Who makes the purchase and sale agreement, plus a contingency to buy a real estate property?
Who makes the purchase and sale agreement:A Purchase and Sale (P&S) understanding is an authoritative archive that has been arranged and consented to by lawyers speaking to the buyer and seller in a land exchange. In Massachusetts, it must be marked by a purchaser and dealer after both sides have gone to a concurrence on an offer on a bit of land. The P&S will incorporate the last deal cost and all terms of the buy, and it covers the weeks between when a property is removed the market and shutting, a few conditions stretch out past the end date.takes after is a rundown of normal possibilities that can be found in most home buy understandings.Contingency to buy a real estate property:Financing/Loan ContingencyAll home deal contracts will be dependent upon you, the Buyer, having the capacity to secure a credit or other wellspring of financing with which to buy the house. This possibility may put a day and age amongst marking and shutting in which the purchaser must secure this financing. For a first time purchaser, the a lot of cash included can appear to be very overwhelming, however remember this is quite normal. In the event that you can pay money in advance for the offer of the home, then you will have the capacity to discard this possibility.2. Home InspectionA typical possibility inside a home deal assention contract is one that gives the purchaser the privilege to no less than one home review before a specific date. This possibility ought to likewise give the purchaser the chance to escape the agreement, or request repairs, if the purchaser is not, in compliance with common decency, happy with the state of the house.3. ProtectionMost property holders will need to ensure that their new buy has home protection before moving in. Be that as it may, insurance agencies have turned out to be increasingly hesitant to protect properties and homes in specific parts of the nation.4. TitleThis can be a standout amongst the most imperative possibilities for you as the purchaser. This possibility will permit you to leave the agreement if the dealer of the home can't demonstrate that he or she has substantial legitimate title to the property that is available to be purchased.What to do nextSubsequent to considering what sorts of possibilities you need in your home deal understanding, set them in motion as a feature of your offer to purchase the house.
How do I find an attorney in Washington State with experience in litigation related to commercial real estate?
The same way you find a lawyer anywhere else!There are two groups of people who know the attorney you’re looking for:Other attorneysOther people involved in commercial real estateStart with a phone call to someone you know in either category. If you’re truly without any contacts in either area, go to your state bar’s lawyer referral site and start there.Lawyers of all types know what other lawyers do. Lawyers commonly have friends who are lawyers and work in different fields. If they don’t know someone right away, they can point you to someone else. For example, if you used a commercial law lawyer to get your commercial real estate together, start there - they WILL know someone who does litigation in the field because it’s likely that this isn’t the first time that a dispute has happened with one of their clients.Along the path, allow other lawyers to point you in the right direction and to make sure that you’re not pursuing an impossible case. Although a corporate lawyer may not have done any litigation, you can bet your bottom dollar they know the law in the area and have been keeping up with the case law so they can protect their client’s interests in future. They can certainly be trusted if they tell you you’re wasting your time or that some other path other than litigation is a better way to go. Again, if they’ve been in the field for any period of time, you’re not the first client they’ve had with this problem.Or go the other way - speak to other people in commercial real estate and ask who their lawyer is. Even if they don’t know a litigation lawyer, they can point you to the lawyer they used. If a lawyer can’t help you with your problem, they can probably point you in the right direction to someone who can.
How difficult is it to move state to state with a real estate sales license and/or real estate appraisal license?
Real estate salesperson license is different from a real estate appraisal license. Choose one and then go to the state’s Department of Licensing website and look for the word Bruce Feldman mentioned: “Reciprocity.”You will find your answer in the state law section on Licensing, Education and Testing. If it’s too difficult to understand, call the real estate department of licensing’s call center and ask, then call the appraisal licensing department.This Q&A is common and each state will have their own rules and laws regarding honoring neighboring state’s licenses.
If your real estate attorney was negligent and had you sign an agreement without explaining it to you, can you back out of the home purchase?
No. If you had questions you should have asked them to the attorney before signing the contract. If the attorney was not answering them in a way you can understand you could have found a different attorney. Not all lawyers are equal in talent and communication skills.Finally you still might be able to back out of the contract. Most purchase agreements provide a timeframe for inspection and allow a buyer to terminate during the inspection period for any reason or no reason.If you missed the inspection period deadline that means your earnest money deposit is at risk (or non refundable) and the seller can keep it. Despending on how large the earnest money deposit (a few hundred bucks to several thousand) you should be able to make a business decision if it's worth walking away from the deal if you really don't want to buy the property. It may cost you some money in losing your deposit but it may be a better decision than closing on a property you don't want to buy. Good luck!
When a Purchase and Sale Agreement doesn't close and neither buyer nor seller had signed the final paperwork on closing day, how do you determine which party breached the contract? I'm in Washington State and our contract was the standard MLS form.
It depends on why the parties didn’t close the transaction. You would need to describe the sequence of events or reason why it evolved this way.Example 1: Let’s say the buyer’s lender needed additional time to get the loan documents into escrow and the loan funded (an avoidable issue but one which occurs quite often). Without the loan docs to sign, the closing gets delayed. The seller needed the funds on time to close on the purchase of their next home on time, so now we’ve got one very upset seller!This would be a breach by the buyer. The seller can sign quickly just after the buyer does, so they wait for confirmation that the loan docs are received, etc. In this case, neither party has signed but it’s the buyer’s fault.Example 2: Let’s say the buyer is ready to sign the loan documents but the lender requires a particular document signed by the seller. The seller is scheduled to sign their papers on Thursday afternoon and closing (title transfer to the buyer) is set for the following day, Friday afternoon*. The buyer has movers and everything set to move-in Friday evening.Unfortunately, the seller misses the bus to the signing appointment and cannot get to the escrow office before it closes on Thursday. The seller reschedules to sign on Friday, but the buyer is not available to sign the loan docs on Friday, so the closing slips to the following week. It turns out that Monday is a holiday, so the closing gets delayed until Tuesday (at the earliest). Uh oh…The buyer loses their appointment with the moving company, they have to cancel all the friends who were going to help, and the buyer is leaving on Tuesday for a business trip, so a bad situation is getting worse. We’ve got one very upset buyer who now wants compensation.This would be a breach by the seller. In this case, neither party has signed but it’s the seller’s fault.And, yes, stuff like this does happen. After you’ve been a broker for 20+ years, you have a few stories to tell.*Assume that we table fund Friday morning and record special Friday afternoon. It happens.Note: the answer by Robert Flynn misunderstands the question: the Purchase/Sale Agreement has been signed and is executory. The poster said the final closing papers (loan, deed of trust, etc.) were yet to be signed. Big difference.
Can I sue a homeowner or their real estate in a situation where both parties signed a purchase agreement then the buyer signed the contract, didn’t send it to me and eventually backed out?
Almost certainly no.There are certain things you must have to create a legal, enforceable contract:Legal intentCapacity of the partiesConsideration (something of value)Mutual agreementAdditionally, almost everything involving real estate falls under the Statute of Frauds. This comes from the English Common law, and says the contract must be in writing to be enforceable. It includes agreements to by or sell real estate and agreements made in consideration of marriage. (Just tossing that last in because its interesting)A real estate purchase contract starts with an offer in writing. The offeree (seller) may accept the offer as presented, reject it or make a counter-offer. Any change to the offer, no matter how minor, constitutes a counter-offer. The original offeror can do the same thing. There is no contract until and unless there is the meeting of the minds—complete agreement—and the agreement has been communicated to all parties.Once there is a meeting of minds, the document becomes an executory contract, that is, one which is in the process of being performed. Almost all real estate purchase agreements contain certain contingencies (we often call them “weasel clauses). Among these are typically loan, appraisal and inspection contingencies.The loan contingency states that the buyer must apply for and be approved for a loan within a certain period (typically 17–21 days). If the buyer does not get the loan for any reason, they get to walk, and they’ll get their earnest money deposit (the consideration) back.If the property appraises for less than the purchase, price, they can walk. If there is something on an inspection report they don’t like, they can walk.Once the buyer has removed all contingencies, they are obligated to perform—to complete the purchase. If they don’t, they are said to be in breach—violating the contract—and may forfeit their deposit.Most real estate purchase contracts today are written by the various state Realtors’ Associations. They typically contain a “Liquidated Damages” clause to be initialed by the parties. This clause states in essence, “The parties agree that determining exact money damages in the event that the buyer does not perform is very difficult. Therefore, buyer and seller agree that the buyer’s earnest money deposit will be considered satisfaction for a breach by the buyer.”In plain language the Liquidated Damages clause states that if a buyer decides not to proceed after having removed all contingencies, they may forfeit their earnest money deposit to the seller.Most contracts also contain an Arbitration Clause. By initialing this, both parties agree to go to binding arbitration rather than filing a lawsuit.If the buyer in your case did not deposit a check with escrow, you never had a contract. If there were contingencies which they did not remove, such as a loan contingency, they are completely free to walk. If you made a counter offer which they chose to ignore, you never had a contract. If your acceptance of their offer was not communicated to them (typically be delivering to them a fully-executed copy of the purchase agreement), you did not have a contract.Someone who “ghosts” and does not take the steps to proceed with a purchase for whatever reason almost invariably has plenty of legal “outs” if they don’t want to go forward. I believe your best bet is just to get on with your life and find another buyer.My standard disclaimer: While I am confident in the accuracy of my statements here, no one should construe a single word of it to be legal advice. I am not an attorney, although I know a whole lot of really fine legalish words. The best. They’re terrific. Anyone who needs legal advice should seek such advice from a duly licensed professional. Relying on “legal” advice on Quora could be an indication of a need for another kind of professional help.I hope this is helpful. Good luck.
Hi. Anyone familiary with owning real estate in a different state? I own a property in Texas and recently just moved to Arizona. Is there any paperwork I should fill out with Texas?
Each state has different laws regarding tax liabilities, etc. Speak with an attorney and a tax professional in your state of residence, as well as the other state(s) in which you own real estate to learn about the implications. All the best to you!
How do you go about purchasing a four unit real estate property to rent out in a different state? Is this a bad or a good idea?
Whether or not buying an investment property in a different state is a good idea is going to be up to you. If you are going to do so you will need a good property manager and this will add an expense layer that may or may not be necessary should you buy locally.In any case when looking for an investment property you need access to the MLS. For properties such as single family homes, duplexes, triplexes, and fourplexes the residential MLS should work. The national search networks can give you some information and an over view but the local MLS will be much more accurate and up to date. For this you will need an real estate agent in the local area. I would suggest using an agent who is also a Realtor and find one who is familiar with residential investment property. They will know how to look beyond the listing and give you a fairly accurate idea of projected income and expenses, neighborhood demographics etc. They will essentially be your eyes and ears.Logistically, should you find a property you wish to buy it will work much the same as any other sale. An offer is made and price and terms and disclosures are made. Inspections are done and financing is completed and a closing attorney or escrow or title officer prepares papers and the transaction is closed.I would suggest setting up an LLC in the state the property is located.Free advice so I know it’s worth the price. Even with my years of experience I would hesitate getting involved with a long distance transaction unless it was in a city I could drive to in one day. I live in Atlanta so there are places in So. Carolina, Tennessee and Alabama or even the Florida panhandle I would consider, but the deal would have to be awesome. I prefer to stick close to home.