| Congratulations! You have chosen your | | | | Standard Clauses or Standard addendums, |
| favorite home in your home buying | | | | then it can be advisable to rely on the |
| adventure. Now, you can write up the | | | | experience and expertise of a good |
| contract or head back to the office. | | | | lawyer and sometimes a good realtor, |
| The following really depends on the area | | | | when as typically allowable in many |
| so check with local professionals deemed | | | | states. Be cautioned that a realtor is |
| by local (sometimes national) | | | | often not trained specifically in |
| governments to be the appropriate | | | | contract writing and will often if not |
| professionals for consulting and doing | | | | always be trained to disclose this fact |
| real estate transactions, including | | | | and of disclosure to seek the |
| disclosure for appropriate professionals | | | | appropriate professionals in each field |
| in all areas of expertise. | | | | of expertise along the way that you |
| In most cases, you will need what is | | | | might need. |
| called Earnest Money. A personal check, | | | | - A lawyer or in areas where admissible, |
| cashiers check or cash, typically in the | | | | a realtor or local deemed professional |
| amount of 1% of the purchase price | | | | can help in writing a contract and in |
| (depends upon the area), which is | | | | negotiating offers. The right |
| deposited into the brokerage trust | | | | professional will make sure you are |
| account or a title company (depends upon | | | | represented on paper well... this is the |
| the area), and credited to your purchase | | | | hallmark of good representation. The |
| (may depend upon the area) upon | | | | hallmark comes from the historically |
| successful closing of this transaction. | | | | supported law adopted by almost all the |
| Standard Real Estate Purchase Contract | | | | states taken from England called the |
| Several elements can be included during | | | | statutes of frauds. This grand maxim |
| your written contract. One good piece | | | | says that "if it is not in writing it |
| of advice would be to use the standard | | | | does not exist". As such, it should be |
| Real Estate Purchase Contract that is | | | | noted that a good lawyer or realtor will |
| used for your state. Local governments | | | | push for even minor details to be on |
| and appointed agencies governing those | | | | paper. |
| applicable contracts will have a large | | | | - Your offer is presented, negotiated |
| body of law and wisdom governing | | | | and upon "complete agreement between the |
| transactions in each particular state. | | | | parties in writing about the purpose and |
| If you draft your own contract, rather | | | | terms of the contract" and |
| than using the state sponsored ones, you | | | | "communication back to the party making |
| may be really going out on a limb by | | | | the offer ", the contract becomes |
| using something that is not proven to | | | | binding. The definition of "Acceptance" |
| avoid problems. | | | | and the type of "Communication" needed |
| - Another thing to remember, involves | | | | in order to make it a valid and binding |
| situations falling outside the normal | | | | contract, may vary depending on state or |
| used contracts, but still common enough | | | | county definitions and laws. So, |
| that the governing body, used to help in | | | | consult with your appropriate local |
| the formulation of addendum writing or | | | | professionals. |
| additions to the standard contracts, has | | | | Now that you have an accepted offer, |
| come up with Standard Clauses or | | | | some tasks lie in front of you to keep |
| 'Standard Addendums'. In such | | | | you in the keeping of your contract. |
| instances, it has often turned out to be | | | | These tasks or detailed steps may vary |
| very protective to use the language | | | | from state to state or county, but |
| governed by each state, rather than | | | | usually include the following: |
| making up your own language that when | | | | Application for a Loan, Sellers |
| checked in a legal sense, is full of all | | | | Disclosures, Escrow/Title Co. |
| kinds of ambiguity and inconistency. | | | | Coordination, Deadlines and events to |
| You may even have misunderstandings | | | | include Evaluations & Inspections, |
| thinking the other side knows what you | | | | Settlement Deadline, Closing and final |
| are saying, when they are reading a | | | | Taking of Possession. Your realtor |
| whole different scenario into what you | | | | lawyer can help guide you through all of |
| have written. Having the appropriate | | | | the deadlines, responsibilities, |
| realtor or lawyer, depending on which is | | | | inspections, and disclosures towards a |
| required for each state can help you | | | | smooth, seamless and successful |
| know what these clauses and addendums | | | | settlement and closing of your home |
| are. | | | | purchase! |
| - For situations that don't have | | | | |