Home Buying in New Canaan>Question Details

Shopper, Home Buyer in New Canaan, CT

Is skipping a binder typical?

Asked by Shopper, New Canaan, CT Tue Jul 2, 2013

Is it typical for transactions in New Canaan to go direction to a contract without both parties signing a binder first?

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9
Call your title company and discuss with them.
0 votes Thank Flag Link Thu Jan 29, 2015
My house is for sale now in New Canaan and I require any buyer to go to immediate contract.
I have brought and sold houses in other states and generally this is the way things are done.

Just wish there was a std fill in the blank contract in New Canaan like in other markets and that the closing process was run by title companies instead of layers
0 votes Thank Flag Link Thu Jan 29, 2015
It varies by region. Here on Long Island it is unusual for both parties to sign a "binder".
0 votes Thank Flag Link Thu Jul 4, 2013
Actually, it depends on what you mean by "binder." In Fairfield County, the various towns have their own customs regarding an offer to purchase. In New Canaan, we use what's called a Memorandum of Terms/Sale, a non-binding form that clearly states the final terms and price agreed upon through your verbal or written offer. The contract is then written from this Memo. The Memo provides necessary information for the seller's attorney such as names and addresses of all parties, the price and contingencies, the contract and inspection dates, when you will close, the amount of mortgage the buyer is seeking, etc. I would not recommend going without this form as there are too many things that can be misinterpreted and I always recommend a paper trail. Neither the buyer nor the seller typically signs the Memo in New Canaan.

In Darien, a Binder of Sale is common, and this is usually signed by both buyer and seller. However, most agents cross off the "binding" language on the form at the suggestion of many attorneys.

In other Fairfield County towns and cities, an Offer to Purchase Form is standard, and both the buyer and seller sign it.

For more helpful tips on real estate, including my monthly checklists for maintaining your home, please visit http://www.RachelWalshHomes.com.

Rachel Walsh
William Pitt Sotheby's International Realty
New Canaan, CT 06840
203-912-5908
Web Reference: http://RachelWalshHomes.com
0 votes Thank Flag Link Thu Jul 4, 2013
It appears to work here and every town has their own direction.
0 votes Thank Flag Link Tue Jul 2, 2013
In New Canaan, Darien and Greenwich skipping the Binder and going directly to contract is the norm. Usually the purchase terms are written up when there is a meeting of the minds for the attorney to have the details to write the contract. In many ways I personally think going directly o contract is far more efficient for both the buyer and seller and each party's assumed position far more concrete. Unfortunately Binders are worthless in many cases and buyers can get the rug pulled out from under their feet even after they have spent money on inspections.
I love direct contract with whatever contingencies are needed protected in the contract...I practice real estate in many towns and frequently encourage my buyers and sellers to go this route.
So don't be scared of going directly to contract, you may in fact wind up in a far more secure position in the early stage of the buying process!
0 votes Thank Flag Link Tue Jul 2, 2013
Hi Shopper,

Each area has some set of customs or practices that are the "norm". Wherever you are buying, ask your agent to walk you through the expected process in that locale.

Best,
Jay Cooke
0 votes Thank Flag Link Tue Jul 2, 2013
Certainly done both ways, but if seller requests skipping the binder, you'll still have protections to withdraw from deal without penalty. It may be in your best interests to be the one requesting going straight to contracts as well, so hiring a seasoned Realtor and real estate attorney to guide you through the process is key. They will ensure you understand and feel comfortable throughout the transaction.

Best of luck with your purchase!
0 votes Thank Flag Link Tue Jul 2, 2013
Yes it is! A 1% check and the memo of terms is the step before contract while due diligence is being done (inspections, ect). However, going straight to contract is quite common in New Canaan real estate. Lately, the homes that are well priced have been quite competitive with a lot of buyers in the market looking for the same thing. Good luck and feel free to call with any further questions. (646) 239.1596
Web Reference: http://www.nicolesteel.com
0 votes Thank Flag Link Tue Jul 2, 2013
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