The Real Estate Diversification Podcast
Business:Investing
Ep. 26 | 30+ Provisions for Effective Purchase & Sale Contracts – Including 4 That Will Save Or Make You Money
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
Create your
podcast in
minutes
It is Free