By: Danielle Greco, Esq.
ATTENTION BROKERS! Help us help you (and our mutual client) get into contract quicker by making sure that the Deal Sheet provides all relevant information the attorneys need to draft the contract.
- Buyers & Sellers – be sure to ask whether the buyer or seller is buying or selling in anything other than their individual name(s). Ask whether they own or will purchase in the name of an LLC or a Trust.
- Sales Price – make sure it is accurate. This includes listing any seller’s concession or credit to buyer that will be given.
- Down Payment – never assume the buyer is putting the standard amount of twenty percent (20%) down (ten percent (10%) at contract signing) – whether financing or not. Attorneys often discover their buyer clients desire to put a lesser amount down for the Down Payment when the buyer client reviews the contract for the first time (after at least some contract negotiation occurs).
- Closing Date – “ASAP” should not be put here. Speak to your buyers and sellers about a realistic closing date. For example, if it is an all-cash deal with no Coop/Condo Board involved we understand why you may put “ASAP” but that’s not helpful in drafting the contract as those are not the only factors that impact closing. “ASAP” is typically converted to “on or about 30 days from the date of Contract”, which may or may not be a realistic closing date for the parties.
- Contingencies – be specific! We often times just simply see the word “yes” next to “Financing Contingency” or “Mortgage Contingency”. If there is a mortgage contingency, write that and include the key information such as the loan amount or financing percentage, if it is an FHA or VA loan, and whether an appraisal is waived.
- Inspections – let attorneys know if the buyer is performing an inspection prior to contract signing or whether an inspection was already completed (if the inspection was completed, send the buyer’s attorney a copy of the inspection report).
- Personal Property – what’s staying and what’s going? If the Seller is taking the fancy chandelier over the dining room table, then make sure the Deal Sheet states exactly that, so attorneys can make sure the removal of such items are listed in the contract.
- Flip Tax or other contribution – List the flip tax or contribution amount with the appropriate paying party rather than just saying “yes”.
- Managing Agent information – Provide both the property manager’s name and someone from management’s office that assists in processing attorney due diligence. Tracking down the correct person at a managing agent’s office to assist with questionnaires and board minutes eats up more time than you’d think! If the building doesn’t have a management company because they are self-run or self-managed, then be sure to include that as a note and provide a contact person for due diligence.
- Other deal terms or useful information – if there is anything unique or additional to the transaction let the attorneys know in the Deal Sheet that way it doesn’t come up at the last minute.
- Examples include an appraisal floor, repairs to be performed by the seller, whether the buyer’s lease is up by a certain date, whether the buyer needs to sell a property to buy, whether the seller needs to find a new place to live before closing on their sale, etc.
The bottom line is that the more relevant and specific information provided to the attorneys, the quicker we can get into contract!