OfflineMy realtor is finally back to work and shes ready to put in offers for me. She gave me these two contracts to sign, but I never seen these contracts before( contracts are attached). I don't want to sign anything and then later get sued for it. I think her and a couple of her friends are starting their own real estate company because I typed her name in the Massachusetts association of realtors and her name didn't show up. Shouldn't all realtors license in Mass be listed on that site?
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File Attachments
Offer MA Mandatory Disclosure.pdf (448.29 KB)
Offer to Purchase - Rev2 - MA.pdf (112.21 KB)
I emailed the attorney Im working with but she haven't replied back to me, so I want to know if these contracts look familiar to y'all.
I cant wait until I get my first real estate deal, I feel like its taking me so long and I only strated in October. Once i get my first real estate deal though, im throwing a party because thats the day where I could finally call myself a real estate investor.
You need to have a attorney review your agreements so that you can understand them. What's your exit strategy? What are you going to do after you lock the property up?
Never sign anything you've never seen before without an attorney you can trust. The 1st is an "Agency Agreement." It means once you sign with this RE Agent, you can't work with any other RE agent in any way for any reason. Don't sign it. Never commit to someone until you know what they're worth. It applies in love - it ALWAYS applies in business.
The 2nd is a standard "boilerplate" RE purchase agreement. This is the contract they'll expect you to use when you try to buy a property through their agency. No point in signing this yet, you haven't looked at any properties yet. This is just a preview of what she'll expect you to jump through to get a house. You'll be changing this document to protect you as needed when the time comes.
Top 5 rules for ANY contract:
1) NEVER SIGN A BLANK CONTRACT. THIS IS LEGAL (AND ECONOMIC) SUICIDE.
2) If you don't understand it, don't agree to it.
3) Have an awesome attorney you trust who can answer any question you have.
4) Make sure you know everything before you sign anything.
5) A verbal agreement isn't worth the paper it's printed on.
Hope this helped. Good luck to you, man...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
Not all real estate agents are RealTORS. RealTOR (I capped it for emphasis) is a Trademarked term for an extra (but separate) association that RE agents can join if they wish for extra training and credentials. Any RealTOR on here can further explain the difference. Or you can read about it on Realtor.com. Good luck man...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
6) Always wait for your attorney's answer before your next move.
Consideration MUST BE AT LEAST ONE (1) US DOLLAR, or something worth at least that much.
7) Every agreement requires: a) An Offer, b) An Acceptance, and c) Consideration (this is your EMD).
9) Blue or Black ink are the ONLY 2 legally binding colors.
10) If a contract is written or signed in RED ink, it may be thrown out in court (depending on your state).
And #11!
11) If you hand the judge a "copy" of a contract when he wants the original, YOU WILL BE SCREAMED AT. (I saw that happen to someone - yikes!)
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
Rules 7 and 8 above only apply in RE purchase agreements. You don't need consideration for any non-RE related contract... Dee dee deeeee!
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
I was going to flip the property.
The 2nd is a standard "boilerplate" RE purchase agreement. This is the contract they'll expect you to use when you try to buy a property through their agency. No point in signing this yet, you haven't looked at any properties yet. This is just a preview of what she'll expect you to jump through to get a house. You'll be changing this document to protect you as needed when the time comes.
Good looking out I was wondering what those contracts mean. So if I sign the contract I could only work with that real estate agent in the state of Massachusetts or just in her agency/company
ooooh ok
Is that you or the realtor that you are going to be working with?
So far I didnt get any responses. These properties are MLS listed so I think after 48 days the written offer gets void. I think my offers were to low. I used comps and the regular MAO formula to make offers on the houses. These were multi family houses but nothing above 4 units so they weren't exactly commercial properties. My question is do I valuate a multi family house like a regular commercial property regardless of the units? If so my offers are way off.
Thats my realtor. I think shes starting her own real estate company called AA premier
She said she probably didnt get any offers accpeted because my offers were to low. These multi family houses were fully renovated, and some were fully rented. I took 67% LTV on the property.
As a former REALtor and now just a licensed real estate agent, and budding REI, understand that Realtor is a trade name obtained when licensed real estate agents pay to join a national & state association & a local Board of REALtors (emphasis is on the "real"). By joining the local board and state/national associations, the licensed agent agrees to abide by the code of ethics established by those mentioned organizations. It creates a fiduciary relationship beteween REALtor and their clients along with a level of liability on the REALtor's part. You can also work with a licensed agent who is not a part of those associations. You should know that person and get some references to know that they are of high moral and ethical standards and you would be fine. Good luck.
Thank you for the info. I thought something seemed fishy when I didnt see her name on the Massachusetts realtor site.