Seller's Attorney Scrutinizing Contract & More

[Nick Zocher]

Hi All,

I am having an issue with my Seller's attorney making said Sellers wary of our deal. The attorney did not like that fact that my purchase agreement was not on the standard state form, and also that my earnest money was so low. 

So, my question is really two questions:

A) Has anyone else had issues getting deals done on proprietary purchase agreements which are not the official state form (C.A.R form in my case, being in California). How have you navigated this issue?

B) Has anyone else had issues with getting the sellers to feel comfortable signing when you are essentially not putting earnest money down? (I list $1, just to open escrow with a title company.)

Unfortunately for me, putting down a substantial % is not an option as I am dealing with $1M+ homes. I know that the end buyer will be using a standard state purchase agreement and will list a substantial deposit, but how do I get my sellers to feel comfortable to sign my contract with no emd before that step?

Any and all advise gladly accepted!

Thanks

Nick

[Daniel O.]

@Nick Zocher The fact that you have no skin in the game, and thus nothing to lose if you don't honor your side of a legally binding agreement, is what is raising flags for your seller. Then he looks at your purchase agreement, and it raises more flags. You have to put some skin in the game. No, it doesn't have to be 50K, but it has to be enough that the seller feels comfortable that you are not just going to tie up his property and then walk without any consequence to your wallet. 

If the shoe were on the other foot, would you sign a contract to sell your house to someone offering the kind of terms you are offering? I know I wouldn't.