Example Forms « Creative Wealth Builder Club

EXAMPLE PURCHASE FORMS

ADDITIONAL FORMS CAN BE FOUND IN OUR

ADVANCED COURSES.

General Checklist For Buying Houses

Property I.D.: ________________________________________

___ Phone worksheet summary – completed with seller’s help
___ Complete Deal Analysis/Submission Spreadsheet

___ Signed contract; purchase agreement, option, or lease option agreement, and addendums

___ Comparables (comps) sold within the last 6 months, within .25 miles preferred.

___ Seller disclosure/disclaimer/addendum (i.e.: long, short, lease opt, etc)

___ Lead Paint disclosure

___ Smoke alarm disclosure

___ Closing documents

___ Current 1st trust deed and note ___2^nd ___3^rd

___ Last 2 months mortgage statements ___1^st ____ 2^nd ___3rd

___ Authorization to Release Loan Information Form

___ Last month Gas Bill ___ Last month Water/sewer bill ___Last month electric bill

___ Last HOA statement (Home Owners Association, if any)

___ Last home owners insurance statement

___ 3 Estimates of repairs from licensed contractors (if a fixer)

___ Most recent property tax statements

___ Title Report. You may start with a "lien and encumbrance" report to save money

until transaction gets more serious.

___ Signed Excise tax affidavit form (if in excise tax states)

___ IRS lien check on seller – get seller credit authorization to do so

___City lien check for sewer and water issues or other issues (title report may help)

___ Judgment check on seller (title report may help)

___ Seller’s name, DOB, SSN and signed authorization to verify information

___ Property condition checklist / disclosure signed by seller

___ Any special checklists we included in our specialty courses

If Buying “Subject To”

___ Check on any local issues relating to using a trust, ie: your state or title company may require a filing of a business trust or similar filing, and the possible required use of escrow for the transaction to ensure you don’t cloud title for re-sale later. If you prefer , you can simply deed the property directly to your company or to yourself, especially if you may be refinancing soon.
___ If using a Land trust prepare and sign: ___ Trust agreement ___Warrantee Deed ___Assignment.

___ OPTIONAL WITH TRUSTS: Bill of Sale for Beneficial interest, an a trust disclosure addendum

Otherwise, in all cases:

___ Warrantee Deed: Unto the trustee or to you or your company as applicable.

___ Due on Sale Disclosure outlining there is an underlying loan and what happens if called.

___ Special Power of Attorney signed by seller, for all business relating to the property, mortgage, or insurance.
___ Letter to banks signed by seller regarding power of attorney to managing the property and loan.

___ Letter to insurance company regarding adding you or your trustee as loss payee.

If not using a trust, it should list your company or personal name.

If Buying using Single Escrow Flip or Holding in escrow for a lease option or contract:

___ Warrantee Deed: Leave buyer name blank for now until YOUR buyer closes, if holding transaction

in escrow – See single escrow flip section.

___ Promissory Note & Deed of Trust to secure the equity and performance by the seller (usually used for

Land contract or lease option purchases).

___ If a Deed of Trust from the seller is not possible, us a Memorandum or Affidavit of Agreement to

cloud title in your favor.

___ Special Power of Attorney signed by seller – for all business relating to the property.

For Buying on a Lease Option (in addition to above):

___ Lease-Option Agreement: Single contract format when buying, in addition to a Purchase agreement.

___ Authorization to Release Information: To verify loan balances by phone or fax

___ Memorandum or Affidavit of Option: To record your option and protect your interest.

___ Lead Hazard Disclosure from Seller to You ___ Plus receive a booklet/flyer on lead hazard.

___ Preliminary Title Report or Lien and Encumbrance report

___ Performance Promissory Note & Deed of Trust (or mortgage-in mortgage states), to guarantee

and protect sellers title and performance to you.

For Buying on Option:

___ Option Agreement (buying version) or a modified Standard Purchase Agreement.

___ May use a modified purchase agreement "subject to buyer (you the investor) securing their buyer"

___ Memorandum or Affidavit of Option, to protect your interest with a recorded document, by clouding

title.

___ Pay smallest amount of option money as possible (i.e.: $10-$100)

___ OPTIONAL: Get a performance promissory note & Deed of Trust from seller to you; for protection

of your interest and payment later when you re-sell. See Single Escrow Flip section.

For Purchase or Selling on Installment Land Contract,
see that special course checklist or seek legal counsel in your area.

Post Purchase Checklist – Property Preparation

Start this the moment you get a property under contract

Property I.D.: _________________________________________________________________

___ Install your “For Sale” sign post with a flyer box.

___ Install “For sale” sign in front of property, with FLYERS which also reference your other properties,

and web site.

___ Install several “directional arrow signs” in the area, to lead buyers in.

___ Put up your separate “I buy homes” sign in the yard.

___ Transfer and set up utilities: water, electricity, gas, etc

___ Record new messages on you selling voice mail system to screen calls, then give your direct number

to call there.

___ On your web site: Post pictures and flyer, with a downloadable flyers they can print along with a map.

___ Add the house and “numbers” information to your master sales list, for easy reference.

___ Cut grass and landscape first, street appeal is the first thing to address.

___ Complete schedule of repairs and clean and stage worksheet. Do this ASAP. Time IS money here.

___ Get the proper ad running to advertise the property, and keep it running.

___ Run direct mail campaign to same zip code or get a kid to pass out flyers to neighborhood

___ Confirm 1st mailing _____number mailed 2nd mailing date on __________.

Target renters who match your houses for sale. Hopefully you started a buyer list earlier as well.

___ Compile a Voice Mail Lead Tracking Evaluation Sheet for Weekly review.

___ Prepare: spreadsheet "short cut showing buying options", plus have underlying loan information on it,

for easy reference. Keep a copy with you, your assistant, and at the property.

___ Possibly list in MLS with discount listing services, if you intend on selling faster.

___ Have all of your selling forms applicable on site as well as on your person.

___ Start a Closing Folder for the applicant, once application receipt is taken.

___ Get a second applicant lined up with a deposit, as a backup.

Standard Purchase and Purchase Option Forms

Used for buying most properties, creating options, and assigning them.

Index

AGREEMENT FOR PURCHASE & SALE OF REAL ESTATE (purchase agreement)

· Authorization to Release Information (to get title and lender info)

Purchase Agreement Addendum and Understanding (disclosure)

Affidavit and Memorandum Of

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AGREEMENT FOR PURCHASE & SALE OF REAL ESTATE

(PB rev. 01172004)

AGREEMENT dated this ___ day of _____________,200__ by and between Joe Seller AND Jane Sellerhereinafter "Seller" whose address is 123 Anywhere street, Omaha, NB 99889 and Joe Investor hereinafter "Buyer" whose address : 233 Smith street, Vancouver, WA 99008 .

1. THE PROPERTY. The parties hereby agree that Seller will sell and Buyer will buy the following property, located in and situate in the County of Multnomah, State of Oregon , known by street and address as 555 Forest street, Portland, OR 99889

more particularly described as follows (enter legal description below):

5th Block of the last piece of dirt in Portland

The sale shall also include all personal property and fixtures, ___except _x__including: refrigerator & stove

__________________________________________________________________________________________________.

Unless specifically excluded, all other items will be included, whether or not affixed to the property or structures. Seller expressly warrants that property, improvements, building or structures, the appliances, roof, plumbing, heating and/or ventilation systems are in good and working order. This clause shall survive closing of title.

2. PURCHASE PRICE. The total purchase price to be paid by Buyer will be payable as follows:

Earnest money deposit or note (see below) $ 100

Owner financing from seller (see below) _____________________________ $ 0

New loan (see below) $ 150,000

‘Subject to” existing loan(s) with __________________________________ of approx. $_________

Cash balance due at closing $_________

Total Purchase Price and/or Consideration $ 150,100

___ Sale price not to exceed acceptable existing lender payoffs, as determined by buyer.

__X_ Said price is subject to appraisal by buyer and/or agent of buyer’s choice.
___ The agreement only gives the buyer a ____ day ____exclusive / ___ non exclusive right to purchase.

3. EARNEST MONEY. The buyer’s earnest money shall be held in escrow by agent of buyer’s choice. Upon default of this agreement, seller shall retain earnest money as his sole remedy without further recourse between the parties.

4. NEW LOAN. This agreement is contingent upon buyer’s ability to obtain a new loan in the amount of $150,000. Buyer is not required to accept any loan with interest rate exceeding 8% amortized over 30 years or pay any closing costs or points exceeding $3,000. Buyer shall provide seller with written proof of a loan commitment on or before_____________, 200__.

5. SELLER FINANCING. Buyer shall execute a promissory note in the amount of $_____________. In case of default, recourse shall be against the property an there shall be no personal recourse against the borrower. As security for performance of the promissory note, buyer shall provide the seller a mortgage, deed of trust or other customary security agreement which shall be subordinate to a new or current first mortgage not to exceed $_______________.

6. EXISTING LOAN. In the event part of the purchase price is to be satisfied by buyer taking subject to existing financing, buyer shall not be required to pay fees exceeding $_____________ nor be required to show income or creditworthiness to the holder of said mortgage or deed of trust. Seller expressly agrees and understands that buyer is taking the property "subject to" such mortgages or deeds of trust, and is not expressly assuming responsibility for the underlying loans. If the actual loan balance of said loan is less than as stated herein, the purchase price shall be reduced to reflect the difference; if the actual loan balance is more than as stated herein, then buyer’s required cash payment shall be reduced accordingly. Seller agrees to waive tax and insurance escrows held by said lender or its/assigns.

Payments to begin ___________________, 200__ the month end payment for _______________, 200__

7. CLOSING. Closing will held be on or about ____________200__, at a time and place designated by buyer. Buyer shall choose the escrow, title and/or closing agent. Buyer may assign or substitute this agreement at closing for valuable consideration, seller may then close with the new buyer, with same proceeds originally agreed to going to seller.

Seller agrees to convey title by a general warranty deed. Buyer shall pay the following costs in transferring title:

[ X ] title insurance policy [ ] loan assumption [X ] transfer fee [X ] transfer taxes [ X ] recording fees [X ] title company closing, escrow and delivery charges [X ] hazard insurance premium [ ] mortgage insurance premium [ ] survey [ ] credit application.

The following Items _x__ will / ___will not be prorated at closing: [ X ] Mortgage insurance [ X ] Property taxes [ ] PMI Insurance [ ] Hazard insurance [ ] Homeowner’s association dues [ ] Rents [ ] Other ________________ (THIS DEPENDS ON IF YOU CAN GAIN SOMETHING)

The buyer may extend the closing date an additional __30___ days by paying the seller $1,000 in cash.

Buyer reserves the right to do a final "walk through" the day of closing.

8. POSSESSION. Seller shall surrender possession to the property in broom clean condition, and free of all personal items and debris on or before ______________200__ ("possession date", In the event possession is not delivered at closing, buyer shall withhold proceeds from the sale in the amount of $5,000 as security. Seller shall be liable for damages in the amount of $__________ per day for each day the property is occupied beyond the possession date.

This paragraph shall survive the closing of title.

9. INSPECTION. This agreement is subject to the final inspection and approval of the property by the buyer in writing on or before _________, 200__.

10. ACCESS. Buyer shall be entitled a key and be entitled to access to show partners, lenders, inspectors and/or contractors prior to closing. Buyer may place an appropriate sign on the property prior to closing for prospective tenants, contractors and/or assigns.

11. SECURING THIS AGREEMENT. Buyer _X_may __ may not record additional instruments necessary to secure sellers performance, protect the title, ensure and delivery of title and closing as necessary. Seller agrees to sign such documents as necessary to meet buyer’s purchasing requirements and to close more efficiently. These documents may include:

__ Deed of Trust __ Promissory note __ Other lien instruments _X__Sellers executed deed held in escrow

Other __________________________________

OTHER PROVISIONS AND CONDITIONS: See addendum or exhibit ___

_________________________________________________________________________________________

x______________________________ _____ 200_

Seller: Joe Seller

x______________________________ _____ 200_

Seller: Jane Seller

x______________________________ _____ 200_

Buyer: Joe Investor

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AGREEMENT FOR PURCHASE & SALE OF REAL ESTATE

SUBJECT TO EXAMPLE

more particularly described as follows (enter legal description below):

5th Block of the last piece of dirt in Portland

The sale shall also include all personal property and fixtures, ___except _x__including: refrigerator & stove

__________________________________________________________________________________________________.

2. PURCHASE PRICE. The total purchase price to be paid by Buyer will be payable as follows:

Earnest money deposit or note (see below) $ 100

Owner financing from seller (see below) _____________________________ $ 0

New loan (see below) $ ________

‘Subject to” existing loan(s) with FIRST AM MORTGAGE of approx. $ 160,000

Cash balance due at closing $ 10,000

Total Purchase Price and/or Consideration $ 170,100

__X_ Sale price not to exceed acceptable existing lender payoffs, as determined by buyer.

__X_ Said price is subject to appraisal by buyer and/or agent of buyer’s choice.
___ The agreement only gives the buyer a ____ day ____exclusive / ___ non exclusive right to purchase.

4. NEW LOAN. This agreement is contingent upon buyer’s ability to obtain a new loan in the amount of $____________. Buyer is not required to accept any loan with interest rate exceeding _______% amortized over _____ years or pay any closing costs or points exceeding $3,000. Buyer shall provide seller with written proof of a loan commitment on or before_____________, 200__.

6. EXISTING LOAN. In the event part of the purchase price is to be satisfied by buyer taking subject to existing financing, buyer shall not be required to pay fees exceeding $0 nor be required to show income or creditworthiness to the holder of said mortgage or deed of trust. Seller expressly agrees and understands that buyer is taking the property "subject to" such mortgages or deeds of trust, and is not expressly assuming responsibility for the underlying loans. If the actual loan balance of said loan is less than as stated herein, the purchase price shall be reduced to reflect the difference; if the actual loan balance is more than as stated herein, then buyer’s required cash payment shall be reduced accordingly. Seller agrees to waive tax and insurance escrows held by said lender or its/assigns.

Payments to begin ____YOU DECIDE________, 200__ the month end payment for _______________, 200__

Seller agrees to convey title by a general warranty deed. Buyer shall pay the following costs in transferring title:

The following Items ___ will / _X__will not be prorated at closing: [ X ] Mortgage insurance [ X ] Property taxes [ ] PMI Insurance [ ] Hazard insurance [ ] Homeowner’s association dues [ ] Rents [ ] Other ________________ (THIS DEPENDS ON IF YOU CAN GAIN SOMETHING)

The buyer may extend the closing date an additional __30___ days by paying the seller $1,000 in cash.

Buyer reserves the right to do a final "walk through" the day of closing.

This paragraph shall survive the closing of title.

9. INSPECTION. This agreement is subject to the final inspection and approval of the property by the buyer in writing on or before _________, 200__.

__ Deed of Trust __ Promissory note _X_ Other lien instruments _X__Sellers executed deed held in escrow

Other __________________________________

OTHER PROVISIONS AND CONDITIONS: See addendum or exhibit ___

_________________________________________________________________________________________

x______________________________ _____ 200_

Seller: Joe Seller

x______________________________ _____ 200_

Seller: Jane Seller

x______________________________ _____ 200_

Buyer: Joe Investor

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AGREEMENT FOR PURCHASE & SALE OF REAL ESTATE

INSTALLMENT CONTRACT EXAMPLE

more particularly described as follows (enter legal description below):

5th Block of the last piece of dirt in Portland

The sale shall also include all personal property and fixtures, ___except _x__including: refrigerator & stove

__________________________________________________________________________________________________.

2. PURCHASE PRICE. The total purchase price to be paid by Buyer will be payable as follows:

Earnest money deposit or note (see below) $ 100

Owner financing from seller (see below) _____________________________ $ 140,000

New loan (see below) $ ________

‘Subject to” existing loan(s) with FIRST AM MORTGAGE of approx. $ ________

Cash balance due at closing $ 15,000

Total Purchase Price and/or Consideration $ 155,100

__X_ Sale price not to exceed acceptable existing lender payoffs, as determined by buyer.

__X_ Said price is subject to appraisal by buyer and/or agent of buyer’s choice.
___ The agreement only gives the buyer a ____ day ____exclusive / ___ non exclusive right to purchase.

4. NEW LOAN. This agreement is contingent upon buyer’s ability to obtain a new loan in the amount of $____________. Buyer is not required to accept any loan with interest rate exceeding _______% amortized over _____ years or pay any closing costs or points exceeding $___________. Buyer shall provide seller with written proof of a loan commitment on or before_____________, 200__.

5. SELLER FINANCING. Buyer shall execute a promissory note in the amount of $140,000. In case of default, recourse shall be against the property an there shall be no personal recourse against the borrower. As security for performance of the promissory note, buyer shall provide the seller a mortgage, deed of trust or other customary security agreement which shall be subordinate to a new or current first mortgage not to exceed $125,000. SEE ADDENDUM FOR ADDITIONAL TERMS OF OWNER FINANCING

Payments to begin ____YOU DECIDE________, 200__ the month end payment for _______________, 200__

Seller agrees to convey title by a general warranty deed. Buyer shall pay the following costs in transferring title:

The buyer may extend the closing date an additional __30___ days by paying the seller $1,000 in cash.

Buyer reserves the right to do a final "walk through" the day of closing.

This paragraph shall survive the closing of title.

9. INSPECTION. This agreement is subject to the final inspection and approval of the property by the buyer in writing on or before _________, 200__.

__ Deed of Trust __ Promissory note _X_ Other lien instruments _X__Sellers executed deed held in escrow

Other __________________________________

OTHER PROVISIONS AND CONDITIONS: See addendum or exhibit ___

TERMS OF SELLER FINANCING TO BE A CONTRACT AMOUNT OF $ 140,000 AT 6% ANNUAL RATE, 30 YEAR AMORTIZATION WITH A BALLOON DATE 5 YEARS AFTER CLOSING. PAYMENT NOT TO EXCEED $839.37 P&I PER MONTH.

x______________________________ _____ 200_

Seller: Joe Seller

x______________________________ _____ 200_

Seller: Jane Seller

x______________________________ _____ 200_

Buyer: Joe Investor

Authorization to Release Information

Authorization dated this ____ day of ___________, 200__

Borrower(s): Joe Seller AND Jane Seller

Loan No.: ______________________________________

Property: 555 Forest street, Portland, OR 99889

TO: __________________________________________________________

__________________________________________________________

I/We the undersigned hereby authorize you to release information regarding the above-referenced loan to

Joe Investor and/or their agents/assigns.

This form may be duplicated in blank and or sent via facsimile transmission. This authorization is a continuation authorization for said persons to receive information about my loan, including duplicates of any notices sent to me regarding my loan.

x________________________________ DOB:___________________________

Borrower Joe Seller

SSN: ___________________________

x________________________________ DOB:___________________________

Borrower Jane Seller

SSN: ___________________________

Fax to: 360-397-1100

Purchase Agreement Addendum “____” and Understanding

REV 0117004 Applicable to Pre-Foreclosure many subject-to offers

Payoffs – $_______________

Real Equity $_______________

Is this what you WANT? Y / N

Our Solution

No repairs ? ___

Flexible ? ___ Gets you the result you need ? _____

Solve the main problems ? ___

Solve all of your problems? ___(likely not ALL)

Payments taken care of ? ___ Timely? ___

Fewer worries? ___

Vested interest ? ___

Best solution so you can move on now ? ___

Our solution/offer : ___________________________________________________________________

___________________________________________________________________________________

Seller Initials _____ _____ Asset Solutions 2100, LLC – T.J. Marrs 360-883-2296 tjmarrs@creclub.com

Grantor/Seller Joe Seller & Jane Seller

Address: 123 Anywhere street, Omaha, NB 99889

Grantee/Buyer Joe Investor

Address: 233 Smith street, Vancouver, WA 99008

After recording return to: Joe Investor

233 Smith street, Vancouver, WA 99008

Send all tax statements to: Joe Investor

233 Smith street, Vancouver, WA 99008

_____________________________________________________

STATE OF Oregon
COUNTY OF Multnomah

I certify that within instrument ws received for record on ____________________________, 200__ at _________ o’clock ___M., and recorded in book/reel/volume No. __________________ on page ____________ and/or as fee/file/instrument/microfilm/ reception No. ___________________, Records of said County.

Witnessed my hand and seal of County affixed.

_______________________________________________

Name Title

By, _________________________________, Deputy.

WARRANTY DEED

THIS DEED, made this ___ day of ______________, 20__ between Joe Seller and Jane Seller the grantor, whose address is 123 Anywhere street, Omaha, NB 99889 and Joe Investor the grantee, whose address is 233 Smith street, Vancouver, WA 99008.

WITNESSETH, that the grantor, for and in consideration of the sum of ONE HUNDRED DOLLARS ($100), the receipt and sufficiency of which is hereby acknowledged and received, and for other good and valuable consideration, has granted bargained, sold and conveyed, and by these presents does grant, bargain sell, convey and confirm unto the grantee, their heirs and assigns forever, all the real property, together with improvements, if any, situate and being in the County of Multnomah, State of Oregon, described as follows:

5th Block of the last piece of dirt in Portland

Also known as street and number: 555 Forest street, Portland, OR 99889

TOGETHER with all and singular hereditaments and appurtenances thereunto belonging, or in anywise appertaining and the reversion and reversions, remainder and remainders, rents, issues, and profits thereof, and all the estate, right, title, interest, claim and demand whatsoever of the said grantor, either in law or equity, of, in and to the above bargained premises, with the hereditaments and appurtenances.

TO HAVE AND TO HOLD the said premises above bargained and described, with the appurtenances, unto the said grantee, their heirs and assigns forever. And the said grantor, for himself, his heirs, and personal representatives, does covenant, grant bargain and agree to and with the grantee, their heirs and assigns, that at the time of the ensealing and delivery of these presents, is well seized of the premises above conveyed, has good, sure, perfect, absolute indefeasible estate if inheritance, in law, in fee simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the same in manner and form aforesaid,

and that the same are free and clear from all former and other grants, bargains, sales, liens, taxes,
assessments, encumbrances and restrictions of any kind or nature whatsoever, except any easements, restrictions, covenants, zoning ordinances and rights?of?way of record and property taxes accruing subsequent to ____________________, 20___ , a lien not yet due and payable.

PAGE 2 WARRANTY DEED

The grantor shall and will WARRANT AND FOREVER DEFEND the above?bargained premises in the quiet and peaceable possession of the grantee, his heirs, and assigns, against all and every person or persons lawfully claiming the whole or any part thereof. The singular shall include the plural, the plural shall include the singular, and the use of any gender shall be applicable to all genders.

IN WITNESS WHEREOF, the grantor has executed this deed on the date set forth above.

x______________________________ ______________, 20__

Joe Seller

x ______________________________ ______________, 20__

Jane Seller

STATE OF ___________________ COUNTY OF ___________________

On ___________, 20 ___ , before me, ___________________, a notary public in and for said state personally appeared Joe Seller and Jane Seller , personally known to me (or proved to me based upon satisfactory evidence) to be the person(s) whose name(s) are subscribed to the within instrument and acknowledged that (s)he/they executed the same in his/her/their signature on the instrument the person(s) or entity on behalf of which they acted, executed the instrument.

Witness my hand and official seal

x___________________________

NOTARY PUBLIC

My commission expires __________

NOTICE TO THE BUYER

THE FOLLOWING DISCLOSURES ARE MADE BY THE SELLER(S), CONCERNING THE CONDITION OF THE PROPERTY LOCATED AT . . . . . . . . . . . . ___________________________________________________

("THE PROPERTY"), OR AS LEGALLY DESCRIBED ON ATTACHED EXHIBIT A.

DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER’S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME THIS DISCLOSURE FORM IS COMPLETED BY THE SELLER. YOU HAVE THREE BUSINESS DAYS, UNLESS OTHERWISE AGREED, FROM THE SELLER’S DELIVERY OF THIS SELLER’S DISCLOSURE STATEMENT TO RESCIND YOUR AGREEMENT BY DELIVERING YOUR SEPARATE SIGNED WRITTEN STATEMENT OF RESCISSION TO THE SELLER, UNLESS YOU WAIVE THIS RIGHT AT OR PRIOR TO ENTERING INTO A SALE AGREEMENT. THE FOLLOWING ARE DISCLOSURES MADE BY THE SELLER AND ARE NOT THE REPRESENTATIONS OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. THIS INFORMATION IS FOR DISCLOSURE ONLY AND IS NOT INTENDED TO BE A PART OF ANY WRITTEN AGREEMENT BETWEEN THE BUYER AND THE SELLER.

FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS PROPERTY YOU ARE ADVISED TO OBTAIN AND PAY FOR THE SERVICES OF A QUALIFIED SPECIALIST TO INSPECT THE PROPERTY ON YOUR BEHALF, FOR EXAMPLE, ARCHITECTS, ENGINEERS, LAND SURVEYORS, PLUMBERS, ELECTRICIANS, ROOFERS, BUILDING INSPECTORS, OR PEST AND DRY ROT INSPECTORS. THE PROSPECTIVE BUYER AND THE OWNER MAY WISH TO OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY ADVICE, INSPECTION, DEFECTS OR WARRANTIES.

Seller ___is ___is not occupying the property.

I. SELLER’S DISCLOSURES: *If "Yes" attach a copy or explain. If necessary use an attached sheet.

1. TITLE

___Yes ___No ___Don’t know A. Do you have legal authority to sell the property?

___Yes ___No ___Don’t know B. Is title to the property subject to any of the following?

(1) First right of refusal ___ (2) Option ___ (3) Lease or rental agreement ___ (4) Life estate? ___

___Yes ___No ___Don’t know *C. Are there any encroachments, boundary agreements, or boundary disputes?

___Yes ___No ___Don’t know *D. Are there any rights of way, easements, or access limitations that may affect the owner’s use of the property?

___Yes ___No ___Don’t know E. Are there any written agreements for joint maintenance of an easement or right of way?

___Yes ___No ___Don’t know F. Is there any study, survey project, or notice that would adversely affect the property?

___Yes ___No ___Don’t know G. Are there any pending or existing assessments against the property?

___Yes ___No ___Don’t know H. Are there any zoning violations, nonconforming uses, or any unusual restrictions on the subject property that would affect future construction or remodeling?

___Yes ___No ___Don’t know I. Is there a boundary survey for the property?

___Yes ___No ___Don’t know J. Are there any covenants, conditions, or restrictions which affect the property?

WATER:

A. Household Water 1) The source of the water is [ ] Public [ ] Community [ ] Private [ ] Shared

2) Water source information:

___Yes ___No ___Don’t know a. Are there any written agreements for shared water source?

___Yes ___No ___Don’t know b. Is there an easement (recorded or unrecorded) for access to and/or maintenance of the water source?

___Yes ___No ___Don’t know c. Are any known problems or repairs needed?

___Yes ___No ___Don’t know d. Does the source provide an adequate year round supply of potable water?

___Yes ___No ___Don’t know e. Are there any water treatment systems for the property? [ ]Leased [ ]Owned

B. Irrigation

___Yes ___No ___Don’t know 1) Are there any water rights for the property?

___Yes ___No ___Don’t know 2) If they exist, to your knowledge, have the water rights been used during the last five-year period?

___Yes ___No ___Don’t know 3) If so, is the certificate available?

3. SEWER/SEPTIC SYSTEM

A. The property is served by: [ ] Public sewer main [ ] Septic tank system [ ] Other disposal system (describe)_______________________

___Yes ___No ___Don’t know B. If the property is served by a public or community sewer main, is the house connected to the main?

___Yes ___No ___Don’t know C. Is the property currently subject to a sewer capacity charge?

___Yes ___No ___Don’t know D. If the property is connected to a septic system

___Yes ___No ___Don’t know 1) Was a permit issued for its construction, and was it approved by the city or county following its construction?

___Don’t know (2) When was it last pumped: ___________, _____________

___Yes ___No ___Don’t know (3) Are there any defects in the operation of the septic system?

___Don’t know (4) When was it last inspected? ___________, __________

___Yes ___No ___Don’t know 5) How many bedrooms was the system approved for? _____________ BR

___Yes ___No ___Don’t know E. Do all plumbing fixtures, including laundry drain, go to the septic/sewer system? If no, explain:

________________________________________________________________________

___Yes ___No ___Don’t know F. Are you aware of any changes or repairs to the septic system?

___Yes ___No ___Don’t know G. Is the septic tank system, including the drain field, located entirely within the boundaries of the property?

4. STRUCTURAL

___Yes ___No ___Don’t know A. Has the roof leaked? If yes, has it been repaired? _____________

___Yes ___No ___Don’t know B. Have there been any conversions, additions, or remodeling?

___Yes ___No ___Don’t know 1. If yes, were all building permits obtained?

___Yes ___No ___Don’t know 2. If yes, were all final inspections obtained?

___Yes ___No ___Don’t know C. Do you know the age of the house? If yes, year of original construction: ______________

___Yes ___No ___Don’t know D. Do you know of any settling, slippage, or sliding of either the house or other structures/improvements located on the property? If yes, explain: ___________________________

___Yes ___No ___Don’t know E. Do you know of any defects with the following: (Please check applicable items)

___Foundation ___Decks ___Walls ___Chimneys ___Interior Walls ___Alarm ___Doors ___Windows ___Patios ___Ceilings ___Slab floors ___Drive ways ___Pool ___Hot tub ___Sauna ___Sidewalk ___Outbuildings ___Fire places ___Floors ___Walkways ___Other _____________________________ ___Wood stoves

___Yes ___No ___Don’t know F. Was a pest or dry rot, structural or "whole house" inspection done? When and by whom was the inspection completed? ____________________________________________________

___Yes ___No ___Don’t know G. Since assuming ownership, has your property had a problem with wood destroying organisms and/or have there been any problems with pest control, infestations, or vermin?

5. SYSTEMS AND FIXTURES If the following systems or fixtures are included with the transfer, do they have any existing defects:

___Yes ___No ___Don’t know A. Electrical system, including wiring, switches, outlets, and service

___Yes ___No ___Don’t know B. Plumbing system, including pipes, faucets, fixtures, and toilets

___Yes ___No ___Don’t know C. Hot water tank

___Yes ___No ___Don’t know D. Garbage disposal

___Yes ___No ___Don’t know E. Appliances

___Yes ___No ___Don’t know F. Sump pump

___Yes ___No ___Don’t know G. Heating and cooling systems

___Yes ___No ___Don’t know H. Security system

___Yes ___No ___Don’t know [ ] Owned [ ] Leased [ ] Other

6. COMMON INTEREST

___Yes ___No ___Don’t know A. Is there a Home Owners’ Association? Name of Association

___Yes ___No ___Don’t know B. Are there regular periodic assessments: $_____________ per [ ] Month [ ] Year [ ] Other

___Yes ___No ___Don’t know C. Are there any pending special assessments?

___Yes ___No ___Don’t know D. Are there any shared "common areas" or any joint maintenance agreements (facilities such as walls, fences, landscaping, pools, tennis courts, walkways, or other areas co-owned in undivided interest with others)?

7. GENERAL

___Yes ___No ___Don’t know A. Is there any settling, soil, standing water, or drainage problems on the property?

___Yes ___No ___Don’t know B. Does the property contain fill material?

___Yes ___No ___Don’t know C. Is there any material damage to the property or any of the structure from fire, wind, floods, beach movements, earthquake, expansive soils, or landslides?

___Yes ___No ___Don’t know D. Is the property in a designated flood plain?

___Yes ___No ___Don’t know E. Are there any substances, materials, or products that may be an environmental hazard such as, but not limited to, asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, and contaminated soil or water on the subject property?

___Yes ___No ___Don’t know F. Are there any tanks or underground storage tanks (e.g., chemical, fuel, etc.) on the property?

___Yes ___No ___Don’t know G. Has the property ever been used as an illegal drug manufacturing site?

8. FULL DISCLOSURE BY SELLERS

A. Other conditions or defects:

___Yes ___No ___Don’t know Are there any other material defects affecting this property or its value that a prospective buyer should know about?

B. Verification:

___Yes ___No ___Don’t know The foregoing answers and attached explanations (if any) are complete and correct to the best of my/our knowledge and I/we have received a copy hereof. I/we authorize all of my/our real estate licensees, if any, to deliver a copy of this disclosure statement to other real estate licensees and all prospective buyers of the property.

_________________________________ ______________________________ ____________
seller Seller Date

II. BUYER’S ACKNOWLEDGMENT

A. As buyer(s), I/we acknowledge the duty to pay diligent attention to any material defects which are known to me/us or can be known to me/us by utilizing diligent attention and observation.

B. Each buyer acknowledges and understands that the disclosures set forth in this statement and in any amendments to this statement are made only by the seller.

C. Buyer (which term includes all persons signing the "buyer’s acceptance" portion of this disclosure statement below) hereby acknowledges receipt of a copy of this disclosure statement (including attachments, if any) bearing seller’s signature.

DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER’S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME OF DISCLOSURE. YOU, THE BUYER, HAVE THREE BUSINESS DAYS, UNLESS OTHERWISE AGREED, FROM THE SELLER’S DELIVERY OF THIS SELLER’S DISCLOSURE STATEMENT TO RESCIND YOUR AGREEMENT BY DELIVERING YOUR SEPARATE SIGNED WRITTEN STATEMENT OF RESCISSION TO THE SELLER UNLESS YOU WAIVE THIS RIGHT OF RESCISSION. BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS REAL PROPERTY TRANSFER DISCLOSURE STATEMENT AND ACKNOWLEDGES THAT THE DISCLOSURES MADE HEREIN ARE THOSE OF THE SELLER ONLY, AND NOT OF ANY REAL ESTATE LICENSEE OR OTHER PARTY.

BUYER _______________________________ BUYER _____________________________ Date__________, 200__

Sample Real Estate Business Plan

Objective: To build an outstanding real estate portfolio. My goals for the business are to first generate immediate income for bills and debt reduction, and second to build a successful real estate business in order to accumulate capital and credit to support my lifestyle and other investment opportunities or business ventures.

Commitment:

- To help alleviate the real estate problems others

- To help qualified people become home owners

- Minimum 15 hours per week in the business (including all day Fridays and half Saturday)

o Learning and implementing marketing strategies

o Calling on sellers a minimum of 1 hour twice a week

o Minimum of 4 hours per week education

Monetary:

- Individual Goals:

o $1,500 of monthly residual income from real estate by end of 2003

o $60,000 cash from real estate for 2004 (reevaluate 6 months; $2,500 monthly)

o $120,000 cash in 2007 (minimum $5,000 monthly residual income)

- Additional Partnership Goals:

o Minimum 6 deals completed by 8/31/04

Net profit/equity in partnership of $60,000 (ave. $10,000 per deal; does not include rental income, tax deductions)

o 10 Deals in Year 2 (consider adding staff)

o 12 Deals in Year 3

o $400,000 equity by end of Year 5

Structure

- I will be the driver of my business, doing the leg work and making decisions/recommendations

- I plan to use partners to help grow my business more quickly and allow me to do transactions that I may not be able to do on my own (i.e. require capital or credit)

- May add other corporations/pieces to segregate for tax and liability considerations

- Will likely eventually integrate with other businesses to leverage resources and maximize tax benefits

- Would also like to give family/friends opportunity to work into the business in the future perhaps with their separate arm/corporations

Marketing

Budget:

- $250 for start up and October marketing

- Minimum $50-100 per month through end of 2003 (depending on cash flow)

- Reevaluate budget and advertising methods for January 2004

Initial Strategies:

- Business cards

- Driving for $

- Classified Ads

- Direct mail

- Networking

- Signs

- Divorce/Probate records

- Door Hangers / Fliers

- Expired MLS listings

- Website

Considerations

v Need to focus on ways to generate income quickly

v I may need some help with Marketing (financial and ideas/strategies) in the beginning

v Must make time to focus on new company (Geis Asset Management)

Education

v Focus on improving marketing skills

v Develop target areas for marketing

v Practice phoning to sellers and handling objections

v Become proficient at ‘Subject to’ transactions

v Must become more familiar with internet tools (i.e. auto-responders, advertising)

v Asset protection strategies for myself, and particularly at this stage, my business partners

Next Steps

Ø Complete closing on current properties

§ One on contract (currently refinancing) which is cash flowing at ~$80 per month (with about $10K equity; $21K purchase – $32K appraised value) – possible lease option when lease expires December

§ Second will cash flow at ~$500 per month (Section

Ø Print business cards (Kinko’s ?) by 9/26/03

Ø Start “WE BUY HOUSES” Ad campaign in classifieds 9/25/03

Ø Incorporate other tactics in following weeks

§ Letters and follow up to divorce/probate leads 10/3/03

§ Begin with direct mail 10/10/03 (determine target areas)

§ Begin marketing for qualified buyers with first leads

§ Learn and utilize internet marketing tools/strategies

Ø Continue establishing birddogs and other resources (attys., realtors, ect.)

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