Jon Hayes, Chad Everts, Lauren Hicks, Doug Forestal and Curt Whitesell

1. The 2014 Second Half Summit
Contracts and Terms

2. Types of Sales
-Purchase
-Lease/Purchase
-Rent to Buy
-Cash
-Seller Finance
-Option to Purchase

3. Purchase
-A seller conveys property to buyer through a deed
-Uses a Purchase Agreement to determine specific expectations
of all parties
-Usually involves exchange of money through a mortgage or
other asset
-A binding contract is required and must be maintained
throughout purchase period

4. Purchase
-A seller conveys property to buyer through a deed
-Uses a Purchase Agreement to determine specific expectations
of all parties
-Usually involves exchange of money through a mortgage or
other asset
-A binding contract is required and must be maintained
throughout purchase period

5. Rent to Buy
-Similar to a Lease/Purchase
-A seller allows a purchase to Lease property with the intent to purchase
-Determines a time to allow for buyer to close on sale ahead of time
-Monthly rent must include non refundable portion being applied to the principle
-No down payment required
-Many times used while buyer re-establishes credit or decides if they want to
buy specific property
-Used for buyers that may not qualify for sales price and want to pay down
principle before closing

6. Cash Sale
-A seller conveys property to buyer through a deed
-Uses a purchase agreement to determine buyer and seller expectations
-Do not require lender approval to settle sale
-No appraisal needed
-Many times used by investors or swift buyers to avoid lender and industry
regulations
-Purchaser takes immediate Free and Clear Title to property at settlement
-It is still encouraged to use a Title and Inspection process

7. Seller Finance
-Can be called a dozen different names
-Uses a purchase agreement to determine buyer and seller expectations
-Financing Addendum attached to describe parties financial arrangment
-Has a set settlement and closing
-Seller must hold clear title or be able to do so under current loan(JH)
-Transfer of Deed at time of closing but Seller retains a position as lien holder
-A seller typically requires an industry standard down payment and interest rate
throughout term
-Has an end date or Balloon date that seller must be taken out of transaction

8. Option to Purchase
-Not a Purchase Agreement or Sale
-Typically but not always goes with a Lease agreement
-Gives Option holder First Right of Refusal
-May or May not take property off of the market
-Holder has set amount of time to exercise Option and close sale but not required to
purchase property
-Option must be purchased and many times is non-refundable
-Is used to protect buyer from losing property but no sale is required
-Further negotiations are typically required for sale

9. Importance of Contracts
-Based on negotiated facts
-Relays party obligations and duties
-Takes all assumptions and future conflicts to a minimum
-It is our duty to understand and be familiar with contracts
-The use of an experienced Attorney is suggested when using contracts and is well
worth the small fee
-A contract is enforceable by law
-Saves you time and money if transactions are well spelled out

10. Purchase Agreement
-Line by Line
-Parties should be accurate throughout transaction
-All lines and spaces should have data or n/a
-Dates are most important to avoid default or loss of transaction
-Creates duty and obligation between all parties which is then carried out as stated
-A good Purchase Agreement is hard to contest legally
-Should always be completed, signed and maintained as one(1) document forever
-Most Realtors do not understand a full Purchase Agreement and knowing its
meaning can help you stand out as a professional

11. Addendums
-Should be used to remove contingencies and items of sale
-Many times used for personal property in sale
-Does not have to be a lender viewed document
-Overrides all previous agreements by date and when signed
-Similar to an Amendment
Amendments
-Used to make changes to the original purchase agreement as well and used
throughout a transaction
-Can only be made by parties that have signed the original agreement

12. Lender Contracts
Fill in jon!