Selling Your Home To Move Into Senior Housing – Part 3
Okay. So you’re here to know more about the WB-11, real estate purchase agreement. All right. I’m going to go through some very specifics. It’s not going to be a long video. Most of the agreement is boilerplate. Even though it is 10 pages, the majority of it is just definitions of different phrases that are used, almost like very common things, what’s a seller and what’s a buyer and such. But I do just want to highlight a couple issues that you should be aware of when doing a WB-11.
Page 1 – The Basics On The Deal
Naturally, the first page is one of the important pages because it does outline the date, the property address, who is buying it, what is included in the sale, as far as personal property and things of that nature. Then it includes the date that this agreement has to be approved. And when you’re dealing with someone like ourselves, that date could be that very same day that you’re signing it, or we could have an approval date, a binding date sometime in the future, a binding date being when all parties have to sign the agreement so that it is a binding agreement. There’s a deadline for that. Then there’s also a closing date. Closing dates can be very hardwired, or they can be a little bit loose, depending upon the situation. It all can be written in there. But that’s what the first page is, describing those items.
Page 2 – Notes On Earnest Money
Second page, the main thing on the second page is it’s describing what’s the earnest money that we would put down to buy the property. Let me stress on that. There’s no set amount, but if somebody is only going to give you $10, a hundred dollars, some really small amount, that doesn’t really show a big commitment. They’re probably somebody who’s not going to actually buy your house and come to the closing table with several thousands of dollars. So I would say, be leery or wary or be on guard with that, all right? So we’ll put in there what the earnest amount is and when it’s due. It also states who holds the money. I would recommend a reputable third party title company holds the money in escrow. And that’s mainly what’s on the second page.
Page 4 – Contingencies
Third page is one of those pages that just describes definitions of things. Fourth page. Here, this is the thing that a lot of buyers put in their contracts: contingencies. The sale is contingent upon this thing or that thing, such as on the fourth page, inspection contingency. A lot of buyers say, “I want this inspected by somebody, and if it doesn’t meet my qualifications, I’m going to back out of the deal.” We don’t do that. Our offers are not contingent upon an inspection. We’ve inspected it. We want to buy it. Here’s the price. So you know that we’re doing it. So when you’re dealing, if you’re not dealing with us, on Page 4, be on the lookout for that, because that’s known as a weasel clause or get-out clause or whatever. We don’t have that.
Page 5 – Financing Contingencies
Financing commitment. When we buy the property, we pay in cash, so there’s no financing contingency. So just be on the lookout for that. If somebody says, “Oh, well, I have to get money from my bank,” okay, will they be able to get money? Will they tie up your property while they get your money? So that’s something to be on the lookout for.
Page 7 – Prorated Property Taxes
Page 6. For this type of “sell your home” situation to us, I don’t see anything applicable. This is all financing of the property. Page 7 there’s an item about real estate taxes. Where the real estate taxes are prorated, that whatever amount of taxes are due to the point where the property is sold will be your responsibility, you as the seller. So that’s on line 368. Very standard thing, that you as the seller is responsible for the taxes up till when the sale is consummated. This typically includes water and sewer is your responsibility until the property changes hands to us, the buyer.
Page 10 – Additional Provisions…And Signatures
Page 8, nothing really here. Again, mainly definitions. Page 9, again, is just basically definitions and typical boilerplate on different scenarios that may occur. Page 10 is where we discuss anything in particular that is out of the normal, such as getting your personal items. If we’re buying something from you that’s not part of the house, but it’s personal property, we may mention that in here. The section is called “Additional provisions/contingencies”. That’s where that would go, on the last page. And then you, as the seller, would sign it. We, as the buyer, would sign it. And that is a legal document, then, to buy the property when you’re selling your home to move into your senior housing community.
Next Video – Closing Steps And Documents
Now, this is all that is involved with the WB-11, and I will stop at this point, and you can continue on to the next video, which explains what happens to the WB-11 and what occurs from here on out to actually sell and close on the property.