All Posts Tagged With: "contract"
How Quickly Must I Apply For A Mortgage?
Many sale agreements require buyers to apply for a mortgage within a specific time period, say seven to ten calendar days after the contract is signed. This is a negotiable item, however, and can be any period agreeable to both parties. This is an important matter because if an application is not made, then a [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
What’s A Back-Up Offer?
A property is not actually “sold” until a sale closes and title passes to another party. For this reason sellers will often seek a “back-up” agreement in case the original offer falls through. A back-up agreement is a complete sales contract that includes all terms and conditions but it has no effect if the first [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Are Oral Offers Okay?
Sellers and brokers will want all offers in writing. Here’s why. Suppose a seller has a home for sale at $450,000. The buyer asks if the owner will accept $425,000. If the owner says “yes” he or she has lost $25,000 and the bargaining process has not begun in earnest. The buyer might then submit [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
What’s A Contract?
In general terms, a “contract” in real estate is a written agreement accepted by both buyer and seller. A proposed contract is an “offer” until accepted by both parties. If an offer is not accepted by both parties, it’s perhaps nothing more than a good idea. There are whole libraries devoted to the subject of [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Why Do Real Estate Brokers Have Escrow Accounts?
In terms of a real estate sales agreement, an “escrow” or trust account is typically an account operated by a real estate broker which is used to hold buyer deposits until closing. Example: Buyer Smith makes an offer to purchase a home. With the offer is a $10,000 deposit. That deposit is held by Broker [...]
29Aug2008 | Peter G. Miller | 0 comments | Continued
What Is A Right Of “First Refusal?”
A right of first refusal typically allows a buyer to purchase a home by matching another bid. For instance, if Green has a right of first refusal to purchase the Smith house, and Smith receives an offer of $100,000, then Green will be able to buy the property for $100,000. A right of first refusal [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
What’s A Land Contract?
A “land contract” or “contract for deed” or “agreement for sale” is an installment sale — you buy today but only get title after some or all of the payments are made. If you miss a payment, you could lose some or all your equity. Because title has not been transferred, there is nothing to [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
What Are The Pros & Cons Of A Land Contract?
A land contract may allow a buyer to obtain real estate even if he or she is not currently able to obtain financing through regular loan channels. A land contract may allow a seller to market a property when interest rates are high or markets are weak. If a buyer with limited financial capacity purchases [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
I need to move. How can I break my lease?
You cannot break a lease without consequences. After all, if tenants can break a lease then why can’t property owners? If you need to move but have time remaining on a lease, the best approach is to contact the owner or property manager, explain the situation, and offer to help find a new tenant. It [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
What is “specific performance?”
Real estate transactions are based on written agreements between buyers and sellers. Such agreements typically have a number of clauses to assure that each party obtains certain benefits — basically the seller wants cash and the buyer wants the property. Whatever the price and terms of the sale agreement, it is expected that both parties [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
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