The 5 Key Elements of a Purchase Contract

I follow the teachings of many real estate coaching schools one of which is Ninja Selling, a networking program pioneered by Larry Kendall a broker & trainer based in Ft Collins Colorado.

Recently he presented a video, the message behind which I wanted to share.

When you are presenting the purchase contract to your buyer or seller client, I suggest you highlight the key areas around which the entire contract is based.

And when you send the contract over to the other agent, why not highlight these same key points with suggestions as to why the contract is worthy of strong consideration. Larry reports that one of his agents does this & has enjoyed a 100% acceptance rate in multiple offer situations.

Our standard 6 page AREA (Alberta Real Estate Association) Purchase Contract can be overwhelming.

If you are a new REALTOR® understanding the agreement might be just as overwhelming for you as for your client. If this is you, remember this feeling. Your clients will be in that situation every time.

What are the elements?

1. Price

Or in other words what do I pay or what do I receive?

2. Terms

Usually this refers to items that must be addressed. For example, the buyer might insist that the carpets be professionally cleaned & a receipt provided by the seller, by not later than closing.

3. Dates

Usually. When do I move in? When do I move out. Or by what date does the inspection need to be completed or the bank financing arranged by etc.

4. Inclusions & Exclusions

Usually fixtures & fittings. What goodies do I get, or what goodies do I leave?

5. Contingencies

Typically this refers to the conditions that must be satisfied (subsequent & precedent) before a contract can be formed. Typically these are suggested by the buyer ie a satisfactory inspection or securing of finance. However, in some cases the seller may set one too, ie subject to the seller finding a satisfactory new home.

Taking the time to break these items out from all of the legal ‘mumbo jumbo’ will set you apart as an expert & your clarity will be appreciated by your clients and the clients of the other REALTOR® too.

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