Newbie question about purchase contract? - Posted by Scott(CO)

Posted by The Donald on June 21, 2000 at 15:05:16:

Yep - that’s probably the most relevant that you’ll find. Stay away from Russ Whitney and Carleton Sheets as their info is simply US material adapt for a Canadian market. Aaron approaches his specifically from a Canuck perspective - so it’ll probably be of the most benefit to you.

Good luck :slight_smile:

Newbie question about purchase contract? - Posted by Scott(CO)

Posted by Scott(CO) on June 20, 2000 at 12:48:27:

Could someone let me know who you make an earnest money deposit check out to when no realtors are involved?
Do you make it out to the ‘title company’ that you have listed in the purchase contract? Do I take the check to the title company if this is the case?
Also, who keeps the original contract? who copy?

I’m trying to get that first deal and trying to figure out all the details of the contract.

Thank you for any help.

Re: Newbie question about purchase contract? - Posted by Shenesa

Posted by Shenesa on June 21, 2000 at 15:24:10:

Oops! I did not know that. I thought you made the check out to the seller. That is exactly what I did.

Live and learn. Now I know. Guess I won’t be doing that again:)

What is the danger especially if it is a check? #1 If the sellers dispute it, you have it in writing and #2 the check will serve as a paper trail so there is no way he/she would dispute it.

Shenesa,NY

Re: Newbie question about purchase contract? - Posted by The Donald

Posted by The Donald on June 20, 2000 at 15:44:27:

Make it out to YOUR lawyer or solicitor or attorney or title company - but never to the Vendor or seller.

Works fine here in Canada (Ontario) - except where Realtors are involved, as they’d rather hang on to your money just in case - so that they can ensure performance of their commission.

As they say, possession is 9 tenths of the law!

Good luck :slight_smile:

Re: Newbie question about purchase contract? - Posted by Thom

Posted by Thom on June 20, 2000 at 14:49:41:

Scott:

Use title company or other escrow account, never the seller, for earnest money.

Have two sets of the contract with original signatures,
one for you and one for the seller, make sure every page is initialed.

Where are you in Colorado?

Thom.

Re: Newbie question about purchase contract? - Posted by The Donald

Posted by The Donald on June 21, 2000 at 16:05:17:

That’s why we’re all here - to learn ! :slight_smile:

Yep - CYA, and make sure your cheque (as we Canucks spell it) is never made out directly to the Seller.

Why? The danger is simply that in the case of a dispute, you’ll not be able to get YOUR money back as quick as you’d like - or maybe never at all.

There are a myriad of reasons that a deal won’t go through - and you need to have someone protecting YOUR interests and YOUR money - and it certainly is not the seller.

Since possession is said to be 9/10ths of the law, you can kiss your hard earned cash goodbye - or take 'em to court - if you sign it over to them on the spot.

Now if you write that cheque out to YOUR attorney or RE agent, and state in the memo or even the pay to line the additional words “IN TRUST”, they have to treat your funds as moneys held in trust until the completion of a deal or dissolution thereof.

Nice legalese, it just mean your assets are covered moreso than just giving it to the seller straight up.

If the seller balks, then write it to the seller’s attorney with the “IN TRUST” notation.

Donald–Since you are in Canada - Posted by Brenda K

Posted by Brenda K on June 21, 2000 at 11:33:38:

Since you too are in Canada I am wondering if you found any really good courses specifically geared toward Canada Laws etc. I have been thinking of purchasing some of Raymond Aarons courses http://www.aaron.com/realestate2.html
Have you heard of these or tried any of them??