FREE Real Estate Contract and How To Fill It Out (Tutorial)

all right what’s going on everybody so
today’s video I’m gonna be showing you step by step how to fill out a real
estate sales contract but not only that if you want a free copy of the exact
contract that I use for buying properties please smash that like button
but also go down to the link below to my website where you can download the
contract for free so that being said let’s get started and
also full disclosure here I’m not a lawyer this is not legal advice and you
should a hundred percent run any contract through your attorney so let’s
get started so here we have the real estate sales contract and this is only
two or three pages so I like to keep my contracts simple sometimes you’ll see
contracts that are like 30 pages long and that’s just gonna that’s gonna
confuse you that’s going to confuse the seller it’s best to keep it simple so
here we go you know legal and binding agreements
you know seller and buyer so for this I like to do things electronically
typically so you know seller I’m gonna put will just put like Joe seller you
put their name and you can mess with the font you can make it a little bit bigger
if you want for this you know for purchaser you’d either put your LLC you
know we buy houses see or you can just put your name whatever whatever you
prefer and sometimes you can even change it you know if you put your name but
then you want to move it into an LLC that that’s not typically a big deal
alright so real property to be purchased you would put the address obviously 1 2
3 4 Main Street will say do you see and keep in mind when I’m filling out this
contract if I’m purchasing from a seller I like to have pretty much everything
filled out so that they only really need to put like their initial their
signature of the date so that is pretty much like 99% done you don’t want to
have the seller doing too much changing with the contract so included
in sales price I’m not going to I’m just I typically might just put in a you know
you find these properties as is and this is an investor type of
contract this is not your standard real estate agent contract so this is me just
purchasing it as is no realtor Commission’s closing quickly hassle-free
type of sale so then we come down the purchase price we’ll just say it’s two
hundred thousand actually good deal no matter where you are in the DC area two
hundred thousand ok closing dates so I like to put on or earlier so it leaves
it open because sometimes I’ll tell a seller I say look we’ll put in 30 days
but we’ll try to get a close sooner I can’t guarantee but we’ll do our best to
get a close sooner so on you know we’ll put like just a random date so on or
before deposit earn it this is the earnest money deposit so anytime you go
into contract you need to put some type of earnest money deposit you can put $1
it’s not probably wouldn’t be taken too seriously and I’ve seen some people put
as much as like $50,000 or even even more than that for a nurse money deposit
I said we just put $500 every now then the seller might say hey can you put a
little bit more than that so 500 is fine I just had that written into the
contract and you typically have five days from going under contract to put it
in there and if you don’t do it I you know have in there that the seller has
to give you written notice for you to do it and then there’s another seven-day
period so you have a little bit of time but it’s best to get that done as soon
as possible condition of premises this is basically just saying that you have
the contract and as this condition you know if something drastic were to happen
between now and closing that would obviously change things so I have this
inspection contingency where it basically says contracts contingent upon
buyers partners inspection and approval at any time before closing
so I’ll typically have that in there and I’ve only had to use it like basically
once or twice next up we have a lead paint addendum and you can oftentimes
just download these lead paint addendums online it’s just like a quick one-page
form orange indeed this is basically just
saying that the deed and the title can be transferred there’s no like liens and
different things like that that are going on adjustments this is basically
just saying that there’s gonna be like proration x’ and
different things like that where you know the seller is not gonna get stuck
with the entire tax bill let’s say it’s all gonna be prorated and that’s
something the title company’s going to handle so you don’t need to do that
so Maryland if you were using this contract you would just change it to
like whatever state you were buyers default if the buyer fails to comply
sellers shall be title entitled to additional deposit funds so basically
your earnest money deposits and possibly attorney fees if you were to default but
that’s why I have the inspection contingency in there which allows me to
back out for pretty much any reason so this is just risk of loss or damage and
a lot of this is like legalese so you potentially be entitled to some type of
amount if there was a fire or something like that which is you know obviously
pretty rare this license party so I just say that you know I’m a licensed real
estate broker you obviously we put something else if you were a licensed
broker or not equal housing rights fax transmission complete agreement this is
just again legalese is basically just saying this would be the complete
agreement buyer and seller acknowledge receipt of this or I forgot to do notice
notice this is basically just saying that it needs to be in writing if
there’s any type of changes and things like that buyer and seller acknowledge
receipt of a copy of this agreement upon signing the same so it’s a pretty simple
contract this is just an example contract only three pages so if you want
to do additional terms you know you could put in there you know seller to
convey table and you know you can put in different things like that and honestly
you might even want to put that up in the the top part next to the fixture
items but here’s where you can just put different different terms that that
might come about so it could be really anything and then what you would do is
you would basically just on the buyer so I would I would sign my end and then
what I would do is I would I would actually add the seller so I would say
set a signing order and then if I was sending it to like
Bob seller quit Bob at Yahoo Tom and then so I would make it very easy for
Bob the seller to just sign it date it and then once everyone signed you know
you have a ratified contract oh it’s Joe the seller not Bob the seller but you
get the point um so then you’d have a ratified contract and once you have a
ratified contract you would just send this to the title company and then they
would get the process started you would want to make your deposits and then
basically just get everything going to close on the house so that’s that’s
pretty much how you do it again I would reiterate that whatever type of contract
you try to make it as simple as possible you shouldn’t have to be a lawyer to
understand the contract you know obviously you should have a lawyer look
at your contract to make sure it’s legitimate but try to keep things as
simple as possible for the seller there’s a famous quote it says a
confused mind says no so if you’re some very lengthy contract it’s just gonna
make things a little bit trickier and more difficult and you might have to
drive somewhere with like 40 pages to go through the seller so it’s a lot easier
if you can just do it via DocuSign so I would recommend using DocuSign which is
the service that I’m using right now it’s pretty inexpensive and you know
it’s the one I use in my real estate investing business and I’ll actually put
a link below to DocuSign so you can sign up using my affiliate link I do get a
small commission but again I think I think it’s the best service out there
it’s very affordable and it’s very easy to use for for you as well as to for the
seller so check that link out and then I’ll also put a link to my website below
where you can download the exact contract that I use so between the
contract I use and DocuSign you should be pretty well set up as a real estate
investor and thanks for watching if you have any comments drop them below and
please like please share please subscribe and I will see you on the next
one all right bye

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