A real estate deal sheet is, as the name implies, a sheet outlining the agreed-upon terms of the transaction as well as the parties involved.
The seller’s agent or broker typically prepares this document once an offer has been accepted on a property.
Does a deal sheet mean a buyer is committed or locked in to buying a property?
The deal sheet is non-binding and does not mean that a buyer must buy a property. That only happens when a purchase and sale agreement is executed and a deposit is held in escrow.
What is the purpose of a deal sheet?
A real estate deal sheet shows that the buyers are serious about purchasing a property and wish to move to the next stage. Also, it is a document that the agents can pass on to the attorneys, who will then proceed to draft the sales contract.
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What information is in a deal sheet?
- Purchase Price – It is vital to ensure that the sales price agreed upon has been added. In many negotiations, different prices are discussed, and it can be confusing as to what the final agreed number is. It’s worth double-checking that the price includes any extra items, such as furniture, as well.
- Closing Date – Sometimes closing dates are based on one of the parties having to sell their property or repairs having been done. Usually, it’s okay to state the standard 60-90 days for a financed deal or 30-60 days for an all-cash or non-contingent agreement. This should give the buyers and sellers time to do what they need to in order to close on the specified time.
- Financial Information – In the case of a financed deal, ensure that the percentage down is the same as the buyer proposed. In big deals, a few percentage points can mean a lot of money.
- Exclusions/Inclusions – The real estate deal sheet should mention if furniture or additional appliances should be left in the property. Also, a buyer may want certain items such as cast iron tubs or underground oil tanks removed prior to closing.
- Contingencies – This is important. Not having a mortgage contingency is cause for buyers and sellers to celebrate. Still, the deal sheet should spell this out along with home inspections.
- Flip Tax – In the case of a co-op deal, include the building’s flip tax — usually either a percentage or a per-share dollar amount.
- Number of Shares – Again, for a co-op deal, list the number of shares allocated for the specific lot.
- In addition, a real estate deal sheet will include the buyer and seller’s contact and identification information: name, current address, social security number, email, contact phone.
What happens immediately after the deal sheet has been circulated?
With a real estate deal sheet in hand, both attorneys can start drafting the finer points of the deal including any addendums. The sales attorney will then begin to draw up the purchase and sale agreement. Your attorney will stay in contact with you as the deal progresses until the purchase sale agreement has been signed. Last stop, closing!
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