OfflineHello Everyone,
What is the difference between the "Agreement to Purchase" and the "Purchase & Sale Agreement", and how are these forms used different from one another in the sale of a property? They aren't the same contract, as one is more extensive than the other and with added/different wording. I hear people say to use the "Purchase & Sale Agreement" to lock up properties. Then what would the purpose of the "Agreement to Purchase" be in doing deals? Similar, but different questions. I've looked all over the forum searches for an answer to this, and I don't see where the question ever came forward. I know other people who have the same question.
Thank you for everyone who answers and helps on this.
Jason
Jason Richardson
Bremen, IN
"Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed...every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn't matter whether you are a lion or a gazelle...when the sun comes up, you'd better be running." ~ The Essence of Survival
"If you would attain to what you are not yet, you must always be displeased by what you are. For where you are pleased with yourself, there you have remained. Keep adding, keep walking, keep advancing." ~ St. Augustine, Bishop of Hippo in North Africa, 4th Century
"And we know that in all things God works for the good of those who love Him, who have been called according to His purpose." ~ Romans 8:28 (NIV)
I am not really sure of the difference between these two documents, but what I did, was I brought both to a local RE attorney and had him look them over. He gave me a state approved Purchase Agreement, which was almost exactly like the agreement to purchase from Dean, just the layout was different and it had sections for the realtor/broker to sign their name. I would go with the more extensive one, but still bring it to an experienced RE attorney and ask him/her to make sure that the contract complies with state law, is worded properly, and includes all the necessary protective clauses. You can always get a second opinion from other attorneys as well.
Hope this helps.
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee
Without seeing them its hard to know. Not all Purchase contracts are spelled out the same. Different states need different contracts also. We spent a little bit of money and had our attorney draw up contracts specifically for wholesaling that gave us absolute security as far as exit clauses go. We never used a realtors contract, we made them use ours so that we could bail if necessary.
There's probably a thread on here for those contract definitions. Maybe...
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
javadragon is talking about Dean's contracts under the Forms and Docs tab on the left.
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee
Sorry, forgot to mention these forms I'm talking about are on the DG website in the "Forms and Contracts" page (link on left-lower side of main page). I am looking to work with a local RE Attorney, but is not in the finances to do so just yet. Looking to possibly lock up six properties, three on one and three on the other, for two different investors trying to offload properties in a bulk sale. Not sure how to do this with the contracts...one property per agreement, or can one form be used for multiple?
Jason Richardson
Bremen, IN
"Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed...every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn't matter whether you are a lion or a gazelle...when the sun comes up, you'd better be running." ~ The Essence of Survival
"If you would attain to what you are not yet, you must always be displeased by what you are. For where you are pleased with yourself, there you have remained. Keep adding, keep walking, keep advancing." ~ St. Augustine, Bishop of Hippo in North Africa, 4th Century
"And we know that in all things God works for the good of those who love Him, who have been called according to His purpose." ~ Romans 8:28 (NIV)
I been having trouble understanding what documents to use on a real estate deal and how to fill the documents out can anyone help me out its getting frustrating for me. Your Help will be greatly appreciated thanks
thats why i thought to help everyone with this they could have video on contracts and filling them out it would be great.lol rich
There's probably a thread on here for those contract definitions. Maybe...
Good evening Shelia. Do you mind posting your wholesale agreement so we can see how it looks?
When we bought more than one property from the same seller we used a seperate contract for each parcel. Our contract is Illinois specific. I'll try to post it for you when I get time around the pc. Been busy but I want to help out anyway that I can.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
I just wanted to make mention that there is a lot of different contract and a lot of contracts with different names. Most are the exact same other then a different attorney wanted to make changes.
To keep it simple I always use the state approved form and focus on content. contingencies are key.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
"Agreement to Purchase" is normally used to make the OFFER
"Purchase and Sale" is used after offer is accepted
Mike
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