The Real Estate Diversification Podcast
Business:Investing
In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through 30 plus provisions that must be in your purchase or sale contract, including 4 that will save or make you money.
HIGHLIGHTS:
0:00 – Intro
1:54 – Put the full and correct legal name of the seller in the contract
2:14 – Put the full and correct legal name of the buyer in the contract
3:06 – It’s important to have good assignment language
5:25 – Get the legal description of the property and the address of the property in the contract
5:45 – List personal property in the contract
6:20 – Include the purchase price in the contract
6:28 – Include the earnest money deposit amount and date it’s due in the contract
6:46 – Include the right of entry in the contract
6:54 – Include language about policies and find out what objections you can have
7:50 – Reference the condition of the property
8:10 – Put in a clause about the risk of loss
8:54 – Your due diligence clock shouldn’t start until you have everything from the seller
10:17 – Include an extension fee in the contract to buy more time
11:10 – Mention seller required actions such as terminating any vendors contracted to the seller
14:59 – You need prorations at closing
15:23 – Include seller reps and warranties
16:37 – Include buyers reps and warranties
16:50 – Include a buyers right to terminate
18:06 – Make sure you have damage or default
19:00 – Have a closing date in the contract
19:27 – Include the buyer contact details
19:51 – Include a closing contingency for if you need an escape
20:37 – Have a buyer/seller cost breakdown
21:29 – If you have a broker, you need to include broker representations
22:03 – Make sure you have survival included in the contract
22:50 – Have a 10-31 exchange included
23:35 – Include a COVID clause, for extensions
23:51 – The FERPDA provision is an extra form to fill out if you’re from a foreign country
24:16 – There are boiler plate provisions which are usually included
25:07 – Have a signature block, obviously
25:09 – Include some exhibits like an aerial map
26:11 – Finally, have an allocation to purchase price
Resources:
Purchase and Sale Contract – Key Terms
Ep. 33 | Property Tax Appeals
Ep. 32 | Underwriting Property Taxes
Ep. 31 | 10 Things To Include In Your Zoning Letter
Ep. 30 | Title Commitment and Surveys 101 – Part 2 of 2
Ep. 29 | Title Commitment and Surveys 101 – Part 1 of 2
Ep. 28 | 10 Land Mines to Avoid in Due Diligence
Ep. 27 | 30 Seller Deliverables to Request for Your Due Diligence
Ep. 25 | Underwriting Assumptions for Your P and L and Day 1 Budget
Ep. 24 | 11 Steps to Consider When Evaluating a Real Estate Purchase
Ep. 23 | Property Tax Incentives
Ep. 22 | Industrial Real Estate
Ep. 21 | Historic Preservation Tax Credits
Ep. 20 | Restaurant Investments
Ep. 19 | Oil & Gas Investing
Ep. 18 | Investing in Farms
Ep. 17 | NNN Leases: What Commercial Real Estate Investors Should Know
Ep. 16 | Retail Development
Ep. 15 | Single Family Residential Development Purchase and Sale Agreements (PSAs)
Ep. 14 | A Deeper Dive into Single-Family Residential Development
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