Home Buying in Walnut Creek>Question Details

Janet Guilba…, Real Estate Pro in Alamo, CA

I need a simple California purchase contract for a mother and father who are selling their house to their son (with no Realtor involved.)

Asked by Janet Guilbault NMLS # 238304, Alamo, CA Thu Oct 21, 2010

Does anyone have one they could e-mail to me or know of a website where I could download one? Borrowers do not want the standard one used by Realtors. Thank you in advance!

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janet ... I suggest they purchase a contract from a stationary store. And you might want to tell them that the reason the contract is complicated is that it covers everybody impartially ... which is very important when parents are selling to their adult child ...
0 votes Thank Flag Link Thu Oct 21, 2010
Janet, I don't think you should be providing this to your clients. I have a vision of the contract being insufficient in some way, and the son going to sell the house and finding a problem and coming back to sue you and your company for providing them with the forms.

All the best,
1 vote Thank Flag Link Fri Oct 22, 2010
Thank you for your excellent responses. They have submitted a contract they put together themselves, and also an appraisal they paid for themselves, which they used to determine the price.
0 votes Thank Flag Link Tue Oct 26, 2010
I am curious why they do not want to use the stadnard CAR form but that aside, the CAR froms are realtor forms. You can download one from professional publishing if you like. I would adivse them either way to go to a flat fee broker regardless. Its all fun and games until someone gets sued...
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Fri Oct 22, 2010
Hi Janet:

This sounds like a similar situation to a FSBO selling to a private party. They probably do not need a Realtor and they certainly should not, therefore, use a CAR Contract. I would suggest that they talk to an attorney or perhaps to a Title Company first. Title Comoanies are familiar with FSBO contracts.

At the very least, they should get hold of one of the publications that explains how to sell your home without a Realtor. This is one of the few situations where it may actually make sense to do so.

Bernard Gibbons

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - bernard@bernardgibbons.com

http://www.BernardGibbons.com
0 votes Thank Flag Link Fri Oct 22, 2010
Standard form are generally what realtors are authorized to work with...anything beyond this should always involve an attorney. To be on the safe side...refer them to an attorney for this.
0 votes Thank Flag Link Fri Oct 22, 2010
Janet have them contact their attorney. The attorney can draw up a simple purchase contract and may be able to steer them clear of any tax problems coming from complications in the transaction. For example if they are selling below market value the gift of equity may fall under gift tax laws and they would owe the IRS.
0 votes Thank Flag Link Fri Oct 22, 2010
I suggested that they use the regular contract (which I have) but they feel it is too complicated to do without a Realtor. Well, geez, that is why they need a Realtor, I get that!

They don't want any contract, all they want is a loan from me. But I cannot proceed with a loan without some sort of written agreement. Lender does not require a specific contract.....

PS I also suggested they hire a Realtor.
0 votes Thank Flag Link Thu Oct 21, 2010
Janet Janet Janet :) HA HA .. love ya. But it's not what "realtors" use, it is what is approved by our Dept of Real Estate and CAR. It's safer to have all the protections, disclosures and statutory clauses that are built into in it. There is no reason not to use it. :) Best to ask an attorney probably then if they don't want to pay anything. Or find a realtor who will do it for a fee vs. a commission. Just my thoughts, but there is no reason not to use the "tried and true" contract.
0 votes Thank Flag Link Thu Oct 21, 2010
see a lawyer. there are things they need to do, and they should probably NOT use a purchase contract....
0 votes Thank Flag Link Thu Oct 21, 2010
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