First, Realtors can’t require a buyer to use their contracts. They must submit any type of offer that the buyer makes, to include one made on the buyer’s own contract. Having said this, using your own offer typically creates more problems than it’s worth to me, and for that reason I use the standard Realtor forms with an addendum. But I want to stress that there is no requirment to use the REaltor forms.
Earnest money is a negotiable term in the contract…as is the place that the earnest money is to be deposited. This is a term that is to be decided between the buyer and seller, not the Realtor.
Again, many Realtors may in fact be confused as to what the “rules” are, and may tell you that they “have” to hold the earnest money, or that offers “have” to be made of their forms. It’s not true…but it may simplify your life if you go along with these partiuclar idiocies.
Writing Up Contract…A Few Questions… - Posted by Cathryn
Posted by Cathryn on January 13, 1999 at 21:16:39:
I want to make an offer to buy a duplex tomorrow and I have one or two questions about actually submitting the contract.
I’ll be using my own contract prepared by my attorney…should I prepare two originals, sign both and give both to the realtor, keeping a photocopy for myself? I presume that if the seller wants to make changes, he can do so, (i.e. a counteroffer) but any changes won’t be binding unless both he and I initial them. Correct? And should I also give the realtor an earnest money check made out to the title company I want to use?
What is the proper procedure? I’d rather not ask the realtor! Thanks!
No, I have not run into this. In fact, I make inspection with all utilities on at the expense of the seller a part of the contract, even if it is an ‘as is’ sale… otherwise it is the proverbial pig in a poke.
As to originals, I guess in FL we are either backwards, laidback, or the folks I deal with are. I have closed on a number of properties without ever having given the title company or the lender anything but a fax copy for the contract. It’s not that I’m so cool, it’s just to show how ‘unregulated’ and unstructured some of this stuff can be.
As to contracts: I use mine whenever I can; HUD, VA, REOs you know going in you’ll have to use theirs. FSBO’s I have little trouble with mine. Listed properties, it just depends on the agent, and I don’t fight it … just make sure the addendum is written by us and that is says what I want it to say, since it takes precedence over the printed contract in case of conflict.
Hope this is of help.
Carol
PS I also find that by acting a bit ignorant, not to say ‘dumb’ sometimes (no reference to hair color here), I can get a lot of help and cooperation from folks, and they generally are less wary and defensive.
Besides, I learn a lot that way - not all of it accurate!
$50 non-refundable inspection deposit… - Posted by Cathryn
Posted by Cathryn on January 14, 1999 at 05:41:28:
Something I forgot to mention…my lawyer now tells me that here in Texas, you are required to put up a non-refundable $50 deposit if you want the right to inspect a property while you have it under contract. In other words, you put it under contract, inspect it, say you’re not happy with it and cancel the contract. You get your earnest money back, but not this $50 fee. Any one else run into this?
Some realtors require you to use there contracts and they may save you some money for an attorney. You can add and cross out any thing you want. If you have a really good agent that is experienced and creative, you are on the right track. If you have a typical agent, remember to stay in controll and call the shots or else your realtor might get in the way. In negotiations you only need a copy for yourself, realtor, and seller. If you make changes it is less paper work to do. After all negotations are done, then you will need about 6 copies with original signatures. I have gotton away with only one copy with an original for the title company. You probably will make out a check to the realestate company for earnest money.
I think you have the right idea. The only thing I would add is to double check your offer to make certain that the disposition of the earnest money is covered…to include where it is to be deposited and when (I would suggest upon acceptance of the offer).
Re: $50 non-refundable inspection deposit… - Posted by Kristin
Posted by Kristin on January 14, 1999 at 09:57:58:
Cathryn,
The current TREC contract does allow for an inspection period, but there is no amount stated for this privilege. We use a $10 fee (non-refundable), and no one has ever complained. Also, the inspection deposit is NOT required if you’re taking the house as is. It’s simply a pre-printed weasel clause for those who choose to use it. (I always do.)
Hope this helps.
Kristin