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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 116712
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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Purchasing a co-op person to person. What kind of document

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Purchasing a co-op person to person. What kind of document do we need to bind the deal, protect both parties. Where do we put the ernest money?
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You need to have a purchase and sale agreement signed by both parties. Escrow can be held by a party you trust or can be placed with an attorney in an escrow account. Earnest money is a deposit that is not returned by the seller unless the deal falls through based on the seller's fault and in the purchase sales agreement you need to specify what happens to the earnest money and the conditions under which it would be refundable and not refundable.
For the seller, if they are taking earnest money, they need to make sure they hold it until the deal is completed or a condition occurs that would cause the buyer to forfeit the money.
Here is a sample co-op purchase sale agreement, but it is with a company as seller, so you would have to modify it for your use:

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