Getting a House Under Contract?

Question

Hey guys,

Maybe this seems like a really basic question, but what are the steps to get a house under contract?

Right now I'm talking with sellers, I want to be ready when I do find a motivated seller. How do you get it under contract, do I have to bring a contract to them and have them sign it. Or do I have my lawyer write up the purchase agreement and send it to the seller. All this is assuming that the seller and I have talked and agreed on a price. Also, I here that a lot of sellers like to call on their attorneys to review the contract.

I'm just kind of unsure of how things are done. I'm in NY so I know its a market thats unique to others.

Moshe Dahari · Answer

Thats pretty much what I was doing Seth, just asking the same question over and over and till I got an answer that satisified me.

So I finally got a straight answer. It seems here in NY you do need the attorneys to contact each other and thats how it goes under contract. After I negotiate a price to purchase house I would ask seller for his attorneys contact details and pass it off to mine. Then they deal with it between them. Well guess that answers it for now... Hopefully this helps someone else here doing wholesaling in New York.

Seth Williams · Answer

In some states, a witness signature is required for each party in order for the contract to be "valid".

For example, the bottom of the contract would be laid out similar to this...

Buyer Signature:____________
Witness Signature:___________

Seller Signature:____________
Witness Signature:____________

Both Michigan and Florida require this (and probably several others that I just don't know off the top of my head). As J  Scott eluded to above, whenever these kinds of questions come up - just call a local title company or closing attorney and ask them what they think.

I remember when I was trying to get my first few deals done, I made a ton of random phone calls (to people who were a lot smarter than I was). I would send them blank copies of my purchase agreement template and just ask, "If I bring you a signed copy of this form, can you close with it?" If something was wrong, they'd just tell me what needed to change.

These kinds of Q&A calls are free, and can literally take you less than 2 minutes to get the information you're looking for.

Kyle Dee · Answer

Are there form contracts that you can get online that are already written up for putting a house under contract?

J Scott · Answer

Ned is absolutely correct for every state I'm familiar with, but I have some family in New York, and I remember the process being a little bit different.  There were required to be attorneys representing both parties, and some other weird stuff that I hadn't seen before.

Given that, you probably want to get some input from someone local in NY.  I could be wrong, but I think there may be some idiosyncrasies with real estate transactions in that state...

Moshe Dahari · Answer

Thanks Ned, I guess I figured that. I do believe I have a contract I'm comfortable with. Just need to figure out how to fill it out correctly :)

Ned Carey · Answer

Generally you bring (or email, fax etc.) a contract for the seller to sign. I can't remember a seller that had an attorney review the contract.

Obviously you should be ready with a contract that you are comfortable with / or have already had an attorney review.   Good luck - Ned