Published on 02/9/2009

Posting Buyer's Tips for use by our readership as they search for their "Dream Property". From a series of articles written in 2004 - LCF Group.

Master's Tips for Buying Rural Property (6 of 8 in a series)

Contract and Deposit BUYER’S TIPS 6

You may decide this property is the one you want! If so,agree on a deposit amount and
obtain the owner’s signature to reserve the property for you a shortperiod of time, until
you may come to terms for a contract. This will give you some days to getfamily consensus, do some courthouse record research, line up financing,and ensure another
meeting with the owner to sort out contingencies. Agree that the depositwill be refundable up to a certain amount of days, then nonrefundable thereafter.

You have now secured some additional time, and the ownerknows you are serious and it is time to move toward a signed document:

Set an appointment with the owner to agree on terms forcontract, perhaps with real estate attorney or other representative present(or you may consult with someone prior to your meeting). Be prepared tolist unknowns as contingencies to the contract (clear title, subject tofinancing approvals, good survey, contingent on sale of your current property,appraisal reflecting value, etc.).

Review draft of contract before signing, and verify descriptionof real property and any
other items included in the sale. Make sure proper credits are given fordeposits, other
concessions, and note the balance you will be expected to pay at closing.Remember that closing costs associated with your purchase will increasethe amount you need to bring to settlement. Know which of those costs willbe paid by you, the buyer, and which ones will be paid by the current owner.Taxes are generally prorated to the day of closing.

Make note of deadlines: such as providing commitments tothe owner for third-party
financing, the time when you may no longer terminate contract without default,when your deposit becomes nonrefundable, etc. Also, settle on a closingdate which gives you ample time to make your arrangements. Be sure to performin advance of these deadlines.

Exchange contact information for attorneys, representativesfor buyer and seller, so that
good communication may simplify your buying process. Solicit help from theseprofessionals, ask questions as you need to, and recognize that they mustbe paid for their services.