Contract confliction - Posted by Eric

Posted by JohnBoy on March 04, 2002 at 10:29:36:

The most I ever put up as earnest money is $100 whether I’m dealing with the seller directly or a realtor involved. Although I rarely ever get involved when realtors have a listing, but when I do I only put up $100. So I’m not concerned about who holds the earnest money.

Now if I was to put up more then I would insist on using MY title company or attorney to hold any earnest money. Otherwise no deal, with the exception of knowing it was a deal to good to pass up and I had every intention of closing it on my end. Then what difference would it make. If I had doubts or needed to have a contingency to back out because I would be needing to find another buyer to flip to or something, then I would require using my Title Company or attorney to hold any deposits.

Bottom line. I’M the buyer and they need ME more than I need them! If they want the opportunity to get MORE business from me in the future then they learn to play by my rules early on in the game or they don’t get anything, period! He who holds all the gold makes all the rules! When I’m the one buying I hold all the gold! They can’t sell without a buyer!

As far as only putting up a $100 as earnest money, most agents will tell you they need at least $500 - $1000. BS! Sorry, but the truth be known they don’t NEED anything! An earnest money deposit isn’t even required by law to make a contract binding. This is just realtor mentality. But I just tell them that I submit over a 100 offers per month and if I had to put up $500 - $1000 in earnest money on every offer I would have to tie up $50k - $100k a month in just earnest money deposits! Ain’t gonna happen! They are required by law to submit ALL offers. If they refuse to submit your offer then go around them and contact the seller directly! Inform them that you wanted to make an offer but their agent is refusing to submit it to them for some reason and you just wanted to make sure they had the opportunity of considering it before moving on to something else.

As far what your addendum would say, a lot of agents don’t even read it over that closely! They seem to be happy that you used their forms and don’t pay much attention to what the addendum says. It just depends on the agent.

Contract confliction - Posted by Eric

Posted by Eric on March 02, 2002 at 15:26:35:

When purchasing property does the situation often arise were each party has their own contract that they want to use? If so, what do you do? when buying through a realtor how is that situation different. Realtor’s are pretty pushy and unpatient with us right? If buying from owner does this situation ever happen? Thanks for the help. -Eric

Re: Contract confliction - Posted by JohnBoy

Posted by JohnBoy on March 02, 2002 at 21:35:46:

Never had a problem with an owner selling. Realtors will sometimes require their forms to be used. Just change your standard purchase contract heading to say “ADDENDUM”. Fill that out as you would your purchase agreement and just attach it to any purchase contract used by someone else. Your addendum will override anything duplicate in the purchase contract and include anything in addition to that that you would normally include in your contracts. Realtors don’t usually have a problem with that. They just seemed to be concerned that their forms are being used as the purchase agreement. Whatever makes them happy! I just attach my addendum which is MY purchase agreement only with the heading changed to read “ADDENDUM” instead of “Real Estate Purchase Agreement”.

Write on the purchase agreement, “SUBJECT TO ATTACHED ADDENDUM”

Re: Contract confliction - Posted by Eric

Posted by Eric on March 02, 2002 at 22:11:16:

Realtor’s like to use their title/escrow company to hold the earnest money. My contract would insist on using my title/escrow company to hold the money so if I defaulted the realtor would have a more difficult time taking my money from me. If I attach an addendum that specifies this wouldn’t the realtor object? How would I handle this? Thanks. -Eric