What should a contract say when buying a house from a private owner with cash
2007-02-11 02:33:04 · 6 answers · asked by Timothy W 1 in Business & Finance ➔ Renting & Real Estate
Do yourself a favour, get a Real Estate lawyer to assist you in the drafting of a purchase contract if you do not want to use a REALTOR.
I would suggest paying a REALTOR a representation fee and having them assist you because they will know the area and what things to look for and what other professionals to help (home inspectors, water analysis - if there is a well, septic inspection - if there is a septic tank).
A lawyer will draft up a contract with conditions that protect you in the process. Most important - a professional REALTOR or Lawyer knows how to draft a legally binding contract that will protect you if something unexpected occurs.
You will never know the importance of using a professional unless something goes wonky - then you'll be happy you did!
Good luck...
2007-02-11 14:47:01 · answer #1 · answered by glen s 3 · 0⤊ 0⤋
You know if you know several things about what you want to do and how you want to go about them, the parchment you write it down on does not really matter except there are lines for specific information.
The intent of this document is to see if you are on the same page and idea about what is suppose to happen in this transaction,not if it is written on a certain piece of paper and in a certain order. So if for some reason you have to go to court a third party will be able to interpret the main idea and if there was in fact a meeting of the minds. That is all a contract is nothing more and nothing Else.
If you know how much you want to pay for the house that is called the sales price. If you are gonna pay all cash that is another line buyer will pay all cash for the house.
Now you need to put on this piece of paper we would like to close this transaction on or about a future date normally 20-30 days.
Now the next most important thing is the date you both signed this agreement, so place it at the top of the page. Now who are the people that are gonna sign this document, place their names at the bottom of the page and another date that they signed this document.
Now you need to find a escrow closing agent in your city, some states use attorneys as escrow closing agents so god forbid if you are in one of those states take this contract to them.
They will take this contract and issue escrow instructions stating about the same thing. There might be other questions, but the basic things are there. Once the escrow closing agent has the contract they will contact a title company to insure that the property is in a postion to be sold and if any mortgages or leins are on the property that should be paid off so as to convey a clear title to the new buyer.
If there are mortgages and leins the escrow closing agent will send a letter requesting the payoff amounts.
With that being done these professsionals will now guide you through to the very end of the transaction.
You don't need an attorney to draw up a contract.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-02-11 07:31:42 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
As a Realtor and law student I must say do not use a office store contract, it is a waste of money, and will not hold up in court, those contracts are written once and sent to every state's stores. Laws reflecting contracts and especially real estate are state laws and completely different in each state. Your best bet is to look up and contact your local real estate board or your state real estate board they should be able to provide you with a state written real estate contract. But your best bet since I am assuming you will still be using a title compnay to close the transaction, provide a deed, and a title insurance policy to safeguard you is to ask them for a contract all good title companies can provide you this service for free since you are already using them. Ask the seller if he has a a closing title company in mind and if not mutually find one and ask them to provide or prepare a contract. You both will be well protested and it will be a legal contract to your states specs.
2007-02-11 05:28:45 · answer #3 · answered by Jeff T 2 · 0⤊ 0⤋
ask a local lawyer or Realtor for a copy of your states purchase and sales agreement. I would not use a generic store bought contract
2007-02-11 06:21:55 · answer #4 · answered by frankie b 5 · 0⤊ 0⤋
you can go to a staples or any stationary store and you can buy legal binding documents for all sorts of things even buying a house or divorce
don't go about writing your own... at least ask an attorney.. it costs about $250.00 cheap ..when you think it will protect you
2007-02-11 02:37:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I wouldn't do that without a professional. Get a real estate attorney to help you. Expensive mistakes can occur.
2007-02-11 02:47:15 · answer #6 · answered by Nancy O 3 · 0⤊ 0⤋