Submit Offer Form Advice
My brother is planning to put in a submit offer form on a condo. Beyond the obvious commitment to the offered price, the form also asks about a payment breakdown…how much on signed contract, how much on approved mortgage, how much at closing… Any input on this? I think that I’m being thrown by the…
My brother is planning to put in a submit offer form on a condo. Beyond the obvious commitment to the offered price, the form also asks about a payment breakdown…how much on signed contract, how much on approved mortgage, how much at closing… Any input on this? I think that I’m being thrown by the 2nd field for more $$ upon approved mortgage, but he is planning on a mortgage and inspection contingency. So should it be 1/2 the downpayment on signed contract, 1/2 on approved mortgage and the balance at closing?
Also, any insights on points to include here? FYI: This is a resale, so no TCO issues etc.
Again, this is just the Submit Offer form; our attorney will be dealing with Offering Plan and Contract.
Thanks BStoners!
the sheet is to weed out idiots, which it doesn’t. 10% down on signing of contract usually, the rest is negotiable, but you would want a mortgage contingency. even still they will probably try to get language that says they can keep the downpayment if you don’t get your mortgage, which is why you need a competent attorney (local storefront joes at your own risk).
You can write whatever % (or amount) down you want on the offer form (assuming he’s putting down more than 10% required) but they’ll only require 10% of your agreed upon purchase price at contract signing like everyone said. If your bother is putting down more than 10% then he wont have to pay the extra until closing.
Non-binding agreement so the sheet is stupid…. but, I’d put 10% of total offer price on signed contract, and 10% at closing.
We’ve just been through this process (coop, though, not condo). Typically, it’s 10% down at contract signing and the balance at closing. Although I don’t think putting anything down in an offer form is binding. If you want to agree to something else at contract, you’re free to do so.
actually there was a recent ruling in court I read about you might find interesting. I guess a family tried to buy an apartment, but the breadwinner of the family lost their job and the bank withdrew their loan commitment. The buyer tried to get out of the deal and the seller decided to keep the 10% sales deposit and the judge ultimately ordered the seller to give it back. see below, maybe there is some lesson for your brother in there 🙂
http://www.realtown.com/SandyMattingly/blog/manhattan-real-estate-business/contract-litigation-goes-against-greedy-sellers
I do believe from reading this forum that offers aren’t legally binding in NY, so just be honest.
once you sign the contract, I think the standard is 10% down with whatever contingencies you mutually agree on. That means if you have a mortgage contingency you get the 10% back if you don’t get the loan (but they can keep it if you just change your mind)
good luck with it
you’re not “committed” to anything until you’re in contract. an offer is an offer, not a committment.
you’re not “committed” to anything until you’re in contract. an offer is an offer, not a committment.
I would talk to your attorney and ask them, but in my experience I have had deals with giving 10% of total purchase price at signing of contract and rest at closing. You always want a mortgage contingency.