THE 'BINDER' SOMETIMES BOOMERANGS
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This description is not legal advice, and you do have a period of time after you enter into the binder contract to have an attorney review it, and cancel without penalty if the attorney does not approve it. There are important differences, and this description is of our form. The description below will make more sense if you print a copy of the binder form to look at: Once our binder contract is signed by both parties, and the attorney approval time expires, the seller has an obligation to sell and not accept other offers, even if they are higherwhile the buyer has the option to buy, but can receive a full refund of the deposit if the inspections are unsatisfactory.
The first section of the binder contract specifies the buyer and seller, and describes the property being sold.
Any "non-real estate items" to be included are listed. This refers to things that are not permanently attached to property, such as a refrigerator or washing machine. The line between what is part of the real estate and what is not is not always clear, so if there are any items of importance that might binder real estate term be considered part of the real estate they should be included here.
The "on or about" date for additional deposit is a few days after the inspection period, three weeks or so after the contract is signed. The additional deposit is made at the time this more detailed contract is executed. The mortgage amount you may need is specified in the binder contract.
Whatever the amount you put down, you have the option of binder real estate term without a mortgage or with a smaller mortgage. Of course, the smaller your mortgage needs, the stronger your offer may appear.
The closing date is typically on or about 6 to 8 weeks after the binder contract, allowing time for both inspections and the obtaining of a mortgage commitment. The term "on or about" allows for flexibility for either the buyer or the seller -- either may delay the closing for a reasonable time if they need to.
Binder real estate term can be as much as a few weeks. Next, there is a list of contingencies that allow you to receive a refund of your deposit if not they are not satisfied. The binder contract specifies that it is valid if faxed, and valid if signed in counterpart. The latter means that if one party signs the binder contract, and another party signs an identical copy of that contract, the copies together are valid as if the parties have signed the same document.
This is useful, for example, where there are multiple sellers in different parts of the world: It is best to follow the customs in filling out a binder, binder real estate term there is a compelling reason to vary from them.
Questions about this often arise; "Do I have the option of making binder real estate term deposit amounts smaller? The answer is yes, you can ask for those things. The down side is, usually they make your offer substantially weaker, you are less likely to get an acceptance, and much less likely to get an acceptance at the best price. In the case of offering a smaller deposit, the seller may question whether you have the wherewithal to complete the purchase.
If a longer than necessary inspection period is requested, the seller must factor the risk of keeping the property binder real estate term the market that long, with no guarantee of a sale. Some general comments, based on our experience.