Hey all,
Just wondering how you structure your purchase agreements on the sell side. First, do you normally use your purchase agreement on the sell side or do you often have buyers insisting you use theirs? Second, my only real concern is how to structure it when you use a title company (and therefore have significant closing costs). The easiest thing would be to say that the buyer pays the closing costs (maybe you knock off a thousand bucks or something), that way if they back out, there is no risk to you as the seller losing money to the title/escrow company. The other route would be to split it or the seller pays, but then you’d need some language about what to do if the buyer backs out. How have you handled it in this case? Just trying to see how others have handled this.
Thanks!
Ryan
do you normally use your purchase agreement on the sell-side or do you often have buyers insisting you use theirs?
@rmiller1291 the only reason I’d ever use the other party’s template is if they’re using an agent who is insisting on using their standard Realtor form. As long as the price and terms still make sense, it doesn’t really matter which template is used, but the main benefit of using mine is that it looks simpler and less intimidating (because it is simpler and less intimidating).
The easiest thing would be to say that the buyer pays the closing costs (maybe you knock off a thousand bucks or something), that way if they back out, there is no risk to you as the seller losing money to the title/escrow company.
That could work.
The other route would be to split it or the seller pays, but then you’d need some language about what to do if the buyer backs out. How have you handled it in this case? Just trying to see how others have handled this.
That could work too.
Honestly, the closing costs (whoever pays for them) is usually a pretty small amount with most of the deals I have that end up going through a title company. It does cost more than a self-closing, but it’s not that much more relative to the amount I’m getting paid.
@retipsterseth Thanks Seth. Yea, I’m not concerned with the overall cost of closing, it’s more how to mitigate my risk in the event that the buyer drops out. I like the idea of the buyer paying them because A) they’re paying them 
and B) it’s like a form of earnest money on their end: they are invested in completing the transaction
@rmiller1291 most title companies I’ve worked with won’t require any payment if the deal doesn’t close, regardless of who is supposed to pay them… they basically just take it on the chin.
I’ve heard of some title companies who will send you a bill in this case, but ultimately, they haven’t rendered their service if the job isn’t done.
@retipsterseth interesting! I’m surprised they take the loss. Especially if they already have done the title search