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What happens when someone wants something different than in the normal contract? Like for example paying cash and not needing loan contingency, or requesting specific language about what's included in the sale.
If someone is paying cash, they do not check the option for financing. The financing option is the only option that would allow a contingency for financing, so it just wouldn't be included because it's not checked.
I'm not sure what you mean about "what's included in the sale." The contract specifically states every thing in the house that is attached or built-in, and the accessories for those items are included. If someone wants to include a "non-realty item" like a fridge, washer, dryer, pool table or patio furniture, or anything else considered "personal property", you would fill out the non-realty items addendum form and list those items, and that is then part of the contract.
That's interesting. Is the purchase contract standard?
Yes in all the states I listed. You and your agent fill in boxes, check yes/no, and submit it. The seller has a place for counter offers and it goes back and forth. The title company does everything else. Easy-peasy
Texas is a non-attorney state. We use promulgated forms through TREC and TAR and the title companies handle the backend closing stuff.
You're more than welcomed to use an attorney, but you're going to pay the attorney to say, "Yep, that fill in the blank form has been filled out..." There is nothing an attorney can change to a promulgated form. If an attorney wants to create his own form, then the other party would have to obtain an attorney also because agents aren't allowed to help explain any contract that's not the promulgated form that we're trained on. But what typically happens is a seller says, "I'm not signing your attorney's form, you need to use the Texas form." Sellers don't like to sign things that they aren't comfortable signing nor able to get an actual explanation about.
Texas doesn't require that buyers and sellers use attorneys for real estate transactions, but folks can and do. And though real estate broker and agent licensees can't, won't or otherwise might not change selected language on promulgated RE sale forms - TREC docs, for example - the actual parties and their attorneys are largely free to do so, limited only by the other party's acceptance of said proposed changes. They can strike terms on the boilerplate form, replacing them with initialed new ones. Might make the contract a little busy with strikes and inserts, but it's allowed if the parties so choose.
I've often used a lawyer for RE transactions - buyer and seller side - usually for less than $150 an hour. Whether answering my questions, advising on contract modifications and other issues, drafting or reviewing docs or negotiating on my behalf, attorneys are handy team members at times. They're especially cost-effective when I use a flat-fee MLS service, because that combined with my attorney's assistance costs me far less than the many thousands I'd pay a traditional listing agent.
Texas doesn't require that buyers and sellers use attorneys for real estate transactions, but folks can and do. And though real estate broker and agent licensees can't, won't or otherwise might not change selected language on promulgated RE sale forms - TREC docs, for example - the actual parties and their attorneys are largely free to do so, limited only by the other party's acceptance of said proposed changes. They can strike terms on the boilerplate form, replacing them with initialed new ones. Might make the contract a little busy with strikes and inserts, but it's allowed if the parties so choose.
I've often used a lawyer for RE transactions - buyer and seller side - usually for less than $150 an hour. Whether answering my questions, advising on contract modifications and other issues, drafting or reviewing docs or negotiating on my behalf, attorneys are handy team members at times. They're especially cost-effective when I use a flat-fee MLS service, because that combined with my attorney's assistance costs me far less than the many thousands I'd pay a traditional listing agent.
These days, if there's a lender involved, they're not going to want to see all those strikes and inserts. They're going to want a clean copy of the contract be the first thing they see, and clean addenda.
Don't know how many residential deals you've seen - if you're an agent, it would be more than most - but the only times I've personally, as an agent, seen an attorney involved (beyond a phone call to the TREC attorneys with a question) is if it's a complicated farm and ranch deal which is pretty much conveying a business as well as the property, or if something has gone VERY wrong in the process. Yes, people are welcome to use an attorney, and it says so in big bold letters in the contract and states that agents are NOT attorneys, and has a place for each party to put the name and contact info of their attorney if they wish to use one so all docs will be sent to them by the title company.
I've had one client choose from the get-go to use an attorney. He was from out of state, and he wanted his (non-real estate) attorney in Illinois to review all the documents. Fine with me, and he got to do so, but not only was he not familiar with Texas real estate law but he wasn't familiar with Illinois real estate law, either. But that's what the client wanted, so that's what the client got. (Nothing was changed at all in any of the docs or the negotiations as a result of this attorney reviewing them, by the way.)
It all depends on the state you are buying property in, if an attorney is used or not.
Some states, will mostly be closed and handled by a Title Company or by the Mortgage Holder.
Some states, the office broker will close the sales, as the state licenses them to have the right to practice law on a limited basis concerning real estate and will allow them to close transactions.
If an attorney is involved, make sure it is a real estate attorney. I have seen too many divorce attorneys etc., that gave very bad advice and some was not even legal to do. Real estate requires an attorney that is knowledgeable in real estate.
I once sold a large mobile home park, with a nice restaurant that was closed on the highway. The mobile home park profit, paid the total mortgage, taxes, and still left a little profit. That restaurant was extremely profitable as they did not have to cover a lot of normal expenses when it was reopened.
The listing agent, had an attorney handle the closing. I insisted I be sent (I was half a day's drive away from that property) the closing papers. I got them, and they were completely unusable. It was a divorce attorney, who had never handled real estate papers. It was a private mortgage held by 3 different older men. He had not even put a lot of the things that were required to be paid on the financial balance sheet. I spent a day rebuilding them and sent them back. The attorney re-wrote everything as I requested. When we got there for the closing, the attorney handed me a copy of the closing papers, and I had to resort them in a logical order for closing. The buyer and the sellers started asking questions, and the attorney sat there looking like a deer in the headlights just before it hit by a car, and could not even answer the question. I answered it for him, and he said that is right. It soon got to where I was running the closing, getting the signatures where needed and answering all questions. After each question, I would turn to the attorney and say am I right. His answer was always, "That is right". I know he never did know if I was right or wrong, but I had an attorney sitting there verifying everything I said.
The buyers and sellers, stopped asking him any questions, as never knew one answer. I am telling you about this, to show your need to get a good real estate attorney to give you advice, not a divorce attorney or a jack of all trades attorney. I have seen too many of those give completely bad advice.
Actually I will be buying and/or building in South Carolina, are the standard forms state specific. Sorry for all the questions, but I'm new to this process and am looking to become an informed consumer.
SC is an attorney state, in that we have attorneys involved in every transaction to close it. We have state/local forms that are used including a required written agency agreement when you hire an agent. The agent will help locate, negotiate, and contract the property at which point the paperwork is then sent to the closing attorney so that he/she may complete the titlework, prepare a HUD, provide title insurance, etc.
My suggestion in SC is to interview and hire a good local agent and let them guide you through the process.
Oh, and most builders have their own contract, require you to use it, and don't allow changes. My way or don't by my house mentality so you just have to go with it unless it's a custom builder.
These days, if there's a lender involved, they're not going to want to see all those strikes and inserts. They're going to want a clean copy of the contract be the first thing they see, and clean addenda.
Don't know how many residential deals you've seen - if you're an agent, it would be more than most - but the only times I've personally, as an agent, seen an attorney involved (beyond a phone call to the TREC attorneys with a question) is if it's a complicated farm and ranch deal which is pretty much conveying a business as well as the property, or if something has gone VERY wrong in the process. Yes, people are welcome to use an attorney, and it says so in big bold letters in the contract and states that agents are NOT attorneys, and has a place for each party to put the name and contact info of their attorney if they wish to use one so all docs will be sent to them by the title company.
I've had one client choose from the get-go to use an attorney. He was from out of state, and he wanted his (non-real estate) attorney in Illinois to review all the documents. Fine with me, and he got to do so, but not only was he not familiar with Texas real estate law but he wasn't familiar with Illinois real estate law, either. But that's what the client wanted, so that's what the client got. (Nothing was changed at all in any of the docs or the negotiations as a result of this attorney reviewing them, by the way.)
"Clean" is subjective, and I've yet to see a lender concern itself w/strikes + inserts in contracts between a buyer and seller. Notes, loan applications, mortgages and deeds of trust? Perhaps. But those are agreements or declarations between the borrower and lender. And that's a different story.
Attorneys don't need to have amended a contract provision to prove their worth. They're not paid to change contracts for change's sake. They're hired for appropriate legal counsel, representation and advocacy. Clients get the "I don't know - I'm not an attorney" or "I can't do that - I'm not an attorney" refrain from RE + escrow agents all the time, so it should be no surprise when buyers and sellers hire an actual lawyer.
"Clean" is subjective, and I've yet to see a lender concern itself w/strikes + inserts in contracts between a buyer and seller. Notes, loan applications, mortgages and deeds of trust? Perhaps. But those are agreements or declarations between the borrower and lender. And that's a different story.
Attorneys don't need to have amended a contract provision to prove their worth. They're not paid to change contracts for change's sake. They're hired for appropriate legal counsel, representation and advocacy. Clients get the "I don't know - I'm not an attorney" or "I can't do that - I'm not an attorney" refrain from RE + escrow agents all the time, so it should be no surprise when buyers and sellers hire an actual lawyer.
Yes, "Clean" is subjective. Just about as subjective as "appropriate legal counsel, representation and advocacy."
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