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to allow time to ascertain that the parties can each perform the terms of the agreement which are written and signed promises to perform.
THE PURPOSE SALES CONTRACT
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Shows buyer’s “good faith”No law governs the amount Earnest money is not considerationNot required for valid contract
EARNEST MONEY DEPOSIT
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Provision for buyer’s earnest money deposit
Buyer’s offer to purchaseAcceptance of the offer by sellerProvisions for payment of broker feesInstructions to closing agentPossession
PURCHASE CONTRACTS
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Closing AgentProratingInspectionsLoan ConditionsProperty damageBuyer defaultTime limits
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CONTRACT TERMS
This is a legal term which means the time limits set by the contract must be faithfully observed or the contract is voidable by the non-defaulting party.
Due to the legal nature of this term, it should not be
used by the real estate agent!
“TIME IS OF THE ESSENCE”
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SignaturesAcceptanceNotificationFederal ClausesPreprinted ClausesRidersNegotiation
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ADDITIONAL CONTRACT TERMS
LEAD-BASED PAINT IN HOUSING
Approximately three-quarters of the nation's housing built before 1978 contains some lead-based paint. Federal law requires that before a buyer or tenant becomes obligated under a contract for sale or lease the seller or landlord must disclose the possibility of lead-based paint and lead-based paint hazards and provide available reports along with the pamphlet “Protect Your Family From Lead in Your Home.”
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A short purchase contract used to secure a real estate transaction until a more formal contract can be signed .
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BINDER
Used to express the mutual intention to buy, sell, lease, develop, or invest
Outlines agreement of termsNo obligation is created
LETTER OF INTENT
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If the preprinted form requires extensive cross-outs, changes, and riders, the contract should be drafted by a lawyer.
A real estate license is not a license to practice law.
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PRACTICING LAW
Installment ContractsOption ContractsLease with Option to BuyRight of First RefusalExchange Agreements
OTHER TYPES OF CONTRACTS
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Deed and Installment Contract Compared
Deed Installment Contract
Buyer SellerDeed
Buyer Seller
Buyer Seller
Buyer Seller
Buyer Seller
Deed
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The job of the real estate agent is to determine the business details of the transaction and not to practice law!
A real estate license is not a license to practice law.
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