Real Estate Binder Agreement Sample

The binder contract generally contains conditions under which the potential buyer would be willing to acquire the property: specific prices, real estate conditions or financing agreements – usually referred to as contingencies. An entry or sting date is also included. As a general rule, within 10 days, the buyer must have the right to enter into a formal contract with the seller. However, since the binder is not a formal contract, the seller can make a higher offer if an offer is offered to him and he has to return to the tie, warns Hirsch. A: Mitchell Hirsch, a real estate lawyer at Hirsch and Hirsch in Hempstead, says that a binder contract is not a contract to sell the property, but an offer to buy the property to show in good faith that you are really interested. “This is an agreement in the future, which will be subject to a more formal contract,” he added. The binder contract may be accepted or refused by the seller of the property. Do you need real estate advice? E-Mail-realestate@newsday.com. A broker`s commission agreement is included in the binder and the seller is asked to sign it. This would assure the broker that they will be recognized as the agency that obtained the buyer, which prevents the seller from circumventing the broker`s fees and entering into a private contract with the buyer. Q: I`m interested in a house and the seller`s broker urges us to sign a file. What is a binder and do I have to sign it? “A meticulous lawyer would tell his client not to worry about stopping a binder,” he says.

“If his client is really interested in the property, he should advise him to go directly into the contract. The reason many brokers insist on binder is that they often try to protect their commissions. “If the agreement is accepted, the interested buyer usually deposits $500 to $1,000 of the purchase price,” he says. “The binder cheque is usually held by the seller`s real estate agent, and then, when signing a real estate contract, it is given to the seller`s lawyer for deposit into a trust account.” There`s a partitioning sign in front of a house in Miami. (February 11, 2011) Image: Getty/Joe Raedle By clicking Connect, you accept our privacy policy.

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