Contract Check List

CONTRACT CHECK LIST

PARTIES: This is the seller and the buyer. Put and/or assigns behind buyer's name when working with private sellers. You can’t use with institutions like a bank or HUD.

DISCRIPTION: All contracts ask for the legal description as well as the street address. In most cases you don't know the legal description, so just use the street address.

PERSONAL PROPERTY: This is anything that is not screwed or nailed to the property. However, when in doubt list it. Also, just because something is in the listing doesn’t mean that it goes. The listing isn’t a contract with you.

PURCHASE PRICE: This is the full price that you are offering.

FINANCING: This is where you describe how to pay the purchase price. For instance, a 90% first mortgage and 10% down, or a contract where you include a first mortgage and a purchase money mortgage.

EARNEST MONEY DEPOSIT: Only make out the deposit check to the escrow, title or real estate attorney, not to the realtor or the property owner. (Not Negotiable)

ACCEPTANCE DATE AND TIME: Whenever possible, use 24 hours. REO’s more like two weeks. HUD within 48 hrs.

TITLE INSURANCE: Guarantees clear title. (Open Title) Never buy a house without it.

CLOSING DATE: With a new loan it will be 30 to 45 days. With a contract/cash, it can be one to two weeks. Just make sure that you do a title search and inspect the property.

PRORATIONS: Make sure that all taxes and insurance are pro-rated so that you only pay for the time you are in the home. Also, if it is rental property, be sure and get the rents prorated and deposits transferred. Ask for impound account to be included in price.

CLOSING COST: Traditionally they are split with the buyer and the seller. However, it’s always up for negotiation.

POSSESSION: This is another item that’s up for negotiation. It could be at the COE or COE + 2 or 3 days to let the seller vacate.

THE CONTRACT: Anything that is hand written or type written supercedes the printed contract.

SUBJECT TO’S/SAFTEY CLAUSE: This information is usually on the addendum and is where you provide protection with exit plans/escape clauses for yourself. (Contingent upon)

This contract is subject to buyer satisfactory inspection of the property within 72 hrs. of acceptance. This is in addition to the 10 day inspection clause provided in this contract.