Lansing, Michigan Wholesaling Purchase Agreement
I am just beginning my wholesaling journey in Lansing, Michigan. I am working on creating a purchase agreement. I realize this is something I need to have my attorney look at, and I will once they are finished. However, to save money, I want to get both forms as close as possible to perfection so they don’t have to spend hours tweaking them. I downloaded a standard Michigan purchase agreement and am now tweaking it. I realize not many of you are attorneys, but I’m wondering if anyone can take a moment to look this over and let me know if anything big stands out that needs changed before I submit it to my attorney for review. Also, as far as I can tell, this contract is not assignable. What do I need to add, and where do I need to add it in order to make this legally assignable?
Thank you all in advance! I am in love with this community. It is so helpful! (Form is below…)
(DISCLAIMER: I realize none of you are offering legal advice… Don’t worry. I’m not going to sue you.)
AGREEMENT TO PURCHASE REAL ESTATE
The undersigned (herein “Purchaser”) hereby offers to purchase from the owner (herein “Seller”) the real estate located at _____________________________________________ in the city of _______________________________, County of __________________________, State of ________________________, the legal description of which is _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Upon the following terms and conditions:
1. Purchase Price and Conditions of Payment
The purchase price shall be ___________________________________ Dollars ($___________________) to be paid in its entirety in cash at the time of closing the sale.
2. Earnest Money Deposit
As earnest money Purchaser deposits $__________________with the broker which shall be applied to the purchase price at the time of closing the sale. In the event that this offer is not accepted by Seller this earnest money deposit shall be promptly refunded to Purchaser by the broker. In the event that this offer is accepted by Seller and Purchaser shall fail to perform the terms of this agreement the earnest money deposit shall be forfeited as and for liquidated damages suffered by Seller. Seller is not, however, precluded from asserting any other legal or equitable remedy, which may be available to enforce this agreement.
3. Real Estate Taxes, Assessments, and Adjustments
Real Estate Taxes accrued against the property shall be prorated through the date of closing the sale and Seller shall pay all taxes allocated to the property through that date of acceptance of this offer to purchase. Rents, if any, shall be prorated through the date of closing and all rent deposits shall be transferred to Purchaser. Existing casualty insurance shall be canceled/prorated through the date of closing.
4. Title to the Property
Seller shall provide purchaser prior to the closing and promptly after the acceptance of this offer, at Seller’s expense and at Seller’s option an abstract of title to the property brought down to date or an owner’s policy of title insurance in an amount equal to the purchase price, said abstract of policy to show marketable or insurable title to the real estate in the name of Seller subject only to easements, zoning and restrictions of record and free and clear of all other liens and encumbrances except as stated in this offer. If the abstract or title policy fails to show marketable or insurable title in Seller a reasonable time shall be permitted to cure or correct defects. Seller shall convey title to Purchaser at the time of closing by a good and sufficient general warranty deed free and clear of all liens and encumbrances except as otherwise provided in this offer and subject to easements, zoning and restrictions of record.
5. Possession of the Property
Purchaser shall be given possession of the property on _______________, 20____. A failure on the part of Seller to transfer possession as specified will not make Seller a tenant of Purchaser, but in such event Seller shall pay to Purchaser $____________________per day as damages for breach of contract and not as rent. All other remedies, which Purchaser may have under law, are reserved to Purchaser.
6. Risk of Loss
The risk of loss by destruction or damage to the property by fire or otherwise prior to the closing of the sale is that of Seller. If all or a substantial portion of the improvements on the property are destroyed or damaged prior to the closing and transfer of title this agreement shall be void able at Purchaser’s option and in the event Purchaser elects to avoid this agreement the earnest money deposited shall be promptly refunded.
7. Improvements and Fixtures Included
This offer to purchase includes all improvements, buildings and fixtures presently on the real estate including but not limited to electrical, gas, heating, air conditioning, plumbing equipment, built-in appliances, hot water heaters, screens, storm windows, doors, Venetian blinds, drapery hardware, awnings, attached carpeting, radio, television antennas, trees, shrubs, flowers, fences and
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8. General Conditions
It is expressly agreed that this agreement to purchase real estate includes the entire agreement of Purchaser and Seller. This agreement shall be binding upon the heirs, personal representatives, successors and assigns of both Purchaser and Seller. This agreement shall be interpreted and enforced in accordance with the laws of the State of______________________________.
9. Special Conditions
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10. Time for Acceptance and Closing
This offer is void if not accepted by Seller in writing on or before _________________________ A.M./P.M. of the ______________________________day of ________________________, 20____.
Closing of the sale shall take place _____________ days after Purchaser’s receipt of an abstract showing marketable title in Seller or title insurance binder showing insurable title in Seller. This offer is made at ______________________________, State of ____________________, this ____________________ day of ________________________________, 20_______.
____________________________
(PURCHASER)
____________________________
(PURCHASER)
Acceptance by Seller
The foregoing offer to purchase real estate is hereby accepted in accordance with the terms and conditions specified above. The undersigned hereby agrees to pay a brokerage fee of $_______________________ to ________________________, broker, in accordance with the existing listing contract.
Dated this ____________________________ day of _____________________________, 20_____.
____________________________
(SELLER)
____________________________
(SELLER)