is it worth having a lawyer look over my contracts?

6 Replies

i got the "purchase and sale contract " and the " agreement to assign" from the BP website.

are there any extra clauses i should add?


CONTRACT FOR THE PURCHASE & SALE OF


REAL ESTATE



Date: On this day of, 2013


PARTIES: This agreement is made between Seller(s): ___________________________________________________ and Buyer(s): _______________________________________________ and or assigns, as Buyer. Seller agrees to sell and buyer agrees to purchase subject property listed below.



WITNESSETH: That Seller, in consideration of the payments, covenants, agreements and conditions herein contained which on the part of the Buyer are to be made, done and performed, has this day sold, upon the conditions hereinafter recited, to the Buyer the real property legally described as:



SUBJECT PROPERTY: ________________________________________________________, hereinafter the property.


LEGAL DESCRIPTION: _______________________________________________________________________


_________________________________________________________________________________________________



SALE PRICE: $________________________



SUBJECT TO: _________________________________________________ $________________________



EQUITY: $________________________


PAYABLE: THIS IS AN ALL CASH TRANSACTION. PURCHASE PRICE IS NET.



EXISTING MORTGAGE (S): Existing financing on subject property will be current in all payments of principal, interest, late charges and escrow amounts required by the mortgagee. Escrow balance has been calculated into the price and will transfer to the Buyer along with title. Buyer will take title subject to his debt.



EXPENSES: BUYER PAYS ALL CLOSING COSTS.



INSURANCE: As consideration for this purchase the Seller will assign all insurance policies on the property to the Buyer and Seller will grant a limited power of attorney to the Buyer to deal with the lender(s) and insurance provider(s).



RISK OF LOSS: If subject property is damaged prior to transfer of title, Buyer has the option of accepting any insurance proceeds with title to the property in “as is” condition or of canceling this contract and accepting the return of the deposit.



PRORATIONS: Real property taxes will be prorated based on the current year’s tax without allowance for discounts, including homestead or other exemptions. Rents will be current and be prorated as of the date title transfers.



FINANCING: This purchase is subject to the Buyer and Buyers’ Partner ability to secure the necessary financing.



DEFECTS: Seller warrants subject property to be free from hazardous substances and from violation of any zoning, environmental, building, health or other governmental codes or ordinances. Seller further warrants that there is no material or other known defects or facts regarding this property, which would adversely affect the value of said property.



ASSIGNABLE CONTRACT: BUYER MAY ASSIGN CONTRACT IF FINANCING CANNOT BE SECURED.



NO JUDGMENTS: Seller warrants that there are no judgments threatening the equity in subject property, and that there is no bankruptcy pending or contemplated by any titleholder. Seller will not further encumber the property and an affidavit may be recorded at Buyer’s expense putting the public on notice that the closing of this contract will extinguish liens and encumbrances hereafter recorded.



RADON GAS & LEAD PAINT: Lead based paint and Radon, a naturally occurring radioactive gas that may present health risks to persons who are exposed to it over time, may exist in this property. Buyer may obtain a risk assessment of “the property” by licensed inspectors. Dangerous circumstances and the conditions, which caused said circumstances would be corrected at the Seller’s expense before title transfers.



LICENSURE: The trustee of the above-mentioned Buyer’s Trust may or may not hold an inactive real estate license.



POSSESSION: Possession of the property and occupancy (tenants excepted), with all keys and garage door openers, will be delivered to the Buyer when title transfers. Leases and security deposit will transfer to the Buyer with title.



INSPECTIONS: This contract is contingent upon the Buyer’s and Buyers’ Partner inspection and approval of the property prior to transfer of title. Seller agrees to provide access to the Buyer’s representatives prior to transfer of title for inspection, repairs and to market the property. Inspection must pass Buyer and Buyers’ Partners Inspection Process.



ACCEPTANCE: This instrument will become a binding contract when accepted by the Seller and signed by both Buyer and Seller. If it is not accepted and signed by the Seller prior to _________________, this contract shall be void.



DEPOSIT: Upon acceptance Buyer will place in escrow an earnest money deposit of $ ____________ with title company which will be part of the cash paid to the Seller when title transfers. This deposit will be returned to the Buyer if title does not transfer in accordance with this agreement and said Title Company will close this transaction.



CLOSING: Closing will take place on or before: _____________ at ______________________________________or TBD, Subject to a 45-day period in which the buyer/seller shall be permitted to do necessary due diligence and to clear any title problems.



OTHER AGREEMENTS: Seller agrees to provide (1) set of keys and allows 24hr access to the property for inspecting subject property and to perform proper due diligence until sale is completed if available. THIS IS A CASH TRANSACTION. BUYER PAYS ALL CLOSING COSTS. PURCHASE PRICE IS NET.



TIME IS OF THE ESSENCE WITH THIS AGREEMENT. EACH CONTINGENCY CONTAINED HEREIN SHALL BE SATISFIED ACCORDING TO ITS TERMS BY THE CLOSING DATE OR THIS CONTRACT EXTENDS TO PROVIDE TIME FOR SATISFACTION OF SAID CONTINGENCIES. EACH PARTY SHALL DILIGENTLY PURSUE THE COMPLETION OF THIS TRANSACTION. EACH WARRANTY HEREIN MADE SURVIVES THE CLOSING OF THIS TRANSACTION.



PROHIBITION: This agreement establishes a prohibition against transfer, conveyance or encumbrance to the property.





____________________________ _______ _____________________________ ______


Seller Date Buyer Date



_______________________________ ________ _________________________________ _______


Seller Date Buyer Date




Agreement to Assign
Contract for Sale and Purchase

This agreement is made between ____________________________________ (ASSIGNOR) and ________________________________ (ASSIGNEE) regarding purchase of the referenced SUBJECT PROPERTY below.
Subject Property: ____________________________________________________________
Legal Description: ____________________________________________________________
Whereas ____________________________________ (BUYER) has entered into a Purchase and Sales Agreement with ____________________________________ (SELLER) for the purchase of SUBJECT PROPERTY, and whereas BUYER wishes to assign its rights, interests and obligations in the Purchase and Sales Agreement, it is hereby agreed between ASSIGNOR and ASSIGNEE as follows:
Buyer/Assignor hereby assigns all rights excluding all earnest money deposits to said contract for sale and purchase to_____________________________ (Assignee) in exchange for compensation in the amount of ________________________ dollars ($ ) to be paid at closing.

1. Buyer/Assignor will collected a Non-refundable deposit directed towards the assignment fee of (20% or agreed $_____________) with the balance of $______________ due at closing.
2. ASSIGNEE accepts all terms and conditions of the contract for Sale and Purchase between BUYER and SELLER in its entirety.
3. ASSIGNEE acknowledges receipt of legible copies of the original Contract for Sale and Purchase in its entirety including all Addendum(s) associated with this transaction.
4. Additional terms and conditions of this Assignment are as follows:
A) This assignment contract is non-assignable without the express written consent of the ASSIGNOR. No changes to the Purchase Contract can be made without written Consent of BUYER.
B) Disclosures and Acknowledgement: Seller sells property as-is with no warranty of property conditions. Assignor makes no representation to buyer, or his agents, as to the condition of the subject property. ASSIGNEE acknowledges and agrees that he or she is purchasing the property on an “as-is” basis and based on his or her own inspection, investigation, and evaluation thereof. ASSIGNEE is not relying upon any representations of ASSIGNOR, SELLER or SELLER’S agent(s) to investigate and report on the condition of the property.
C) ASSIGNOR, SELLER do not warrant that the property meets any current City, County, State or Federal building codes, as well as the presence of any and all outstanding or pending violations against the property. ASSIGNEE assumes all responsibility to perform any inspection, investigation, and evaluation thereof, prior to the signing of this Agreement.
AGREED AND ACCEPTED
______________________________ __________ ______________________________ __________
Assignee Date Assignor Date
______________________________ ______________________________
Print Name Print Name

sorry, i didnt mean to put this in the rehab forum...................

and i dont want to spend $250 on a lawyer.... i have a property almost under contract but i dont want to get myself into something too deep where i cant get back. i dont know legalities

@Account Closed  

From one Derek to another, I personally would want a lawyer to review my contract. Nothing else you'll receive peace of mind and a valuable experience working with the lawyer. Once the contract is drawn to your liking, write it off as a business expense, then continue using your contract till the ink wears off.

In theory this should be a one time expense so it is highly unlikely you'll be returning month after month (or even yearly) to update your contract IF it is done correctly the first time around. Maybe you can get lucky and take one of the lawyers out to lunch and ask a few of your questions versus paying for an entire formal meeting. I keep hearing that as a suggestion, one I have yet to try but have it on my networking bucket list.

It's best to have an attorney look over your paperwork since they tend to be more familiar with the laws in your area.

Hope that helps!

This is one of those cases where it will cost you a whole lot more down the road if you get it wrong.  Have an attorney look at it.

Sharon

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