount of the purchase price, showing
no encumbrances or exceptions other than previously noted.
6. DAMAGE TO PROPERTY: Seller shall maintain property in its current condition and keep it insured against all
loss until closing in the event of destruction covered by insurance, buyer may elect to close and collect the
insurance proceeds.
7. DEFAULTS: If buyer defaults under this contract, any and all monies deposited by buyer(s) shall be retained by
seller as full liquidated damages. If seller defaults, buyer may pursue all remedies allowed by law and seller
agrees to be responsible for all costs incurred by buyer as a result of sellers default.
8. SUCCESSORS AND ASSIGNEES: The terms and conditions of this contract shall bind all successors, heirs,
administrators, trustees, executors and assignees of the respective parties.
9. ACCESS ADVERTISING AND REPAIRS MADE BY BUYERS: Sellers agree that buyers may advertise
property and have access during reasonable hours to show property to others. If the property is vacant and in
need of repairs, buyers at their expense may make repairs and improvements, and any improvements made shall
become the property of the seller should the buyer default,
10. ADDITIONAL TERMS AND CONDITIONS:
______________________________________
_________________________________________
__________________________________________
___________________________________________
The undersigned have read the above information, understand it and verify that it is correct.
SELLERS:
___Syzi Seller___________________
BUYERS:
___Suzi Buyer______________________
__________________________________
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Would this be the next contract I should use after I find a end buyer?
Assignment of Contract
The undersigned Assignor, having executed a contract dated
_____________________ between
______________________________________
Contractor, and
_____________________________________
Contractee
concerning the property described as:
___________________________________
___________________________________
__________________________________
___________________________________
hereby assigns all rights to said contract to:
_______________________________________
("Assignee")
in exchange for compensation in the amount of $_________________________.
(________________________________________)
Assignee agrees to fulfill all terms, conditions, and contingencies of
said Contract and to perform as required in good faith and within any time
periods established by said Contract this _____day of _____________,
20_____.
____________________________________
Assignor
____________________________________
Witness
____________________________________
Assignee
____________________________________
Witness
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Where'd you get this contract? I didn't see any escape clauses. Oops, you beat my post... LOL! The purchase agreement I mean. Is that Dean's contract?
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
you got it, as for the escape clauses couldn't you put your contingencys where it's stated "OTHER TERMS AND CONDITIONS?", i'm pretty sure that would work, SULLY
YOUR HERO, SULLY
Have you seen Dean's contract? Take a look at it. I would recommend using his instead of this generic one. He covers ALL the bases so YOU'RE protected completely and there's no confusion later. You can modify it if you like, but I'd definitely use his. That's my opinion hon.
God bless you,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
ASSIGNMENT OF REAL ESTATE PURCHASE AND SALE AGREEMENT
THIS ASSIGNMENT is made this ____ day of ____, 200_ by ______________ (hereinafter referred to as
"Assignor") to _________________ (hereinafter referred to as "Assignee").
W I T N E S S E T H :
WHEREAS, Assignor has entered into a certain Real Estate Purchase and Sale Agreement with _______________
as "Seller" and Assignor as "Buyer" which Agreement was executed on _______________, by said Assignor and on
___________________, by said Seller for the purchase and sale of certain real property being, lying and situate in
_____________________ County, _______________, and more particularly described in said Agreement, copy of
said Agreement being attached hereto as Exhibit "A"; and,
WHEREAS, Assignor desires to assign, transfer, sell and convey to Assignee all of Assignor's right, title and
interest in, to and under said Real Estate Purchase and Sale Agreement; and,
WHEREAS, Assignee is desirous of receiving all of Assignor's right, title and interest in, to and under said Real
Estate Purchase and Sale Agreement;
NOW, THEREFORE, for and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged, Assignor has assigned, transferred,
sold and conveyed and by these presents
does hereby assign, transfer, sell and convey unto Assignee all of Assignor's right, title and interest in, to and under
said Real Estate Purchase and Sale Agreement.
Assignee hereby assumes all of Assignor's duties and obligations under said Real Estate Purchase and Sale
Agreement.
This Assignment shall be binding upon Assignor and shall inure to the benefit of Assignee and its successors, heirs
and assigns.
IN WITNESS WHEREOF this Assignment has been signed, sealed and delivered by Assignor and Assignee as of
the day and year first above written.
Witnesses: "Assignor"
____________________ __________________________
____________________
"Assignee"
____________________ ___________________________
____________________
State of ______________________
County of ______________________
On ________________, 200___, before me, _______________________, a notary public in and for said state
personally appeared _________________________________, personally known to me (or proved to me based upon
satisfactory evidence) to be the person(s) whose name(s) are subscribed to the within instrument and acknowledged
that (s)he/they executed the same in his/her/their signature on the instrument the person(s) or entity on behalf of
which they acted, executed the instrument.
_________________________ ________________________
Signature of Notary NOTARY SEAL
My Commission expires______
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Elena
Those are the contracts that Dean has put here on the forum for us.
My problem is being so unsure as to who's name goes where and what information goes where etc..
So far I have not been able to find anyone who has a completed contract that I can look at so I will be able to know what goes where. I just like everything to be totally accurate when it comes to dealing with contracts, money and peoples homes they have for sale.
I know I will make all kinds of mistakes along the way but with all of you and the knowledge each of you have...I have a better chance of getting it right. LOL!
Sissy
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Someone posted some great escape clauses somewehre here on the forum and I cannot seem to find that post.
It might have been you or Elena or Anita who posted them?
I have been searching for those clauses.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Anita has a sample contract on her post that is filled out. I'll try to find it for you. When I bought my second property using my own contract I was so nervous and excited that I signed as the seller instead of the buyer... LOL! It wasn't a big deal, the seller pointed it out to me, we both chuckled over that and took care of it.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I think one of the coaches had a list of escape clauses.
First one to find it gets 20 extra points. Just kidding!!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Here's one from Anita. I'll keep adding as i find them.
http://www.deangraziosi.com/node/5330
Ah HA! Here's another one (good ole Anita)
http://www.deangraziosi.com/node/5731
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I have a copy of one contract that Anita shared with all of us but it was something like a 7 page California Real Estate contract. Is there another one she has posted? Maybe I overlooked it. I need a simple little contract so my brain can absorb it. LOL!
20 points? Go find those clauses!!!
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Ha Ha! You get the 20 points sister! LOL! Seriously, see how much everyone here wants to help you Sissy? You can't go wrong with this group sister.
No, that was the one I was talking about. I know it's a biggy, but you just wanted to see where to sign and stuff. That should give you a good idea even though it's as long as the Declaration of Independence... LOL
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Everyone is always so kind and helpful when I need a question aswered. I seriously don't know what I would do with out you all.
I think here in Arkansas I would need escape clauses like:
*I refuse to buy the house if the porch caves in and more than 8 dogs are injured or killed.
* I refuse to buy the house if I find more than 5 old wrecked trucks in the 8 foot tall front yard grass.
* I refuse to buy the house if the outhouse is more than 30 feet outside the back door.
OK...that is my Arkansas joke for the day.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
that was great! my mom is laughing too
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
LOL! Oh my gosh, I almost fell over laughing! Good ones, I always enjoy a good laugh. Thanks! ;D
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I was already laughing from those goofballs (Elena & Anita) PMing me, and then I READ YOUR CLAUSES! You guys are killing me!!!!! LOL!!!!!!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
It is not far from the truth. Arkansas is still a very laid back place and so so many homes have the FSBO signs out front and have been there so long a lot of the time I cannot even read the phone number because it is faded out or the hound dogs licked the number off the signs.
Arkansas is still a nice place though.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Those darn hound dogs! See if the number's still on their tongue... LOL! Good night all... I'm out!;D
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Did you get any help from this thread Sissy? What else do you want to see?
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
You all have been so helpful and thank you for all this information.
I should be ok unless someone agrees to sell the their home and they have 2nd and 3rd mortgages and then I might have to hollar back at you to see how I fill out the lein or mortgage part of the contract.
Thanks again and tomorrow I am going to try to find those hound dogs.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Should this contract of Deans also be included when signing the Purchase and Sell Agreement? I also found this contract on Dean's list of doccuments:
INSPECTION CONTINGENCY ADDENDUM TO PURCHASE AGREEMENT
Date ___________________________Page _________________ of ___________________ Pages
Addendum to Purchase Agreement between parties:
_______________________________________________________________________________
_______________________________________________________________________________
dated______________________, pertaining to the purchase and sale of the property at:
_______________________________________________________________________________
_______________________________________________________________________________
This Purchase Agreement noted above is contingent upon an inspection of the property to
determine the condition and performance relative to the intended function of the following
checked items:
( ) Central heating system
( ) Foundation
( ) Central cooling system
( ) Plumbing system
( ) Electrical system
( ) Exterior
( ) Roofs
( ) Walls
( ) Basement
( ) Ceilings
( ) Floors
( ) other
(specify):_______________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
( ) All of the above.
( ) Complete Home inspection.
The inspection shall be performed by an inspector of the Buyer(s) choice. Inspector should be
qualified to do inspection as evidenced by a license or professional designation. Buyer shall satisfy
Seller as to the qualifications of the Inspector(s). Said inspection shall be at the ( Buyer's / Seller's)
sole expense. Seller agrees to make the property reasonably available for said inspection.
Any inspection or tests done by FHA, VA, or other governmental unit shall be done and paid for
in accordance with the applicable regulations and are not part of this inspection Contingency.
Routine maintenance items are not part of this contingency.
The inspection shall be done within ____ business days of final acceptance of this Purchase
Agreement. If Buyer or anyone representing Buyer discovers any defects in the above specified
components of the property, Buyer must notify Seller or Seller's agent in writing, describing such
defects within ____business days after the inspection. The Buyers objections shall be limited to
deficiencies that adversely affect the structural and/or mechanical integrity of the building or its
components or the health and safety of the occupants. If the Buyer notifies the Seller of such
defects, and if within ____ business days after such notice Buyer and Seller have not agreed in
writing as to whether repairs will be performed, defects waived, or an adjustment to the purchase
price made, the Purchase Agreement will automatically become null and void without further
notice required, and all deposits or earnest money paid by Buyer will be promptly refunded.
Buyer and Seller agree to sign Cancellation of Purchase Agreement, and thereafter neither party
will have any further liability to the other. However, notwithstanding any provision to the contrary,
or any notice given, the Buyer may unilaterally waive defects, providing that the Buyer notifies
Seller or Seller's Agent of waiver in writing within the time specified. If Buyer fails to have the
inspection performed, or does not notify Seller within time specified above, this contingency
shall be deemed removed and the Purchase Agreement shall be in full force and effect.
Seller and/or Seller s agent (SHALL) (SHALL NOT) have the right to continue to offer the
property for sale until this contingency is removed.
______________________________________________ ________________________________
(Seller) (Date)
______________________________________________ ________________________________
(Seller) (Date)
______________________________________________ ________________________________
(Buyer) (Date)
______________________________________________ ________________________________
(Buyer) (Date)
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Also when I find a house that I want to make an offer on is there form I can use that will show the owner how much I am offering? I didn't see one in Deans doccuments...
I would just like to have a nicely worded statement showing my offer.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Dean's Agreement to Purchase (or Purchase Agreement, Offer to Purchase)
http://www.deangraziosi.com/documents/Agreement-to-Purchase.pdf
is the best one to use, like Elena said.
This will tell the seller everything he needs to know about what you are offering. And, yes, you would also include the inspection contingency addendum.
Now I'm looking at the document link I gave you (Agreement to Purchase) and the one in your original post (Purchase and Sale Agreement). They are both from Dean's forms and docs and seem to ask for similar information. I'm not sure which is the right one to use. (I always use the standard WI form my realtor has, but I know Dean's are probably worded better for investors)
Anita, Elena, coaches, can you clarify whether these are 2 versions of the same thing, or for 2 separate situations?
Sissy, I don't mean to be creating more questions, but I'd like to clear on this, too.
We'll see what the "legal experts" say when they come on.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
You aren't creating more questions...only very useful information.
So I wouldn't need to attach a "cover letter" (so to speak) to the Purchase Agreement with a short letter telling my offer for their home?
Sissy, I don't mean to be creating more questions, but I'd like to clear on this, too.
We'll see what the "legal experts" say when they come on.
Rina
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
i would @ least, it's called a LETTER OF INTENT, and when i put in an offer(most of the time) i use the LETTER OF INTENT.
As for the INSPECTION CLAUSE: i add one to every deal or @ least try...that is used as one of my escape clauses, SULLY
YOUR HERO, SULLY
That is really a great template, Seems carefully drafted...
Essay writing
Yes, It could happen today. I mean my first assignment of a contract deal. I have the owner agreed to a set price and the buyer is ready. She said "write it up"
I have been reading the assignment of contract on this site and the explanation of the contractee and contractor and assignee. These are written in 2009. Is there any new thing? Anything that needed to be updated?
Is the assignment of contract on this site good enough today?
And for the EMD, do I have to put something there for the seller, even though I and the seller have been on this for about 45 days. I originally put $1000 to smooth the deal but I don't have that personally. Maybe I should put something in there? What is the suggested something?
Finally, pray for me that this goes through. I will let you know.
PS. I will be reading this site for your thoughts today. I need all the help I can get. I have about 5 hours before I meet with the seller and about 6 or so hours before I meet with the buyers.
Thanks for all your help.