Do you need help drafting real estate contracts? If so, you’ve come to the right place. As real estate investors in Golden Valley MN, we regularly put together housing contracts that meet both state and federal requirements. This is the case because whenever there is a real estate deal at hand, it is necessary to draft a contract, which is something that you’ll soon discover if you’ve decided to sell a house. As such, we have intimate knowledge of what it takes to draft a real estate contract. And that is what we would like to share with you today.
Before you enter into any real estate transaction or agreement, you’ll want to have a full grasp of what the contract you will be signing stipulates. As such, while real estate contracts may seem intimidating, taking the time to familiarize yourself with the terminology you’ll encounter is well worth the effort. This knowledge will help you feel confident in any real estate transaction you take part in, as well as assist you in ensuring that all the most important must-have conditions are met in your real estate contract.
Below, we are going to help you with all of this by discussing all of the most important details that you need to know about real estate contracts in Golden Valley MN. For more information on the subject of real estate paperwork, you may also want to read another one of our blogs that expands on 7 Documents You Need While Selling Your House in Saint Paul MN.
All You Need to Know About Real Estate Contract in Golden Valley MN
Read on to explore our guide to real estate contracts that will help you when buying or selling houses in Golden Valley MN.
“Subject To”
Selling property as “subject to” an existing loan is a great way to write your home sale contract when selling your house in Golden Valley MN. This clause in a real estate contract allows a distressed seller, who may otherwise lose the property, to assign payments and the right of residency to the buyer. However, ownership of the property will remain with the seller, who will still be responsible for the original mortgage with their lender. The buyer is under no obligation to the lender, so should the worst happen and they fail to make the payments, regrettably, it is still possible for the property to end up in foreclosure.
Purchase Agreements
A purchase agreement is the most common type of real estate contract in Golden Valley MN. This contract represents a fairly simple and straightforward sale between a seller and buyer. As such, it contains all the elements of a legally binding purchase agreement. However, the type of purchase agreement contract that you will come across may vary. If you are working with an agent, it will likely be a “state or association” contract. If the sale is directly between the seller and the buyer, then the general purchase agreement is typically used.
Lease Agreements
If your plans involve becoming a landlord, your real estate contract is sure to involve a lease agreement. This contract guarantees a tenant the use of your property for a specified period, while at the same time providing you with a guaranteed monthly income. In most cases, these contracts will be carefully laid out in order to avoid any confusion or misunderstanding, as well as to clearly outline what exactly is expected from either party involved. As such, when you’re drafting your lease agreement, you should take note of this. In addition, you’ll want to be certain that you’re meeting all local, state, and federal guidelines.
Power of Attorney
While not commonly thought of, the power of attorney can be extremely useful in real estate contracts. Through the use of the power of attorney, you can convey your rights to conduct business to someone who is entrusted with your finances, an attorney, or an agent. They come into play when the owner is either not available to conduct business or is incapacitated.
Rent to Own
Selling your house through a rent-to-own contract is another great option for home sellers in Golden Valley. As the seller, you’ll collect an initial deposit, monthly rent as well as a final payment, all while the property remains in your name. With this specific contractual agreement, the buyer is given the ability to try the house out for a specified time period. This is until your buyer is finally able to qualify for a mortgage loan, which can open your buyer market up to a larger number of people.
Do not let intimidating contracts stop you from succeeding with your home sale in Golden Valley MN. Simply reach out to our company, and we’ll walk you through everything you need to know about real estate contracts in Golden Valley MN. We buy houses in Golden Valley MN. At FastPath Home Buyers, we take the time to listen to your dreams and help you make plans, then update those plans as your life and goals change over time. Or if you’d rather avoid working with buyers from the MLS, we could even offer to purchase your property directly.
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