Choice of contracts??? - Posted by vic - FL

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.

http://groups.msn.com/raycomoshousebuyingkingdom/_whatsnew.msnw

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.

Choice of contracts??? - Posted by vic - FL

Posted by vic - FL on October 28, 2003 at 11:56:09:

I have not seen this subject addressed here.

I always hear “Don’t try to save money when it comes to using the proper contracts - always check with an attorney before you start.” But there are “gurus” who brag that they use a one-page contract, because it doesn’t intimidate the seller. Both bits of advice can’t be right! Although it is tempting to use a simple contract, is it dangerous to use an abbreviated one-page contract instead of the standard document?

I’d appreciate guidance on this, and would also be interested to know if there are people in Florida who are using short contracts and not having problems with attorneys looking at the document and asking “What kind of a contract is this?”

Re: Choice of contracts??? - Posted by chris-atl

Posted by chris-atl on October 28, 2003 at 13:26:23:

I have a 1-pager that I use sometime, it just depends on the situation. But as long as your contract contains all the necessary legal parts, you’re cool. The thing with longer ones is that you can put more into it that protects you.