Let me first state that I am not an attorney and nothing I write or say should be considered legal advice. Please contact an attorney before making any legal decisions.
When doing any type of real estate investment deal it is critical that you have quality real estate contracts. Whether you are investing in foreclosures, buying out of bankruptcy or any of the other dozens of real estate investment strategies, quality real estate contracts play an important role in your success.
Quality real estate contracts will help to ensure that you, the real estate investor, are fully protected within the confines of the law. You want real estate contracts that will protect yourself and your business to the highest degree whether you are the buyer or the seller.
If you are the buyer you want to use real estate contracts that will allow you to easily walk away from the deal if necessary while at the same time offer the stiffest penalties if your seller should decide to walk away. And the converse is true when you are the seller.
There are certain real estate contract clauses which will allow you to do this when used correctly. You can use inspection clauses, mortgage contingency clauses, appraisal clauses, default clauses…the list can go on and on. The important thing to remember when using these clauses is that you use them correctly.
You need to make sure that your “Defined Terms” are congruent throughout your real estate contracts.
You need to make sure that the contracts that you use do not conflict.
The real estate contracts that you use will directly effect the success or failure of your real estate business because they can either protect you from lawsuit or leave you open to folks who would rather sue you to get rich than work hard themselves…not to mention that your real estate contracts can determine the success or failure on a deal to deal basis.
I would recommend that you use contracts that come from one source because real estate contracts that come from one source can help to eliminate the problems above and much more.
Whether you get your contracts from your attorney, a book, a guru, or a program such as the REIFormsGenerator it is important that they come from one source and you always have your real estate contracts reviewed by an attorney in your investment state.