Posted by Debra(SC) on January 24, 2000 at 09:52:35:
I appreciate the blank agreement you linked me with, but is there another one that’s shorter/simpler?
Debra
Update…(long) - Posted by Debra(SC)
Posted by Debra(SC) on January 23, 2000 at 16:09:34:
Got my contract together for that house I have been lamenting over. I decided to got out today and have my husband measure that house that the seller SAID was 2,000 sq ft. The weather is really bad today, so I thought that might tell me what the property looks like when it rains, you know, flooding, etc. Well, first off, the house measured out to roughly 1100 SQ FT (just as I thought), not to mention their is some water accumulation around the house. This was about mid-day and it’s still raining. I’m offering $15,000 cash. I was considering a L/O and get someone who wanted to fix it up with a low down payment, but I don’t even want to fool with this seller unless he takes this rock bottom price.
Thank you all again. It took me a little time, but I took a day off from all RE conversation, etc and regrouped. When I got back to analyzing everyone’s comments, etc., I was able to see a little more clearly. Someone suggested I write a contract that is totally slanted to my benefit, and that’s what I’ll be doing.
Debra
P.S. Here’s a blank sample of my Purchase Agreement. Will someone please give it a thumb’s up or down or any editing I should do? Thanks.
THIS PURCHASE AGREEMENT, dated ___________________________, ___________, is between ___________________________________________, the Seller(s) of ___________________________ __________________________________ and ________________________________________________, the Buyer(s), the Buyer’s Successors and/or Assigns of _______________________________________
___________________________.
Seller sells to Buyer and Buyer Purchases from Seller, upon the terms and conditions contained herein, the dwelling located in the County of ________________________ State of _________________________________, commonly known as ____________________________
______________________________________________________.
The said premises, as described above, with all appurtenances, are hereby sold to the Buyer for a price of ________________________________*.
*Payment to be made upon buyer procuring a suitable buyer or assignee. Buyer may renew under same conditions for ______ terms.
THE BUYER, IN CONSIDERATION OF THE PURCHASING OF SAID PREMISES, AGREES AS FOLLOWS:
IT IS MUTUALLY AGREED that the Seller will accept the sum of $__________________, payable as follows: ______________________________________________________________________________________
_____________________________________________________________________________________.
The Seller, upon payment of said purchase money, shall convey said premises by General Warranty Deed free from all encumbrances except _____________________________________________
and shall furnish a policy of title from a reputable title insurance company at his expense so showing.
Additional provisions:
- Access to the premises. Buyer shall have immediate access to the property and a key to show the property to prospective buyers and/or assigns.
- Maintenance, repairs, and damage of premises.
- Inspection. This agreement is subject to final inspection and approval of the property in writing by the Buyer prior to taking possession.
- Insurance. Seller shall protect Tenant/Buyer’s equitable interest by maintaining hazard insurance upon the property, naming the Buyer as additional insured. In the event of destruction in whole or in part of the property, Buyer shall have the option to proceed with the closing and accept the insurance proceeds for said damage, or to declare this agreement null and void, releasing both parties from any obligations hereunder, except for the return of the monies paid by Buyer which shall become immediately due and payable from the insurance proceeds.
- Assignment. Buyer shall be permitted the right of assignment. If this agreement is assigned with the approval of the Seller, Buyer shall be released from any further liability hereunder.
- Bill of Sale. At the closing, the Seller agrees to convey the _________________, _________________, _________________, _________________ and _________________ to the Buyer by Bill of Sale.
- Taxes and assessments. Seller shall pay all special assessments that are assessed on the premises on or before the effective date of this agreement. The real estate taxes on the premises shall be prorated to the date of closing according to due dates, under the assumptions that taxes are paid in advance.
- Closing. The closing shall be held on or before ___________________________, ___________ unless extended by both parties in writing. The Seller shall be responsible for preparing the documents for the closing. The documents shall be delivered to the Buyer for review at least 7 days prior to closing.
- Notices. All notices required by this agreement shall be sent to the other party in writing. The notices shall be delivered either personally or by first-class mail at the recipient’s last known address. Unless otherwise required by law, the date of service shall be the date of hand delivery or the mailing date.
- Time is of the essence. Time is of the essence in the performance of this agreement.
- Entire agreement. This agreement contains all the representations by each party to the other and expresses the entire understanding between the parties with respect to the contemplated transaction. All prior communications concerning the subject matter are merged in or replaced by this agreement. No modifications of this Agreement shall be binding unless they are in writing and signed by the Seller and the Buyer.
Signed:
Seller Date Buyer Date
Seller Date Buyer Date
ADDENDUM TO RESIDENTIAL PURCHASE AGREEMENT
Regarding the agreement between ___________________________________________ (Seller) and ___________________________________________ (Buyer), dated ___________________________, ___________, both parties agree to the following:
__________________________________________________________________________________.
Signed:
Seller Date Buyer Date
Seller Date Buyer Date
Be very careful… - Posted by Rob FL
Posted by Rob FL on January 24, 2000 at 12:18:03:
…using self-made contracts. You can easily overlook a lot of issues. Here are a few I see just in skimming over it.
-
Most states require a radon gas disclosure and the federal government requires a lead-based paint disclosure. Some states have other disclosures that the buyer or seller may need to give.
-
There is nothing mentioning what happens if the property is destroyed between now and closing. Usually it is a “risk of loss” clause.
-
There is no mention of what happens in case of a default by either party. Specific performance? Liquidated damages?
-
Is the seller going to provide you with a title commitment for you to review before closing? If so, who will pay for it? What happens if title ends up being defective? What defines defective or unmarketable title?
-
Who pays for what expenses? I can’t tell from this agreement who pays for title search fees, closing fees, doc prep fees, recording fees, or transfer taxes. It kind of implies that it is the responsibility of the seller, but I wouldn’t want to debate that in court.
-
How long do you have to find a suitable buyer or assignee? There is no time limit? I ain’t a lawyer but I think most courts would say this clause is vague and unenforceable. Or the court might say you have “a reasonable period of time,” whatever the heck that means.
-
I assume your repair and maintenance clause will be longer than just one sentence. Otherwise, I doubt it would hold up in court.
These are just a few quick thoughts I had. I use our standard Realtor’s contract which is 200+ lines long not including any addenda. Many people say all this legalese is just there to confuse lay people. However, these clauses usually reflect clauses that have been tested in the court system. I don’t want to deflate you here, I just want to point out that you need to be very careful.
Re: Update…(long) - Posted by AJ in (WA)
Posted by AJ in (WA) on January 23, 2000 at 17:11:37:
Debra,
I think your contract may be a little loose in verbiage, here’s something that might help to tighten it up some. Let me know if you’re not able copy it and I’ll e-mail you the file.
http://www.nwlink.com/~andyt/purchase/blank.htm
AJ
ATTN: Jim from Phoenix(RADON) - Posted by chris
Posted by chris on January 24, 2000 at 12:39:09:
Rob-
I wish you were around last week when Radon came up. Jim from Phoenix asked about a Radon disclosure and the best thing I could find was the EPA website where you could order a buyers and sellers guide to radon.
None of the forms at the forms websites mention Radon that I have found. I noticed Sheets’ form does give a mention of RESPA but it is broad.
What needs to be added to meet Radon disclosure to contracts and is there a certain property age such as the 1978 lead requirement? I know that you have a good library of websites at your disposal-please guide us.
-Thanks, Chris
Thanks A.J… - Posted by Debra(SC)
Posted by Debra(SC) on January 24, 2000 at 06:00:57:
I edited that agreement from a lease purchase I found in one of my courses. Thanks for helping me. I didn’t want to look unprofessional, and I certainly wanted to cover myself against all liability. The link you sent worked fine and I was able to print it out.
Debra
Re: ATTN: Jim from Phoenix(RADON) - Posted by Rob FL
Posted by Rob FL on January 24, 2000 at 14:14:53:
It is my understanding that Radon disclosures are done on a state by state level. I did a little research and in Florida, it is directly a part of the statutes. Here is the law:
http://www.leg.state.fl.us/citizen/documents/statutes/
StatuteBrowser99/index.cfm?mode=Display_Statute&url=
CH0404/SEC056.HTM
It is right near the bottom of the statute. For more info on Arizona statutes, I would do some searching at www.alllaw.com, www.findlaw.com, or www.lawguru.com. I just went to the Florida statutes and word searched “radon.”