In this Legacy Series episode of The RED Podcast, Ferd Niemann takes us through 30 plus provisions that must be in your purchase or sale contract, including 4 that will save or make you money.

HIGHLIGHTS:

0:00 – Intro
1:54 – Put the full and correct legal name of the seller in the contract
2:14 – Put the full and correct legal name of the buyer in the contract
3:06 – It’s important to have good assignment language
5:25 – Get the legal description of the property and the address of the property in the contract
5:45 – List personal property in the contract
6:20 – Include the purchase price in the contract
6:28 – Include the earnest money deposit amount and date it’s due in the contract
6:46 – Include the right of entry in the contract
6:54 – Include language about policies and find out what objections you can have
7:50 – Reference the condition of the property
8:10 – Put in a clause about the risk of loss
8:54 – Your due diligence clock shouldn’t start until you have everything from the seller
10:17 – Include an extension fee in the contract to buy more time
11:10 – Mention seller required actions such as terminating any vendors contracted to the seller
14:59 – You need prorations at closing
15:23 – Include seller reps and warranties
16:37 – Include buyers reps and warranties
16:50 – Include a buyers right to terminate
18:06 – Make sure you have damage or default
19:00 – Have a closing date in the contract
19:27 – Include the buyer contact details
19:51 – Include a closing contingency for if you need an escape
20:37 – Have a buyer/seller cost breakdown
21:29 –  If you have a broker, you need to include broker representations
22:03 – Make sure you have survival included in the contract
22:50 – Have a 10-31 exchange included
23:35 – Include a COVID clause, for extensions
23:51 – The FERPDA provision is an extra form to fill out if you’re from a foreign country
24:16 – There are boiler plate provisions which are usually included
25:07 – Have a signature block, obviously
25:09 – Include some exhibits like an aerial map
26:11 – Finally, have an allocation to purchase price

Resources:

Purchase and Sale Contract – Key Terms