Using the State approved contract

[Michael Gee]

Hi all,

The real estate commission approved contract in my state is 16 pages long and in my opinion, full of irrelevant information needed to lock up a property to wholesale, assign, and use when an investor is using all cash to purchase the property. Also I feel like the seller you are purchasing the property from could become confused by such complexity of terms and provisions that are irrelevant when doing a simple purchase agreement when not using a broker or originating a loan.

I haven't used the state approved contract to wholesale deals but I hear people say to use it because the state recognizes it and will protect you when filled out correctly. The kicker is, I would have to place "N/A" on many terms that are not applicable, which really cloud the terms on the contract that are applicable.

Do investors really use a 15+ state approved contract for a simple purchase agreement with sellers? It seems like the safe route to go but I also feel that a simple 2 page agreement would work also, considering all terms and provisions apply. Simplicity is key right?

[Mary B.]

@Michael Gee I understand a 16 page document is quite lengthy and you may not be able to omit every paragraph that doesn't apply(2 out of 5 sentences may apply) but if you can make it a 12 page doc by excluding those paragraphs that are absolutely inapplicable that may help. If you do the amendment via software and save the changes it will help time wise for the next deal so you won't have to amend the document each and every time you want to make an offer to purchase....

Kudos,

Mary