Resources to understand Contract to Buy & Closing Documents

8 Replies

Thanks for reading! I'm looking for specific educational resources on step by step completing an offer (Colorado Contract to Buy Residential).  I'd like to know how to do this with transactions using owner financing.  I'm not a licensed agent, so I always use an agent or attorney, but I would still like to know these things inside and out in order to write them with confidence.  Does anyone have resources to recommend?  I'm interested in the same for the closing documents (understanding them- I do not feel the need to be able to write them).  Basically I want to understand the whole purchase transaction inside and out start to finish.  Sounds like an obvious question to me, so I'm great with obvious answers.  I've read the top 40ish real estate books I've been able to find, so I'm looking for something more nuts & bolts specific.   Thanks for any help. -Grant

@Grant Shipman

Honestly, the best way to understand these documents well (and to learn it in a shorter time-frame) is to have *an experienced* agent walk you through them, line by line. If you are using an agent to help you buy properties, they should be more than willing to do so. I would recommend doing this before making an offer so there is no time pressure. Doing this will also help you to be more confident with your Realtors (or help you to see you may want to use another one if they can't explain this crucial document). 

For the closing docs a good agent should be able to help there, but I might actually recommend going directly to a title company and asking if you can have a title rep or closer walk you through the closing docs.

@Grant Shipman agents are only allowed by law to fill in the blanks (Conway-Bogue Decision) Seller financing terms must be handled by an attorney or anyone else for that matter, just not an agent. I agree with @Phillip Bicker whomever you're using as an agent should be willing to help you. An attorney at minimum will prepare a deed of trust and promissory note to be included with the contract, see Section 4.7 for the language of Seller Financing. 

@Phillip Bicker and @Rick Thomas

Thanks for the responses!  I have a great agent and title rep too- I guess sometimes I need people to point out the obvious :) Utilize my team!  Thanks again y'all!

Originally posted by @Rick Thomas :

@Grant Shipman agents are only allowed by law to fill in the blanks (Conway-Bogue Decision) 

I'm fairly certain that anyone can fill out a DORA contract. The CB Decision allows "agents" to fill in the blanks without an attorney. 

 If you want to learn the contracts, go to a contacts class put on by a title company. 

@Matt M. Whenever we meet, I need to buy you a drink.  Thanks for your reply! I'm contacting my title rep now to ask about classes. 

Originally posted by @Grant Shipman :

@Matt M. Whenever we meet, I need to buy you a drink.  Thanks for your reply! I'm contacting my title rep now to ask about classes. 

 Call Tina Bonham at First Integrity. She's really good and can set you up for their classes, etc. First Alliance has great classes too!

@Grant Shipman A bit late to the party here but a few years ago, the owner carry section was modified on the standard form contract (I think in part due to Dodd Frank) and the terms of financing for owner financing were removed. You will need to add those into the additional provisions part of the contract. It would probably be a good idea to have some standard language to use that was drafted by an attorney. You might find an older version of the contract on-line so you could see how it used to be done.

Would the correct DORA form for owner carry be the "Promissory Note for Deed of Trust"?
If so, what is the difference of the UCCC default terms for the two different form options?

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