Posted by Brent_IL on October 28, 2003 at 12:38:54:
In my experience, if a seller feels comfortable with you, they will not be intimidated by your contract. The average real estate board contract is intimidating, but people sign them every day despite the fact that most do not understand the terminology used in the contract because their REALTOR® says, ?Sign here.?
Ray Como, an innovative thinker I greatly admire, uses a simple one-page contract.
Ray?s theory is that since a purchase contract will never address all possible occurrences and interpretations, the purchase contract is a way to tie up the property through closing by mutual agreement on the essentials while keeping negotiations on non-essentials open for discussion. Although I eventually went the route of a more elaborate and extensive purchase contract, I incorporated many of his ideas into the contract that I use.
I think that the type of contract that you use should depend on the types of deals that you?re looking for. I don?t believe a rehabber would need more than a one-page contract to guarantee clear title. Someone who envisions a sandwich position with outside investors providing cash may require something more.
It’s wise to have a good real estate attorney look over your contracts regardless of their length. It’s never a good idea to use a contract that you don’t understand completely.