Benefits of Subject to Real Estate Contract Agreement Form
Buying a property with ‘Subject To’ clause is one of the wisest ways to purchase real estate property. ‘Subject to’ properties come with financial help already in place along with liens. Go for a Subject to Real Estate Contract Agreement Form if you are facing credit crunch and need clever financing.
‘Subject to’ usually means subject to existing mortgage that is already in place on the property. In this way, you have fewer burdens while paying installments for the property. The only important requirement for buyers in such properties is to keep paying installments of payment to the bank regularly.
People are mostly unaware of this option of buying real estate properties and think ‘Subject to’ properties are illegal. On the contrary, it is the easiest, safest and most profitable way to purchase properties.
It is not hard to find sellers with ‘Subject to’ properties. Several distressed property owners like to sell of properties with ‘Subject to’ clauses to relieve themselves from payment of further installments.
In addition to the usual information in a contract agreement, a Subject to Real Estate Contract Agreement Form includes a ‘Subject to’ clause. For example there would be a clause termed ‘Cash Subject to Existing Mortgage’ or ‘Cash with Assumption of Existing Mortgage’.
Points to remember while purchasing Subject to Real Estate properties:
- Less worries for banks and credit
- Low closing costs and fast closing time
- Repay at the owner’s interest rate (usually lower)
- Purchase property with long term financing in place
- Deposit installments in time
- It is not illegal