purchase agreement

You can basically use any bland purchase agreement like the ones on the left toolbar. You pretty much want to add in your escape clauses based on the type of property, financing arrangement, etc that you are going to be pursuing.

If you feel better about having one from your area, you can always run by a realtor and ask for a blank purchase agreement. Most of the time, they will be willing to print you one up. You may have to chit chat with them a bit, but it'll give you a leg up and possibly some leads on to some other properties..

I am getting ready to do my first purchase agreement (yey me!) and I have NO IDEA what I am doing. I printed out the purchase agreement in the docs and added the contingents that Sully recommended.

On the form....

pg 2... buyer agrees to buy property yada yada yada then personal note which is my deposit of $100.00 I guess. Then it asked for down payment info ??? I am going to hopefully assign the property what should I put here?

pg3 coveyance and closing within ?? days. Then a few more within this paragraph. What do I put on these lines.

I want to make sure I have this right before I sit in front of the seller and fill it out. Do I give the seller a copy of this agreement?

Maybe yours truely can offer some assisstance(me), lol, o.k. enough of that already, 1) DEPOSIT: you should be recieving the DEPOSIT from your END BUYER, I would ask for $1,000 that will usually seperate the "MEN from the boys" if you catch my drift,2) As for your closing date, i would buy yourself as much time as possible, like a closing for 60 days, If your seller balks @ that then try 45 days, that is if you and the seller DIDN'T already discuss the closing date.

Also, do you have access to your state-approved purchase agreement/offer to purchase (you can get one from a realtor, office-supply store, or on-line)? It might be a good idea to look over both with someone in person. Have you worked at all with a realtor or attorney from your area that could help you fill it out for your first time? I'm not saying you can't do it yourself, but it might help you feel a little more confident. Anita has posted one that is already filled in, but I know that it is very different than the one used in my state, as it may be for New Jersey. It might help to look at it, though.
http://www.deangraziosi.com/node/5374

Congrats on moving forward, Carol. Exciting, isn't it?

Rina

checked out the "offical realtors contract" that ant posted, and i cant believe how much different it is then ours(pennsylvania), cause i have multiple copys of different purchase & sale agreements, including the "offical realtors contract" it's crazy, that it varys that much from cali's, good point Rina....you've done this before haven't you?, lol

More than a few times, Sully.
One time a few years ago, I purchased a house that a friend had inherited from her dad, and I was so excited about the deal that I used the first generic purchase agreement I found on-line. Well, that was all fine and dandy as far as she and I knew, but when it came to closing, the title company noticed that the one we signed said the BUYER was responsible for the title transfer fee (and title insurance, if I remember right)when in fact in Wisconsin it is typically the seller's responsibility, as is the title insurance cost. Anyway, we then agreed to split it two ways instead (generous on her part, being I had signed it that way). Just goes to show, "you don't know what you don't know".
It pays to use due diligence.
Of course, the contract from the site is very well-worded for an investor to use, but having someone help fill it out wouldn't be a bad idea.

God bless,

Rina

does the purchase agreement have to go along with a assignment of contract?

Here is the way I do my selling as instructed by my funding source and title company.

First....I find the house I want to buy.
Second....I use the contract my title company provided (created by their attorneys).
Third...When I sign the contract between me and the (original)seller I add the contingencies (escape clauses)giving myself as many days as possible to find the end buyer.
Fourth....I search and find my end buyer.
Fifth...I then bring out that SAME contract I signed with the original seller and use it again between me and the end buyer. (No assignment of contract needed)
Sixth...the funding guy buys the house in my name...I sell it to the end buyer... all done on the same day. (simetaneous closing)

This way it looks like I am the seller and he is the end buyer and he will never know what I make on the deal.
Everyone gets their money distributed by the title comapny and the end buyer gets his house.

The best thing is that the end buyer has no clue as to what I make on the house.

The purchase agreement should already be at the title company when you open escrow. So the assignment contract is signed by both you and the buyer, then sent over to the title company as well. So you don't need to go along with the assignment contract. So the answer is 'no'. But you need both for the transaction.

Thanks so much for the info. i was not aware that i needed to have the offer to purchase at the title company. i was also not aware that i needed both.
thanks again. L.P.

Any and all agreements involving the sale need to be given to the Escrow Co. This paperwork is where the Escrow Agent gets their instructions on how to handle the transaction.

Al

Al's right, they keep everything regarding any real estate transaction, the purchase agreement, any addendums, the assignment contract, the appraisal, the termite report. Whatever goes in the deal they get, so everyone knows what's been done and they keep things running smoothly. If there's any problems they let you know so you can get the necessary paperwork. The title company is a big key to a successful transaction! Glad this helped you!

Elena you said "The purchase agreement should already be at the title company when you open escrow." I am confused again:? Please explain...

Al you said "Any and all agreements involving the sale need to be given to the Escrow Co. This paperwork is where the Escrow Agent gets their instructions on how to handle the transaction." yes I am confuse yet again:? Please explain.

I am getting ready to get purchase agreements signed on 2 properties. What do I do next? How do I open escrow? Why do I have to open escrow? I already have buyers to assign. Do I have to wait for this process to be completed before I get assignment contracts signed? Ahhhhhhhhh I am going back to the "scared to death" forum now.

No, I'm sorry if you misunderstood what I was saying. You take the sign contracts to the title company and open escrow with them. That's it they assign you an escrow number right then and there, no long wait. Then you submit the assignment contract when you get that signed and turn it in to the title company. I hope this clarifies, but if not let me know.

Elena, thanks for your response. I am still a little confused...

"You take the sign contracts to the title company and open escrow with them." Can I use any title co. and why do I open escrow with the contracts.? Please explain this process.

Do they hold the contracts until you find a buyer? Then once you find a buyer you take the assignment contracts to the title co. and then what?

Also, Do I give the seller and the buyer a copy of the signed contracts?

Thank you for your help Elena, I would not have made it this far without your guidance! Oh and I can't forget Sully and Rina too. Thanks guys!

You should use a title company that you know will accomodate what you want to do. Ask other investors who they use. If not you can always transfer the paperwork to another title company, I did that so it' no big deal. You open escrow with the title company, just like buying your own home. (Usually the Realtor handles that) So, you wait til you find the end buyer, then you take the assignment contract to the title company and wait for your check. If anything comes up the title company will call you. That's pretty much it, so don't panic. We're here if you need us!

Do I give seller and buyer a copy of contracts?

When I contact a title co. what do I tell them I want to do? Open escrow with a purchase agreement??

This is all news to me. This process is not in Dean's Book or anywhere else regarding assignments. This is yet another one of those secret steps that I would have left out if it was not mentioned here. What else do I not know? I am steps away from an assignment and I feel like I am still missing so much info. I wish I had a step by step diagram for assignment. One that included all the major steps like this one. Any more contracts or filings I need to know about?

All parties who sign need to get a copy. You will also have a check or cash (earnest money) that is given to the title company. Any addendums (changes or additions to the contract) go to the title company. Any bills that will be paid at the COE (Close Of Escrow), also go to the title company. All documents from the lender (if there is one) go to the title company. If there is any amount of money that you need to close the deal, that will need to go to the title company also. The Escrow Agent (title company), using the instructions on the contract, will go thru the paperwork, issue a title insurance policy, pay off old mortgage (if there is one), pay all necessary bills, pay the assignment fee (if there is one, and it is legal in your state), pay seller, and file deed with county recorder. Once the deed is filed, the property is sold.

Al

Thank you for putting in all those details! Carol is right. There's so much a person doesn't know that they don't know. That's like anything, though, Carol. It's all a learning process. Even if you were told EVERY step, believe me, there are weird, out-of-the-ordinary things that can happen in transactions. There have only been a few in my experience that go smoothly, exactly by-the-book. BUT the more knowledge you have up front, the better.

A couple of things to add: The title companies here never heard the term "opening escrow", although that is essentially what they do. So maybe the terminology is different in different areas?

Al, as far as your last sentence "Once the deed is filed, the property is sold.", I would say that once you have closed at the title company, you can breath your sigh of relief, the deal is done. It may take a little while for the docs to be filed at the courthouse, but that doesn't mean it is still open. Would you agree?

Rina

Rina, In Arizona the deal is not sealed until filing. That is how you would prove ownership. We do not exchange keys (in most cases) until filing is done. Realistly, once the papers are signed by both parties, the sale is done.

Al

Here everything is done the day of closing. Handshake, key exchange, etc.
So I guess it's important to know the "laws of the land" in your state.
Thanks, Al.

Rina

P.S. Typically, how long does filing take in AZ? It can take quite awhile here. (slo-o-owwwwww courthouse, as you've probably read in some of my posts. lol)

In almost all cases, the paperwork is filed the same day as the closing (signing). Sometimes it is not until the next morning, depending on the time of day that the closing happens.

Al

This may be obvious for some, but it was a learning experience for me.
In researching a title company to use for my assignment of contracts,
I've learned that a lawyer can be that "Title Company", and I am currently sending a lawyer I'm working with a copy of my 'assignment-of-contract' (from the DG site) and a copy of my 'Purchase-and-Sales' agreement, with all my contingencies filled in - I used a copy of the official state realtors purchase and sales agreement.

So I learned that a RE Lawyer can in fact be the Title Company.
And also, here are the contingencies that I have put together.
(I know if read this post, that is THE question I would be asking! )
* The Purchase is Contingent on the Buyer Obtaining Financing Suitable to the Buyer.
* Offer is Contingent Upon Suitable Home Inspection.
* The Purchase is Contingent on the Approval of my Business Partner.
* This Contract May be Assigned by the Buyer to a Third Party of His Choice.

Back to work,
go find deals!
~B

I know that some states use lawyers to close RE transactions. Do they still need to contact a Title Co to get Title Insurance?

Just wondering, Al

VERY important!

Depends on the area where you live. Here in a small town in Louisiana, i use an attorey to do all my closing and he does all the title search for me. I know in a big cities, most of the transaction are taking place with a titile company which designated only for that purpose, but in a small town like this, an attorney handles everything like title search, closing and filing.

Lloyd

Do you get Title Insurance on the property?

Yes Al, even Title Insurance!

Lolo

Thanks to all above for their imput and sharing. This clarifies a lot in my mind. Just tonight I was looking at two different purchasing contracts, and feeling like Carol. I have taken notes from above, and will be looking to do my own assignment. Thanks again to all above. Pas. Greg

Was this a purchase or a sell of contract agreement? I like the way you did this, just wandering?