Contract Purchase Agreement
I am new to the forums and learning alot. I am trying to see if anyone ahs an idea of where to get a good contract or purchase agreement that is set up for protecting me the buyer. I have looked at our state one, and it is not all that great. I am thinking about an Attorney, but I am not sure. Anyone who has some feedback or can point me in the right direction it would be greatly appreciated.
Thanks
Might I suggest the following if you plan on buying properties: 1. Find a Buyer's agent/broker in your area that you feel comfortable working with. 2. Have them provide you with blank copies of the Purchase and Sale (P&S) agreements that they would use for a purchase. 3. Have them go over the paragraphs you don't understand. As a Buyer's agent/broker he/she owes a responsability to you, and only you in the transaction. They cannot say "he'll go to $125K if you don't agree to the $122K offer." Remember the RE agents are selling their services. Best of Luck..
cjmazur
you are providing dangerous advice to the poster. That guy can get royally screwed if he goes for a standard Purchase and sales agreement from Stationary stores and gets nailed on a contingency which could have been easily drafted in the agreement.
Do as Todd_Re_investor suggests and go for a professional. Remember this a 100 bucks paid for a competent attorney can save you a $100000. Besides you will be going to an attorney for that only when you have your deal lined up and you want to cover yourself up. So its money well spent
Best Wishes
thanks for your inputs. I will take the advice and get an attorney to draw up Purchase contract docs. It is worth to pay a couple hundred now than to get burned on the back end.
thanks for your inputs. I will take the advice and get an attorney to draw up Purchase contract docs. It is worth to pay a couple hundred now than to get burned on the back end.
Check out www.totalrealestatesolutions.com for contracts!
The problem you can get into is if you have your lawyer draw up a heavily buyer protected purchase agreement, the seller is more than likely going to have his attorney review it (because it isn't the states usual agreement) and your going to get a pissed off seller that doesn't want to deal with you because you can wiggle out of the agreement all over the place...or, they'll say "no I want it to read like this" and then you are going to go back to your lawyer and have him review the changes, and back and forth and back and forth. Its not worth it. The Bar Assocation for your state likely has a purchase agreement your attorney can give you for next to nothing that protects both the buyer and the seller and offers an area for "other provisions" where you can some buyer protection clauses (from your lawyer that aren't too crazy)
The seller is always going to say "why does this guy want all these options to back out" and the negotiated purchase price will likely reflect that. I've reviewed purchase agreements for many multi-million dollar commercial sales, these guys use agreements that are fair to both parties. Your more than likely going to come off as trying to screw somebody over.
You can get any sort of contract you want.
Remember that the objective is not to have the best contract but to get a good deal. Hence I would not create something too complex or too bias towards the buyer if you want a seller to accept it without a lot of changes.
Start with some example contracts and try to decide what you are trying to achieve. If you do not know what would be good or bad, get some books, speak with a buyer's broker and pay a lawyer to educate you.
No one contract will be best in all cases. Expect that you want a template and then a number of clauses that you add in when the situation makes sense.
John
[addsig]
Thanks for all the advice. My intention was not to burn people. I was thinking the better the contract the better the possibilities.
I am glad you opened up my eyes to that. I will look into this further.
The reason I don't want to use the Contract issued by the Realtors, is that most of them have a non-assignable clause.
Any other suggestions or comments would be helpful.
Again thank you
I never meant for the Poster to use an attorney. A licensed RE agent should be able to provide all of the services for the puchase and sale of RE. Any GOOD agent should be able to have an assignable clause included in the P&S agreement. This can be included in an addendum - which can drafted as you see fit. Our addendums in WA state are blank forms that can have anything related to RE transaction written on them. E.g. the two rose plants with red ribbons go with the seller, or Buyer and Seller agree that this transaction can be assignable to a new purchaser after the mutually agreed to date, but before the closing date. The contracts RE agents write forces them to be knowledgeable to the same standard as Attorneys. This is why ABA allows RE agents to create contracts, using each states approved RE forms. They can be sueable as are attorneys too.