Where did you get your purchase agreement?

Question

Did you have an attorney review purchase agreement and add helpful content to it? Currently I only have one from a course I took. It was a really good and comprehensive course, but I want to make sure my purchase agreement is adequate.

Thanks everyone

Phil Christian · Answer

What type of product is this for? Multi-Family, Office, Industrial, Retail?

If it's multi-family you can use the CAR form.

If it's office, Industrial, Retail use AIR forms.

Max Gradowitz · Answer

I would suggest finding a real estate attorney that is familiar with drafting custom purchase agreements.  They can draft one up for you entirely.  Or, as you mentioned, if you already have one that you'd like to use, you can ask an attorney to do "doc review" for you.  I do this all the time for investors trying to save money by using their own purchase agreements for off market transactions, and it saves a lot of money because the attorney will simply review it and recommend any changes for a very small fee.

Truth be told, I've noticed that escrow companies prefer the standard CAR form that Realtors use, and I've had troubles with escrow companies trying to interpret custom purchase agreements in the past.  So choose your escrow company wisely if you go with the custom purchase agreement.  I've noticed that it's usually best to find a real estate attorney who can modify the CAR purchase agreement to fit your needs for a small fee.  That way you get the same service done for likely the same low price (much less than a Realtor commission would be), with the additional benefit that everything is easy on the escrow company.

Taylor Hazard · Answer

Does your state produced a standard template form? Colorado for example has standard state approved forms that 95% of transaction use.

In WA we have CBA (Commercial Brokers Association) which produces leases, PSAs etc. and most people use/accept their docs.

Check with with the department of licensing for CA or local trade groups.

Max Gradowitz · Answer

The standard forms are used for commercial and residential properties.  The CAR commercial purchase agreement is a little different than the CAR residential ones, but in either case you can use the CAR forms.

Alex Tobias · Answer

@Taylor Hazard

I’m open to buying in most states. I’m not sure which states typically use standard forms. I wasn't even aware of the standard form, but that makes sense. Thanks for the info! I’m mainly interested in commercial btw. I’ll look into that!

Thanks @Max Gradowitz for the advice. What you said makes sense. Do you know if standard CAR forms are used for commercial property too? If it matters, more specifically mobile home parks.

@Phil Christian For Mobile home parks. So a commercial CAR form?

Where did you get your purchase agreement?

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