Need To Know #1: After due diligence, serious money should not be refunded, but if the buyer wants to terminate later and the down payment is called serious money in the sales contract, the buyer can withdraw from the contract by losing the serious money. If the sales contract does not set serious money, but uses the term payment, the buyer not only loses the deposit, but can also be sued for a defined benefit. Serious money is considered contractual compensation. The Louisiana purchase agreement is a must when it comes to conducting a real estate transaction specific to residential real estate. The details of the sale are inserted in the corresponding fields in the form. The different fields include the price of the house, serious money deposit, closing date, etc. Once all the information has been included in the agreement, it should be submitted to the relevant party for consideration. If accepted, all participants should sign the contract to guarantee a concrete contract. Many states protect the broker`s right to collect a commission. Often, a broker has the right to collect a commission by simply purchasing a buyer willing to buy the property at the seller`s price, whether the agreement is concluded or not.
Although national legislation does not impose such conditions, list agreements often contain these provisions. While this may be good for broker protection, it may require the seller to pay a commission, even if the property remains unsold. Need to Know #5: In Louisiana, title insurance is paid by the buyer, which could be different from other countries like Texas, where the seller pays for title insurance. If the buyer wishes to terminate the contract within due diligence and recover the serious money, the broker or title company that holds the serious money will request a form signed by the seller and buyer. The Louisiana Real Estate Commission states that a broker cannot return a deposit to a buyer without a signed termination of all contracting parties. If not all parties sign the annulment, then a dispute arises and the Louisiana Real Estate Commission proceedings must be followed; however, the real estate commission does not want to be the institution that settles disputes, and the surety is placed in court, and you have to file a complaint to resolve the problem. Need To Know #9: There are two types of title insurance, the lender`s and the owner`s policies.