"Subject To" Purchase & Sale Agreement

[Steve Crounse]

Does anyone have a template to use to create a P&S doc when you're buying a property subject to? Or a doc they have created & given a title company on a subject to deal?

Thanks!

[Shanker Nair]

Hi Steve,

I am certianly no expert but I believe the P&S agreement on a Sub 2 is not necessarily entirely different to a standard P&S agreement but I have seen Sub 2 versions to have verbiage such as the excerpt in the sample below, in addition to all the other standard clauses/ sections - as with anything, I would suggest you run this past your attorney to confirm it works in your state/ for your needs. Hope this helps.

==========================SAMPLE EXCERPT ONLY=====================

This Agreement entered into on the_______day of ___________ , 20_______ by and between, _____________________ and or their assignee(s), herein after referred to as the "Buyer(s)", and _____________________, Herein after referred to as the "Seller(s) ".

Seller agrees to sell and buyer agrees to buy the following described real property together with all improvements and fixtures and the personal property described below:

Property Address______________________________________________________________________________________

Legal description: ____________________________________________________________________________________________________________________________________________________________________________________________________________

County _____________________________________________________________.

Personal property included: ____________________________________________________________________

Earnest Money Deposit	$______________________
Cash To Seller At Closing	$______________________
Existing Loans & Liens	$______________________
New Loan To Seller At Closing	$______________________
Purchase Price	$______________________

The purchase price to be paid as follows:

1. EARNEST MONEY to be deposited with licensed title company or attorney within 48 hours of acceptance by seller. The buyer will take title subject to the following loans on terms agreeable to the buyer:

A. Loan to _______________________________________ Balance $____________________________
Interest rate: _________ %, Monthly Payment $___________________ Loan Number _____________
Date last payment made____________________________ Loan current through _________________

B. Loan to ________________________________________ Balance $___________________________
Interest rate: _________ %, Monthly Payment $___________________ Loan Number _____________
Date last payment made____________________________ Loan current through _________________

Other liens: ________________________________________________________________________________________________________________________________________

Any overstatement in the above loan and lien amounts will be added to note to seller. Any understatement will be deducted from balance due at close.

========================SAMPLE EXCERPT ONLY========================

[Steve Crounse]

Shanker,

Great.  Thanks.  Caveats noted.

[Darrell Shepherd]

Shoot me an email address and Ill shoot you the one I use. I think it's Lou Brown's from back in the day with a few changes. Might be something better out there, prob been using it for 14 years.

Very similar to the above, but has some different verbiage. I use it on all my purchases that aren't done through agents. Seems to work. I just carry them with me and fill them out on the fly if I get an offer accepted.

[Steve Crounse]

Darrell,

Please send it to [email protected].

Thanks a lot.

[Michael Quarles]

@Steve Crounse 

IMHO it is very different... You can see the agreement I use which has section to check if buying Sub2 at this link. Link

[Steve Crounse]

Micheal,

That doc is very helpful.   Thanks.

[Shanker Nair]

@Michael Quarles  Thanks Michael for sharing your document with us.

[Christel Njonjo]

@Michael Q. Thank you for sharing the document. just what I needed.

[Tre' Watson]

Originally posted by @Darrell Shepherd:

Shoot me an email address and Ill shoot you the one I use. I think it's Lou Brown's from back in the day with a few changes. Might be something better out there, prob been using it for 14 years.

Very similar to the above, but has some different verbiage. I use it on all my purchases that aren't done through agents. Seems to work. I just carry them with me and fill them out on the fly if I get an offer accepted.

 [email protected]. Can you send me a sample of one you use also. Thanks!

[Antonio Myers]

Hey Michael, thanks so much for sharing the agreement you use for sub 2 almost a year ago now!  I like it.  Concise, thorough and easy to read. I was wondering if you would share the agreement you use when SELLING sub2 ?

Also, is there a clause or addendum you use addressing the possibility of the property not appraising for enough when your buyer goes to refi to pay off a balloon and how the parties will continue?

Anybody else out there have any ideas, thoughts or agreements to share on this.

Thank you in advance for your consideration!

[Antonio Myers]

@Michael Quarles

 Hi Michael please see my post above. Thanks

[Erica Swallow]

Originally posted by @Michael Quarles

Hey Michael! Your link no longer works. Do you have another link, or could you DM me your Sub2 agreement? Would love to see it. (Of course, I'll work with my attorney to review and draft to my own needs—but I'm the type who loves to see lots of examples while drafting!)

[John Menton]

Quote from @Erica Swallow:

Originally posted by @Michael Quarles:

@Steve Crounse 

IMHO it is very different... You can see the agreement I use which has section to check if buying Sub2 at this link. Link

Hey Michael! Your link no longer works. Do you have another link, or could you DM me your Sub2 agreement? Would love to see it. (Of course, I'll work with my attorney to review and draft to my own needs—but I'm the type who loves to see lots of examples while drafting!)

 @Erica Swallow Did you ever find a MA sub 2 agreement? 

[Gabe Mcmullen]

Quote from @Michael Quarles:

@Steve Crounse 

IMHO it is very different... You can see the agreement I use which has section to check if buying Sub2 at this link. Link

 Hey Michael, 

Would love to get a copy of that document if you've still got it! 

Cheers!

Gabe

[Solomon Shaikh]

Does anyone still have the sample contract?

[Ventress Wilson]

Quote from @Darrell Shepherd:

Shoot me an email address and Ill shoot you the one I use. I think it's Lou Brown's from back in the day with a few changes. Might be something better out there, prob been using it for 14 years. Very similar to the above, but has some different verbiage. I use it on all my purchases that aren't done through agents. Seems to work. I just carry them with me and fill them out on the fly if I get an offer accepted.