Real Estate Ch. 8
Four Key Part of a Purchase Contract
1. Earnest Money Deposit
2. Buyer's offer to purchase
3. Acceptance of offer by seller
4. provisions for payment of brokerage commission
Earnest Money Deposit
A sort of down payment showing seller's intention of buying the real estate
"Time is of the Essence"
Time limits set by the contract must e faithfully observed or the contract is voidable by the non defaulting party
Assures that purchaser may terminate contract without loss when it appears that the agreed purchase price may be significantly above the appraised value.
Riders / Addendums / Attachments
Any addition annexed to a document and made a part of the document by reference.
To hold a deal together until a more formal purchase contract can be drawn by an attorney and signed by the buyer and seller
Contract used when buyer doesn't have funds. Buyer owns property, but seller holds title until buyer pays additional funds.
Seller holds naked title, while buyer takes equitable title of the property