We've agreed verbally but are meeting this afternoon to sign the offer. I'm gleaning this from DeCima's book.
McLennan CAD Property ID:xxx
Legal Description (partial):xxx Block 3 Lot 4B 5 Acres 0.2083
ADDRESS: 2222 xxxx Ave.
Waco, Texas 76706-2906
DWELLING: The house and outbuilding(s) located at the above address
SELLER:Maria S xxx
BUYER:Waco House BUYER, LLC
Terms and Conditions
SELLER warrants there are no outstanding “fix-it” letters or letters of demand for repairs, code violations, hazardous conditions or red tags from the city, county, or any other government agency.
Offer is contingent upon BUYER being able to obtain a standard fire insurance policy.
BUYER agrees to waive standard lead-based paint and asbestos tests required for older properties—years built from 1938 to 1952.
SELLER warrants DWELLING is “hooked up” and serviced by city/county water and sewer providers.
BUYER has observed marginal condition of roof on the DWELLING. BUYER will waive roof inspections and hold SELLER harmless for leaks in the DWELLING.
BUYER is aware that there are floor issues. BUYER will waive foundation inspections and hold SELLER harmless for foundation problems.
BUYER has observed possible termite damage. BUYER will waive the termite inspection and accept the DWELLING in “as is” condition.
SELLER warrants there are no unpaid utility assessments or undisclosed debts or liens, recorded or unrecorded, secured by the DWELLING and property being purchased.
SELLER shall remove all personal items, furniture, food or other items that are not part of the real estate within seven (7) days after acceptance of this offer.
BUYER shall have the right to inspect and approve DWELLING and property (inside and outside) with SELLER or her agent within seven (7) days after acceptance of this offer.
SELLER agrees that the heating and cooling unit that was removed from the DWELLING’S front room shall be returned in good working order.
BUYER and SELLER agree to the customary split of closing costs.
SELLER agrees to furnish at SELLER’s cost a Title Policy as part of this transaction.
Upon acceptance of this offer, BUYER or his agent will deliver a deposit of $1,000 to the closing Title Company (to be agreed upon). Closing shall be set for 60 days or sooner and the Balance of the purchase price will be paid at closing.
BUYER’s AcceptanceDateSELLER’s AcceptanceDate
Hi @Doug Saylor - I was expecting to help evaluate an offer price in relation to its rent rate & property description. Contract language is usually pretty state-specific and I am hesitant to comment on that. Good luck though!
Thanks, Steve. I'm new to this forum. Is there another/better place to post a language question for an informal offer in Texas? I did change the title to be more specific.
Doug, do yourself a favor and partner with an active, experienced investor who can fill you in on the TREC contract form, addenda, etc. I'm not sure what an "informal" offer is, but why waste time with anything other than an offer that, if signed by the other party, constitutes a legal binding contract? Regarding the proposed language you provided above, take whatever book, etc. you got this from and toss it as it's nothing but a problem looking for a place to happen.
Why wouldn't you just use the TREC form?
@Doug Saylor - I have had good results drafting a simple letter I call a letter of intent (LOI). Not an 'official' one like they do in large commercial negotiations, but a letter that is kind of personable and states some things you like about the house/property and a few ways you would be interested in purchasing it.
I have best results with LOIs when dealing directly with the seller. Try and solve their problem. Dealing directly with the seller is about the only way to know what their problem or pain point is. Having to ask your agent to ask their agent to ask the seller who tells their agent who tells your agent who tells you doesn't work. Try doing that 7 times, right?
You can get specific in the formal offer (TREC?) -with the personal & inspection items and pest stuff after you hammer out some broad stroke concepts in the LOI. My LOIs usually have 3 methods of buying, with escalating price points that I would be willing to do. Hope this helps!
Don't use this as a contract for sure. Also, there is no closing date/time frame, and why would a seller be required to clean the house out before your inspection period is over?
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!