First Deal, First Contract, Need Advice

Hi all,
If this belongs in the legal forum, I apologize.
I will be meeting with the seller to sign the contract. He's asking for a deposit of 5k. Should it state in the contract
that it's refundable? Let's say that during the inspection there is something terribly wrong with the property (something I didn't catch) and I want to back out.
What key items should I be looking for, since it's a contract that he's drawn up, etc. (It's a 2 fam house that I'll be using for renting purposes)
Thanks
-Ariel

Comments(5)

  • myfrogger24th November, 2003

    If you are unfamilar with the legal language in a contract I would do one of two things:
    1. Have an attorney review the contract before signing
    2. Insist on using the local board of realtors form OR the attorney state supplied form (in Iowa called Iowadocs)

  • nebulousd24th November, 2003

    Or use your own...

  • InActive_Account24th November, 2003

    You make the deposit to a disinterested third party. Ex, Title company,escrow co. or attorney.

  • rickomarsh24th November, 2003

    sammyvegas said it right, do not make the check out to the seller!!

  • yehoshua3024th November, 2003

    Thank you all for your thoughts!
    -Ariel

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