Sales Contract
I am putting together a deal and need qadvice from one of you experts out there.
I am going to have the owner take out the loan on his home, then I make the payments. I also need to add addendums. Now my question is 2 fold/
What kind of contract do i need for this? A sales contract? with addendums added? or something else? Assumable loan contract? Where would I get one of those for free?
Second what kind of deed would I ask for? I do not want to do a lease option I want to own the property and just assume the loan right?
JnJ
[addsig]
As for forms, I would get the residential agreement of sale and addenda forms that RE agents use in your area. As for the contents of the contract, if I understand you correctly, what I think you want to do here is do a straight purchase contingent on the seller obtaining financing that you can assume. So I would modify the mortgage contingency provisions to specify amount of loan, interest rate, term of loan, LTV, and that you must be able to assume the loan. I would also put in a date by which the assumable loan is to be secured by the seller with written evidence from the lender that you can assume it. If the LTV is important here, you might want to add a provision that the appraised value of the property would be no less than X (purchase price).
As for type of deed, don't know the nomenclature in your state. In PA, typically, buyers get deed of special warranty--seller warrants that during the time he owned the property, there were no liens or defects.
While Nancy makes it sound easy, I'd advise anybody who's not used to preparing P&S Agreements, to have some pro help on one like this.
Two places you might go for this...one is a licensed & experienced agent in that town, with whom you'd make a written contract, to pay him or her a flat fee for doing the P&S for you...maybe $100-250, or if none can be found, then a local lawyer, who probably would charge no more than that.
But ask upfront about their fees, so the amount of their bill is no surprise.
JohnMerchant is, of course, correct about your getting qualified assistance. You want to make sure that the provisions are drafted so that they clearly indicate what you and the seller contemplate.