This Contract For Sale And Purchase And Deposit Receipt: Fill & Download for Free

How can buyers who need to sell before they can buy protect themselves during contract negotiations? Is an offer with a Hubbard Contingency less attractive to home sellers?A Hubbard Contingency allows a set amount of time for a buyer to obtain a fully executed contract of sale on their existing home before being forced to either walk away or waive their right to walk away from their new purchase.If negotiated properly with the help of a veteran real estate attorney, a home buyer who needs to sell his old home first won’t have to face the uncertainty of whether he’ll be able to procure the sale proceeds from his old home in time to buy his new property. This is normally a scary prospect for buyers who need the money from selling their old home in order to buy, especially if they are in contract on their new place but haven’t found a buyer yet on their old home. They run the risk of forfeiting their 10% of the contract price “good faith deposit” if they are unable to complete the purchase!Read the original article here: What is a Hubbard Contingency for NYC Real Estate Transactions | HauseitAn offer with a Hubbard Contingency, also known as a “sale contingency,” is substantially less attractive to home sellers than a comparable offer without such a contingency. This is because the seller has little information on how likely the buyer’s existing apartment will sell, how long it will take and what stage of the process the buyer is in.Furthermore, it is not entirely clear per Real Estate Board of New York rules whether a listing that is in contract with a Hubbard Contingency must change its status to “in contract.” If that is indeed required, then the seller is at a severe disadvantage because although the seller is allowed to solicit better offers until the contingency is satisfied or waived, the number of buyer inquiries will be dramatically reduced if a property is listed as “in contract.”Even if a property has a Hubbard Contingency but isn’t listed as “in contract,” the seller still might lose interested buyers who learn that there is already an accepted offer, or that the accepted offer level is at a certain price. This might discourage buyers who say they’re not seriously searching and those overly polite buyers who say they don’t want to waste anyone’s time. However, these buyers often times do turn into real offers so it’s best to encourage as many viewings as possible.Keep in mind that in real estate there is no need to disclose such specific information such as offer level and contingencies.Why would a seller accept a Hubbard Contingency?A seller might agree to a Hubbard Contingency if he or she has been on the market very a long time and is desperate to sell. In that case, an offer with a sale contingency might be better than nothing. However, any smart seller will realize that the deal is not binding as the buyer will have a myriad of ways to make sure his existing home doesn’t sell if the buyer wanted to back out. Therefore, the seller must continue to aggressively market his home, hold open houses and perhaps even lower the price in a gambit to attract additional buyers.We’ve included a sample “rider,” or addendum to a purchase contract in New York City. In other parts of the country where purchase agreements are standard forms, the Hubbard Contingency is typically a separate, simple one page form with content similar to the below.HUBBARD CONTINGENCY RIDERTHIS RIDER is incorporated as a part of the contract between [seller name], as seller, and Buyer for the sale of [address]. For the purposes of this Rider, “Buyer,” Buyer’s existing home, and the “Hubbard Contingency Date” are the following:Buyer(s):Buyer’s existing home is the home located at:Hubbard Contingency Date:This Contract is contingent upon Buyer obtaining a non-contingent contract for the sale of Buyer’s existing home, subject to and in accordance with the further provisions of this Rider. For the purposes of this Rider, a “non-contingent contract” for the sale of Buyer’s existing home shall mean a contract that may not be unilaterally terminated by the purchaser as a result of any condition to be satisfied by the purchaser.Buyer will diligently pursue procurement of a non-contingent contract for the sale of Buyer’s existing home and promptly give Seller written notice if, as, and when such contract is obtained and that the Hubbard Contingency has been satisfied. If Buyer has not been able to obtain said non-contingent contract on or before the Hubbard Contingency Date, Buyer may terminate this Contract by giving written notice to Seller, which notice must be received by Seller not sooner than the Hubbard Contingency Date and later than two business days after the Hubbard Contingency Date, and the notice must unequivocally state that Buyer has not obtained a non-contingent contract on or before the Hubbard Contingency Date and is terminating this Contract as a result.If, prior to satisfaction of the Hubbard Contingency, Seller finds another buyer to purchase a condominium unit that is the subject of the within Contract, Seller may give notice to Buyer so stating. If Buyer desires keep the within Contract for Buyer’s purchase in effect, Buyer may do so by giving written notice to Seller that unequivocally states that Buyer is waiving the Hubbard Contingency, which notice must be received by Seller within forty-eight (48) hours of receipt by Buyer of Seller’s notice. If Seller gives Buyer notice under this paragraph and Buyer does not waive the Hubbard Contingency in the manner provided herein, Seller have the option, in Seller’s sole and absolute discretion, to terminate this Contract, in which event, Seller shall be free to sell the premises to another party.If the Contract is duly terminated in compliance with the provisions of this Rider, Seller shall promptly return Buyer’s deposit, without interest. If the Contract is not so terminated, the Hubbard Contingency shall be deemed satisfied and no longer a condition of the contract.IN WITNESS WHEREOF, the parties hereto have executed this Rider.Buyer SellerPlease note: this article is not intended to serve as legal or tax advice. You should consult your lawyer and tax attorney for all aspects of your real estate transaction.

These are the advantages of leasing.(1) Lease may be low cost alternative: Leasing is alternative to purchasing. As the lessee is to make a series of payments for using an asset, a lease arrangement is similar to a debt contract. The benefit of lease is based on a comparison between leasing and buying an asset. Many lessees find lease more attractive because of low cost. For example - you are transferred to another city for 6 months. For daily travel you need a car. If you buy car in your own name then as per Motor Vehicles Act you have to pay one time road tax and incur other expenses besides cost of car. You can always sell the car after 6 months before leaving. It may be economical to take a car on lease for 6 months as lease rental may be less than net cash outflow arising from difference between total cost of the car and sale value you realise.(2) Tax benefit: In certain cases tax benefit of depreciation available for owning an asset may be less than that available for lease payment. In other words, differential tax treatment between owning an asset and taking it on lease may result in a decision in favour of lease. For example - if a firm owns an asset, it gets tax saving for depreciation on book value as per the I-T law (in case of MAT, depreciation on the book value is as per the depreciation schedule of the Companies Act, 2013, based on useful life), but in case of lease rent entire lease rental is tax deductible. In some cases this differential tax treatment means a higher tax savings for lease, implying lease is a smarter decision subject to other factors.(3) Working capital conservation: When a firm buy an equipment by borrowing from a bank (or financial institution), they never provide 100% financing. Depending upon the firm’s credit rating bank may finance 75% or 60% (say) of total cost of equipment. The rest 25% or 40% (as the case may be), the firm has to bring in - the amount that the firm provides as down payment from its own source is called margin money. Margin money requirement naturally reduces firm’s working capital (and liquidity). In case of high value asset the amount may be substantial having an adverse impact on operation. But in case of lease one gets normally 100% financing in the sense that one needn’t bring in margin money generally for taking an asset on lease. This enables conservation of working capital.(4) Preservation of Debt Capacity: As per the accounting standard operating lease is not capitalised in the books of the lessee. Operating lease payment is treated as expenditure in the profit and loss account. Neither the asset taken on lease appears as asset nor does the liability representing present value of future lease payment (cost of leased asset) appear as liability in the balance sheet. That is, operating lease doesn’t have any balance sheet impact. So, operating lease does not matter in computing debt equity ratio. This enables the lessee to go for debt financing more easily. The access to and ability of a firm to get debt financing is called debt capacity (also, reserve debt capacity). Operating lease, if it is properly structured, can work efficiently as a substitute of debt though there may hardly be any difference between the two in respect of regular cash out flow; but at the same time it keeps the debt capacity in fact.However, it is to be noted the above preservation of debt capacity is not generally applicable for finance lease as the present value of future lease payment (cost of leased asset) appears as liability in the balance sheet of the lessee and to be duly considered in calculating debt equity ratio.(5) Obsolescence and Disposal: After purchase of leased asset there may take place technological obsolescence of the asset. That means a technologically upgraded asset with better capacity may come into existence after purchase. To retain competitive advantage the lessee as user may have to go for the upgraded asset. The obsolete old asset may fetch a small portion of the book value upon disposal resulting in capital loss. In case of cancellable operating lease the lessee can terminate the contract in such circumstances. However, it is to be kept in mind that where there is a possibility of technological obsolescence the lessor will cover the risk by fixing a higher lease rental.(6) Restrictive Conditions for Debt Financing: When a company takes loan to purchase equipment (say), in the loan agreement lender may impose several restrictions on the borrower company to protect his interest. Apart from creating charge on the equipment purchased ( primary security), lender may ask for collateral securities on other assets, like -mortgage of landed property, pledging fixed deposit receipts with the bank, asking for guarantor etc. The lender can impose other conditions too - like restriction on payment of dividend, putting lender’s representative on the board to ensure proper utilization of fund etc. In case of lease such tight conditions are not imposed as lessor remains the owner of the asset legally and he can recover the asset if the lessee fails to abide by the lease termsAbove answer is taken from ca final sfm faculty Aaditya Jain Sir books.

As the instigator and founder member of the Marine Brokers Association of NSW Australia and owner boat broker of Sydney Boat Sales for 12 years I can explain how the buying process should operate. There will be variations to this but the principle will remain the same - your money is kept in a Trust account which is only used for the sale and purchase of boats. Everything I have listed below should be the responsibility of the boat broker.When you have decided to buy the boat you should be given a contract to sign. Make sure the broker confirms he or she has a written agreement to sell the vessel.The contract will list the inventory and the conditions of sale.You will be asked to place a refundable deposit to secure the vessel. Should you decide not to buy the vessel the deposit will be returned to you.The conditions of sale should state that you are buying the vessel subject to a survey.The survey cost and the removal of the vessel from the water to inspect the hull and fittings etc will be paid by you or the owner. This will vary from broker to broker. However normally it is paid by the buyer.The deposit is placed in a dedicated account which can only be used to the holding of monies for the sale and purchase of boats. This safeguards your money.You will be given a receipt for the deposit which is normally 10 per cent of the sale price.The receipt should be from the bank not the broker.Once the inspection is completed and any post-inspection negotiations are carried out you will be asked to sign that you are now buying the boat. Your deposit now becomes non-refundable and you must pay the remainder of the sale price.This should be completed within 5 days of the agreement to buy.You should also be given confirmation that there is no money owing on the boat and as far as is legally possible you are getting clear title.Do not under any circumstances accept the vessel until you have proof that any outstanding loans on the vessel have been paid out - this can be done with your payment.If the vessel is owned by several people make sure they have all signed the sale contact.If it is a commercially owned vessel make sure the company secretary and all the directors have signed the sale document.Very Important for Commercially owned Vessels. Make sure the vessel is not listed as an asset on a company loan - the broker should do this.If the vessel is being sold as part of a liquidation sale ensure that the finance company are able to prove all loans caveats etc have been paid out. They must also show the court order or documents giving them authority to repossess.Make sure the inventory is checked during the inspection and signed by the owner as all its inclusions being part of the sale.The sale of a vessel must be accompanied by a document clearly showing you are the new owner and by the same legally witnessed by the owner(s) stating they are the owners and agree to sell.If in doubt check with the local Marine Brokers Association.If the vessel has been registered overseas you will need to check for any liens or caveats from those countries.The specific answer to your question is that all documents should be prepared and ready when the vessel is listed. Your money should be held no longer than a week unless the owners cannot be contacted.Best Advice in the History of the World - Never buy a boat even a small boat without an inspection by a qualified marine professional. You cannot pull the handbrake on and park - you can only sink if there is a major defect.