Signatory Real Estate for Sale by Owner Contract Template Made Easy

Digisign real estate for sale by owner contract template

hi welcome to your for sale by owner coach video series my name is nate storm and standing here with me is Amy Oh side Amy is an Illinois licensed attorney with over 15 years of real estate experience with Amy's help by the end of this video you will have a solid understanding of the contracts and paperwork you can expect to encounter when selling your home Amy I know that paperwork for residential real estate transactions vary by state to state but overall what form should a seller expect to encounter when selling a home well the most obvious form would be the contract the contract is the form that governs the transaction and gives all of the terms that the parties have agreed to and it is a legally binding document and like you said it definitely varies from state to state and even town to town sometimes but typically they will have some of the same types of information on them the property the address the characteristics of the property the purchase price obviously the personal property and fixtures that are included in the sale the closing date the contingencies the contingencies are the events that have to happen in order for the parties to be obligated to close the contract also sets out the more specific terms like how the real estate taxes are going to be paid who is going to be responsible for that and then things like title clearance and other things that the seller is going to be required to do prior to closing or things that the buyers entitled to or required to do prior to closing Wow the contract definitely sounds like an extremely important document whether the forms should a seller expect to prepare for when selling a home well the seller has a lot of what they need already in their home an old survey that they may have gotten when they purchased the property can be helpful gathering together all of the owner's manuals seats and warranties for the personal property they have in the home or work that they've done on the home and then having all the information at the ready for whomever they're going to work with on the transaction with respect to liens well it's obviously important for homeowners especially homeowners who are selling their home without an agent to stay very organized can you provide some information about disclosures when are they needed and used well disclosures vary from area to area very much so but there's a lot of different types of disclosures and the purpose of them is to give the buyer material information about the property and material could really be defined as generally as saying something that might affect the purchasers desire to purchase the home their decision to purchase the home these could be disclosures about lead paint mold in the property asbestos it could be something that you might not think of if anybody has ever died in the property within a certain time period some states have a requirement for that but generally speaking the condition of the property and the fixtures and the property whether or not the seller is aware of any material damage it - those are any material defect - those is a fairly typical one and the disclosures really help the seller make the buyer aware of things that they should look at and it gives the seller the opportunity to have the buyer do their own due diligence rather than rely on the seller so giving the buyer the information allowing them to do with it what they will and taking it from there well it's good to know that the disclosures benefit both of the home buyers and sellers can you please tell us a little bit about the role that earnest-money plays in a real estate transaction earnest money is the consideration on the contract so it is the buyers good-faith money deposit telling the seller that they are serious about purchasing the home so it's essentially the buyer putting their money where mouth is and the amount of the earnest money varies depending on the wishes of the parties local custom and so forth the earnest money can be held by any number of people typically in an escrow account in the buyers name for the consideration of closing and either one of the real estate agents the attorney the title company or any other third party can hold that money and what form should a seller expect to come across at a closing well the closing itself is typically done through an escrow agent and the escrow agent can be an attorney it could be a title company it could be an other individual or entity and the closing itself has a number of documents one of the most well-known documents would be the deed deeding the title of the property from the seller to the purchaser then there are some other ancillary documents like an affidavit of title and these are used in some areas not used in others but they are where a seller represents that there are no outstanding liens against the property there could be a bill of sale which is more or less the buyers receipt for the personal property that goes along with the closing or with on the contract so the fixtures and personal property it's the sellers representation that we own these things free and clear we're transferring the title to them to you and they typically don't have any you know warranties with them just saying that you know we're transferring title to you but the most important document is the closing statement because it represents the entire transaction it is the amount of money that is being paid for the property and all of the expenses and credits that are being done pursuant to the contract and then that tells what the sellers bottom line is and how much money they'll be walking away from in proceeds well with all the information you just provided am a for sale by owner home sellers will now have a much better understanding of the contracts and paperwork involved in real estate transactions thanks Amy thank you you