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Old 05-21-2018, 08:25 AM
 
33 posts, read 11,774 times
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Hi, looks we found good house we were looking for, and in order to make the offer we have to sign few documents, including sales contract, and I have few questions:

0. Is it a good idea to sign sales contract without attoney?

1. The contract states the terms of mortgage: Principle Amount, Downpayment, and Terms of Mortgage - 30 days. But the point is, that we still haven't finally decide on the terms, we are considering 15 years term. I wonder why sales contract even has the mortgage terms, why seller bothers about it?

If I sign the sales contract as is (mortgage term 30 years), does it mean I will have to apply for 30 years mortgage, and will not be allowed to apply for 15?

2. There are "initial" and "additional" deposits mentioned in the contract, they are in total around 10k. Is it normal? should I be concerned about it?

3. If I sign the contract, and then find that there is something wrong with the house, for example during inspection they find some problem, or we find something we don't like (e.g. broken AC system, or broken heating system, or roof is bad) will I be able to cancel or change the contract? There is a notice with the contract saying that only attoney will be able to cancel it withing 3 days, and this point is very concerning, because I haven't find anything saying that I can cancel it myself.
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Old 05-21-2018, 08:27 AM
 
2,187 posts, read 1,532,416 times
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No one can answer this question other than a lawyer. You definitely need to get a real estate lawyer. Is better to spend a thousand or two to avoid all kind of lawsuit down the road.
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Old 05-21-2018, 08:51 AM
 
595 posts, read 375,721 times
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You are in NY state, correct?

https://www.nolo.com/legal-encyclope...wnpayment.html


When someone makes an offer to purchase a home in New York, it’s typically done by filling out a one-page offer form provided by the listing broker. Unlike in other states, you are not expected to sign a form contract when you make your offer or to make what’s called an “earnest money deposit.” (The purpose of this deposit in other states is typically to show the buyers’ good faith and solid intentions to close on the deal.)

If the New York seller accepts your offer, it’s definitely good news, indicating that the seller is seriously interested in proceeding with the deal. The seller’s acceptance will likely be communicated orally to you or your broker, if you have one, by the seller’s broker. Despite this, neither of you is yet legally bound to go through with the home sale.

Accordingly, once your offer is accepted, it is essential that you and your attorney work as quickly as possible to finalize and sign a contract of sale with the sellers. This contract will lay out all the terms of the deal, such as price, contingencies, and closing date.

Before signing such a contract in New York, you should have an inspection of the property conducted, and if you are purchasing a coop or condo, your attorney should review the building’s books and records, including financial statements. Your attorney and the sellers’ attorney will also be the ones to prepare and negotiate the contract of sale. After these steps are completed, the contract will be ready for you to sign.

Last edited by photogal9; 05-21-2018 at 09:00 AM..
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Old 05-21-2018, 08:58 AM
 
Location: Rochester, WA
3,827 posts, read 2,047,976 times
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Quote:
Originally Posted by phantom4 View Post
Hi, looks we found good house we were looking for, and in order to make the offer we have to sign few documents, including sales contract, and I have few questions:

0. Is it a good idea to sign sales contract without attoney?
The answer to this question depends a lot on what area you are in. In some areas attorneys are customarily used, in our area, they are not.

Quote:
1. The contract states the terms of mortgage: Principle Amount, Downpayment, and Terms of Mortgage - 30 days. But the point is, that we still haven't finally decide on the terms, we are considering 15 years term. I wonder why sales contract even has the mortgage terms, why seller bothers about it?

If I sign the sales contract as is (mortgage term 30 years), does it mean I will have to apply for 30 years mortgage, and will not be allowed to apply for 15?
The type of loan and down payment you are proposing does speak to the strength of your offer, potentially, compared to others. For example, someone with a significant down payment available might be able to cover more unexpected costs and issues along the way... up to an including a low appraisal or higher than expected closing costs. Someone who is bringing little or no cash to the table may not have the ability to ride through those problems. The loan type can mean different appraisal and loan processes that might be viewed as easier or more difficult for the house to pass successfully. So it does matter to the seller.

As for changing it... important to know... Is there a financing contingency? Usually there should be if you are applying for financing. Usually willing buyers and willing sellers can request to amend financing terms by agreement with an addendum during the contract if circumstances change. Most sellers would not object to the type of change you've proposed... But if you cannot get seller to agree to changes, it may affect the terms of your financing contingency.



Quote:
2. There are "initial" and "additional" deposits mentioned in the contract, they are in total around 10k. Is it normal? should I be concerned about it?

I don't know what those deposits might be. In our area we commonly have earnest money... no other. deposit... other areas have different customs.

Quote:
3. If I sign the contract, and then find that there is something wrong with the house, for example during inspection they find some problem, or we find something we don't like (e.g. broken AC system, or broken heating system, or roof is bad) will I be able to cancel or change the contract? There is a notice with the contract saying that only attoney will be able to cancel it withing 3 days, and this point is very concerning, because I haven't find anything saying that I can cancel it myself.
Is there an inspection contingency? Usually there should be if you will be doing inspection and want the ability to cancel or amend based on that inspection.


We can't know exactly what is in your contract. I would ask your agent these important questions! If they can't explain to you, or you feel you need more advice, then I would definitely recommend you seek further legal counsel.

My two cents.

Last edited by Diana Holbrook; 05-21-2018 at 09:28 AM..
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Old 05-21-2018, 09:02 AM
 
2,393 posts, read 4,856,485 times
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> If I sign the sales contract as is (mortgage term 30 years), does it mean I will have to apply for 30 years mortgage, and will not be allowed to apply for 15?

YOU (as buyer) get to select the terms in the mortgage contingency. If you want a 15 year mortgage you should put that in the contract.



You have violated the cardinal rule by not saying what state you are in. However- your questions suggest that you are unfamiliar with the process. If you do not have a full understanding of contingencies and/ or inspection periods in your state you should consult an attorney.
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Old 05-21-2018, 09:12 AM
 
33 posts, read 11,774 times
Reputation: 33
Quote:
Originally Posted by photogal9 View Post
You are in NY state, correct?

https://www.nolo.com/legal-encyclope...wnpayment.html


When someone makes an offer to purchase a home in New York, it’s typically done by filling out a one-page offer form provided by the listing broker. Unlike in other states, you are not expected to sign a form contract when you make your offer or to make what’s called an “earnest money deposit.” (The purpose of this deposit in other states is typically to show the buyers’ good faith and solid intentions to close on the deal.)

If the New York seller accepts your offer, it’s definitely good news, indicating that the seller is seriously interested in proceeding with the deal. The seller’s acceptance will likely be communicated orally to you or your broker, if you have one, by the seller’s broker. Despite this, neither of you is yet legally bound to go through with the home sale.

Accordingly, once your offer is accepted, it is essential that you and your attorney work as quickly as possible to finalize and sign a contract of sale with the sellers. This contract will lay out all the terms of the deal, such as price, contingencies, and closing date.

Before signing such a contract in New York, you should have an inspection of the property conducted, and if you are purchasing a coop or condo, your attorney should review the building’s books and records, including financial statements. Your attorney and the sellers’ attorney will also be the ones to prepare and negotiate the contract of sale. After these steps are completed, the contract will be ready for you to sign.
Sorry I didn't mention, I'm buying in NJ
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Old 05-21-2018, 09:44 AM
 
Location: Lakewood Ranch, FL
5,112 posts, read 7,639,834 times
Reputation: 5990
Here's a rule of thumb that works in any state, I believe. Don't sign documents that contain language you don't understand or terms you don't want. If you are pressured to sign, tell them it's not what you want and you'll sign when it reflects the agreement you want. Either that, or expect that you will be held to the language in the contract, like it or not, whether they say you will or not. A lawyer is probably never a bad choice and in some places necessary but the bottom line is there's a reason that the wording in the contract is what it is and, once you've executed the contract, the other party has every right to expect you to fulfill your obligations.
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Old 05-21-2018, 10:04 AM
 
595 posts, read 375,721 times
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Quote:
Originally Posted by phantom4 View Post
Sorry I didn't mention, I'm buying in NJ
You need a real estate attorney in NJ. Your REA should have a list of some RE attorney's they work with and will readily give that to you.

As other's have said, do not sign anything until you clearly understand what you are signing. Slow your roll.
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Old 05-21-2018, 10:05 AM
 
33 posts, read 11,774 times
Reputation: 33
Quote:
Originally Posted by rational1 View Post
> If I sign the sales contract as is (mortgage term 30 years), does it mean I will have to apply for 30 years mortgage, and will not be allowed to apply for 15?

YOU (as buyer) get to select the terms in the mortgage contingency. If you want a 15 year mortgage you should put that in the contract.



You have violated the cardinal rule by not saying what state you are in. However- your questions suggest that you are unfamiliar with the process. If you do not have a full understanding of contingencies and/ or inspection periods in your state you should consult an attorney.
Sorry, missed to mention this - NJ
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Old 05-21-2018, 11:01 AM
 
33 posts, read 11,774 times
Reputation: 33
And one more point I didn't mention, though not sure it is relevant to the questions I asked, it is Foreclosure, the property is owned by financial institution (bank) in NJ.
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