A contract is needed for the private sale of property

A contract for sale and purchase is always the first step in the purchase and sale of real estate.

Transcript:

Joe: The homeowner finally agreed to sell me the property. However, he's insisting that I get a hold of an attorney for the sale of the property. I've also contacted him in regards of why do I need an attorney when we're already in agreement that the home will be sold as-is, no questions [crosstalk]

Attorney Tom Olsen: All right. Joe, by the way, are you going to get financing to buy this home?

Joe: Yes, sir.

Attorney Tom Olsen: All right, Joe. I'm happy that you guys have reached an agreement, but that is not going to give you the opportunity to cut any corners. Joe, as usual in buying and selling real estate in Florida, step number one always is a contract for sale and purchase. It is signed by the buyer, signed by the seller, that way we don’t have a meeting in the minds. Joe, somebody's got to prepare that contract.

You might go to me, as an attorney, and prepare that contract, or if you’ve got a real estate agent friend, they might do it for you for free, without taking a commission. Joe, this contract is a good idea so we know that there really is a meeting of the minds, but, Joe, when you go to borrow money, your lender is going to require that this formal contract be signed between you and your seller.