- Does an Attorney need to review my offer to purchase?
- When should I make an offer?
- What does the offer include?
- Does the offer to purchase include money?
- What is Earnest money and how much is needed?
- Who receives the Earnest money?
- What is an Escrow Account?
- How long do I have from the offer to purchase till the time to pay the price of the property?
- What happen if I decide not to continue with the purchase after making the offer?
- What is a reservation check on pre construction investments?
- What other payments are needed on pre construction investments?
The offer to purchase contract is normally a one page simple document. In some cases you might consider to have a lawyer review it, within the grace period noted in the contract due to the legally binding conditions and the fact that you will be signing and dating.
Once you have found the right property, let the sales professional know as soon as possilbe that you're ready to reserve or to write an "offer to purchase" � a written document that declares how much you are willing to pay for the home provided that certain conditions are met.
Your offer should have a time limit for the seller to accept it, reject it, or make a counter-offer. You should also include the date, if you plan to use an escrowe account, outline conditions, amongst other items. If a counter-offer is made, you will have some time to respond. Often, several offers go back and forth until an offer is accepted, or one party decides to end negotiations.
Yes, it is usually accompanied with an earnest money check.
When you sign an offer to purchase document, the sales agent will ask you for " earnest money." This refers to a monetary commitment that shows that you the buyer are serious about wanting to buy. Usually, you will be asked to write a check for 5 up to 10 percent of the sale price.
The earnest money on most occassions is made out to the notary, the sellers listing real estate agency or into escrow. I recommend using an escrow account which may cost a little more, but allows for safer administration of monies.
An escrow account involves a process whereby an impartial third party, such as an attorney, an escrow company or a title company, is entrusted with the job of seeing that the transfer of ownership from the Seller to the Buyer takes place according to the terms of the written contract agreed upon by all parties involved. The escrow agent (third party) holds any funds safely until all the conditions and details have been realized as instructed by the contract and disburses the funds to the proper parties at the proper time as outlined in the escrow agreement signed by both the buyer and seller.
In the offer to purchase a time period is normally stated for a response from the seller to either accept or reject the offer. Once offer has been accpeted, and if all documents are in order and clear, the establishment of the bank trust can be realized. This may take near 4 upto 6 weeks. With the bank trust established, the notary public can be contacted to initiate its process which may be 7 days approximately.
Normally the escrow account quantity is forfeited. On some occassions a penalty amount less than deposited into escrow by the buyer can be defined.
Most developers, when selling condos in Pre construction, will ask for investors to reserve units with a certain quantity ranging from $10,000 up to $20,000
Usually, once a reservation has been made on a unit, the developer will forward a copy of the contract for review by the investor. A certain amount of time is allowed to the investor to review such contract ranging from 7 days up to 30 days. If the investor decides to proceed, 20% up to 50% might be requested as down payment. 90% of the unit value is then collected during the construction process. And the final 10% is usually collected at the actual title transfer.