Option fee

Option fee, it doesn’t go to the seller unless the option period is extended, Sean is going to tell us all about that. We’re going to end up in a link to you guys and share that one so you have it. And then we’ll split screen and take a look.

Yes, we’re going to get in the weeds here of the option fee. There’s been a little confusion and I can see why. So earlier in the year, we had a contract update and the earnest money and the option fee now go to the title company. This is when you execute a contract and go to the title company. They can go as one check, one wire. They can go separate, but they go they have to go to the title company.

OK, so we’ve been having some discussions about, OK, what if somebody needs to extend their option fee? Well, this is new because over the last year we haven’t even seen an option, period. So if you have an option period, and you need to extend it, OK, that needs to be extended on an amendment.

And what do we typically do? We read the contract and do exactly what it says. So. We initially send the Ernest an option to title. However, if you pull up the amendment, which is going to slide over here really quick so and walk through it together.

If you go down to number six, Buyer has paid Seller an additional option fee of for an extension of the unrestricted right to terminate the contract owner before 5:00 p.m. and you put the date. OK, a couple of things with this. This says, Buyer has paid seller. So this is very important. Listen up.

Do not have this. Done and signed until you have given the seller the additional option fee. Please, otherwise, it’s not valid. So it goes directly to the seller. They must have it before you sign the amendment. Those two things, please keep that in mind.

Yeah, because it doesn’t say buyer will.

Buyer has paid Seller, so it’s a little confusing because some people say, well, because it’s supposed to go to the seller or the title company now I’ll just give it to the title company. You can do that. But just understand, if it gets lost in the shuffle, it is supposed to have been delivered to the seller. Upon signing this document, if you have any questions on that, let us know.

But, you know, we go by what the contract says and that is exactly what the contract says. So that’s what we’re going to do. You will have some attorneys that we have heard tell different sides and give their input of, you know, what they say, send it to the title company. Well, that’s not what this says.

So it could be the intention of the contract. However, that’s not what it actually says. Yeah. So, Shawna, you’re a contract master, so you really are clear and clearing it up, clearing up confusion.

Well, you know you know what?

And I can read this one thing I can read, and that’s exactly what it says.

Yeah. Well, that sometimes that’s the easiest part. Right. Is due to says read or read the contract. I hope everyone out there has read the contract. Chat in now, if you have read the whole real estate contract from front to back, so we’re going to put a poll up real quick and see who’s actually read the contract recently in any of the changes that are coming out.

Right. It’s amazing to see how many agents don’t actually do that. So, yeah, take today the same day and read the contract and actually notice through it. Yeah. You know what it is. All right. Sort of important. Thank you very much.

Episode Links

real estate, Mike Acquisto, Shana Acquisto, Acquisto Real Estate, TNT

Episode Recorded Live on YouTube 8.17.21

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