7 Components of a Legitimate Contract
Are you an ethical cash buyer? Are you getting beat out by the shady investors? I was too! Which is why I wrote the post below - to educate sellers so they would be able to differentiate between the shady character and a true, honest real estate investor (like yourself).
The seven components below will provide you as a home seller with the best contract – one that will protect you from unmoral buyers and ensure a simple, straight forward closing. These are simple steps and some sound obvious, but don’t let a smooth-talking salesman rush you into signing without verifying your contract for the seven components below.
7 Components for the Best Contract:
- Ensure the contract is the standard 9 page Texas Real Estate Commission (TREC) contract. Look for this at the top of the page:
- Earnest Money – A deposit with the title company showing good faith. A contract without earnest money in Texas is not enforceable!
- A Reputable Title Company – The title company acts as a “third party” that will work to secure lawful and smooth transfer of ownership and funds. Some title companies can’t be trusted, others can be slow and unresponsive, so make sure they have a trusted name and ask for references!
- Proof of Funds – Verify that whoever is making a “cash” offer on your home has the ability to close. Some “house buyers” have no intention to close, but only to lock up your home in attempt to find a buyer.
- Accept the Property in As-Is Condition – No contingencies made for repairs.
- A Reasonable Closing Date – The closing date should be set for 30-60 days from the contract date, unless you request more or less time.
- Option Period – A time period that allows the buyer to back out without penalty. If applicable, be sure to ask for the option fee check when you sign the contract!
There you have it! Seven simple components that will protect you as the seller when signing a contract to sell your house. Again, remember to always check the contract for these components no matter how friendly the “cash buyer” seems to be.