A little confused about this purchase agreement contract

[Jeff Ashachik]

So I downloaded a purchase agreement from the BiggerPockets File Place but I have a question about the pricing section, this is what it looks like:

SALE PRICE:                $_______

SUBJECT TO: ______  $_______

EQUITY:                       $_______

What do the "subject to" and "equity" lines mean and what needs to go there? Why isn't "sale price" enough?

thanks!

[Wayne Brooks]

This is obviously for a sub2 deal.  The "sub2" is the balance of the loan, and the "equity" is the cash you are bringing to the table, to equal the sales price.

[Jeff Ashachik]

thanks, @Wayne Brooks. If the "subject to" is the balance of the existing loan, what's the blank space for where something should be written?

I realize this is extremely basic and I appreciate your help.

[Steve Vaughan]

The space after 'subject to' is to add more detail.  For example: 1st mortgage of $100k, 2nd mortgage of $30k.  

With my sub2 contracts, I get very specific in the contract later about what exactly is being taken over.  The date, lender, approx balance, recording numbers, etc.  

It's not all that common that Jack or Jill homeowner leaves their loan in place for a buyer, but it does happen @Jeff Ashachik.  

Also the 'equity' portion to me is just the difference between the PP and the sub2.  It does not all have to be your DP, cash you bring to the table.  Installments can be made for at least a portion of that as well, depending on your seller.  

[Jeff Ashachik]

Very well put, @Steve Vaughan. Thanks for clearing that up.

[Account Closed]

where did you find the purchase agreement here on BP? I'm having a hard time finding it myself. Please help!