We Specialize in the Following
REAL ESTATE PURCHASE AGREEMENT
STANDARD PURCHASE AGREEMENT
A sales and purchase agreement (SPA) is a legal contract that obligates a buyer to buy and a seller to sell a product or service. SPAs are found in all types of businesses but are most often associated with real estate deals as a way of finalizing the interest of both parties before closing the deal. An SPA serves as a basis for a transaction to take place, providing a framework of how the transaction will proceed, what is included in the transaction, and, if necessary, what is excluded from the sale. It allows the buyer and seller of a particular asset to negotiate, and ultimately agree upon, a proper price. While not required for every transaction, SPAs are often used for large single purchases or frequent purchases across a specified amount of time.
LEASE TO PURCHASE AGREEMENT
A Lease-Purchase Contract, also known as a Lease Purchase Agreement, is the heart of rent-to-own properties. It combines elements of a traditional rental agreement with an exclusive right of first refusal option for later purchase on the home. It is a shortened name for Lease with Option to Purchase Contract. In a standard Lease-Purchase Contract, the two parties agree to a lease period during which rent is paid and the terms of the sale at the end of the lease period, including sale price. The contract is structured in two parts, one representing the lease term and the other a contract of sale. The lease agreement expounds upon what responsibilities the tenant/buyer and landlord/seller undertake during the course of the lease. This contract will also include the option fee and how much of the monthly payment will be credited to the down-payment for the purchase of the home at the end of the lease.
The length of the lease and the amount of monthly rent are documented and cannot be changed. This ensures that the landlord cannot arbitrarily just raise the rent and the tenant cannot just leave the property whenever they want without repercussion.
The lease agreement is effective for the specific time stated in the agreement and is then considered ended. If the tenants wish to remain in the property, both parties must enter into a new lease agreement.
A landlord is not obligated to renew the terms of the old lease and is free to change terms and rental amounts if desired. For this reason, some tenants prefer to sign a longer-term lease if the monthly rent is very reasonable and in an area where rents are likely to increase during the term of the lease.
OWNER/SELLER FINANCE AGREEMENT
When a property buyer finances the purchase directly through the person or entity selling it. This often occurs when the prospective buyer cannot obtain funding through a conventional mortgage lender, or is unwilling to pay the prevailing market interest rates. The seller may agree to owner financing if he or she is having difficulty selling the property. Owner financing may only cover part of the purchase price, with a smaller bank loan making up the difference. Also known as "creative financing" or "seller financing".
Wholesaling real estate involves an investor buying a property or getting a property under contract and then selling the house or assigning the contract as quickly as possible. The investor may wholesale the property to another investor who will then fix up the property and rent it or flip it. The key to a successful wholesale deal is finding properties cheap enough that there's room for the end buyer to make a profit.
You have to be very careful when you assign contracts on any residential or commercial property. Some states consider finding a buyer and seller to be performing the duties of a real estate agent. Even if you have the property under contract, it may be considered acting as a real estate agent if you assign that contract. If you are placing signs in the yard, advertising on Craigslist or marketing with flyers without owning the property, it could be considered practicing real estate without a license. Check with your state laws before performing any of these activities!
A rental agreement usually last for 12 to 18 months with a landlord option to raise the rent after contract is due. A rental agreement can also differs from a lease agreement in that it is not a long-term contract and usually occurs on a month-to-month basis. This month-to-month rental agreement expires and then renews each month upon agreement of the parties involved.
All the same stipulations are included in a month-to-month lease as are in a standard lease; however, either the tenant or the landlord can alter the terms of the agreement at the end of each month. The landlord has the option to raise the rent or request that the tenant quit the premises without violating the rental agreement. A landlord must give a proper 30-day notice to quit, however, prior to requesting the tenant leaves the property.