Real Estate Investment

Archive for the ‘Real Estate Contracts’ Category

How is a Real Estate contract accepted?

Real Estate contracts must be accepted in writing. Once a Real Estate contract is accepted, the document becomes the instrument for handling the sale of the property. It serves as a guide for the sale of property.

The transfer agent will distribute funds, transfer ownership (title), deal with outstanding Mortgages, etc according to the Real Estate contract. The agreement also indicate the rights of the parties under contract.

Types of Real Estate contracts

There are many Real Estate contracts and agreements. Examples are:

• lease option contracts
• options contracts
• purchase and sale contract
• sale and purchase contract
• rental agreements
• wraparound Mortgages
• and many more…

You can either do the contract yourself. Samples of what each contract looks like can be found at most office supply companies. You can also use software to automate the process. You should have a clear understanding of each type of Real Estate contract before you start your Real Estate investment.

Before you sign a Real Estate contract, you should talk to a lawyer about making sure that assignment of right is possible on the Real Estate contract you are using. While most Real Estate contracts allow assignments, some do not.

What are Real Estate assignments?

Real Estate assignments are transfers of rights and/or duties under the terms of the Real Estate contracts. A Real Estate assignment allows buyer or investor to sell the Real Estate contract to other parties for cash.

How to tell if an assignment is allowed in a Real Estate contract? Whenever you see “and/or assigns” on a Real Estate contract, the contract is assignable. If you include the phrase “and/or assigns” after your name on a purchase offer or a Real Estate contract, you can assign your right to purchase the Real Estate investment to another party.

Sometimes obligations are assigned using the Real Estate assignments to a third party but the original purchaser is still liable if the third party fails to perform his/her duty according to the Real Estate contract. To avoid this liability, the Real Estate contract must specifically release the original purchaser from all liabilities resulting from the assignments.

The need for Real Estate assignments

Using “and/or assigns” in a Real Estate contract is a technique to generate profit from Real Estate investment without actually investing any money. Laws vary by state, so you should make sure that you know what laws apply to your state before you start Real Estate investing.