Selling a home in New York City can be a long process. Once you have found an offer and willing to accept it, you can move onto the next step. You are preparing a real estate deal sheet form. If you are unfamiliar with the deal sheet process, this article should clear everything up.
When working with an agent, it will not present many problems and can be drafted by them. It still helps to know the process and information to be included on the deal sheet.
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What is a Real Estate Deal Sheet?
A deal sheet is merely a document that includes a summary of the agreed-upon terms of the transaction and parties involved.
The reason for it is not to “lock-in” a deal but show that you’re serious about closing and want to move ahead with all. Keep in mind the deal sheet is non-binding and is merely term sheet for the attorneys.
If you are managing your sale through an Agent Assisted FSBO, you will be required to assemble the deal sheet on behalf of the listing agent. If working with a full-service listing agent (as 99% of NYC deals are), then they will assemble and circulate the deal sheet on your behalf. Once the seller has accepted the offer, the listing agent will draft the deal sheet.
After the buyer’s agent has reviewed it, it will be forwarded to the seller’s and buyer’s attorney. If everyone is happy, the seller’s attorney can begin drafting the contract of sale.
What goes into a deal sheet?
The information included on the deal sheet is:
- Terms of the sale (price, down payment percentage, contingencies, anticipated closing date)
- Specific details on the property (standard monthly charges, the number of shares in the case of a co-op)
- Contact details for all parties involved (purchaser, seller, both attorneys, brokers, and the lender)
The deal sheet also includes information on the buyer and seller, name, current address, social security number, email, contact phone, and fax number.
It should also include the following information from the attorney; firm name, attorney name, mailing address, email, office phone, and fax number.
The same goes for the brokers involved in the deal. Name; firm name; Firm address; agent license number; commission split; firms license number; email, office phone, cell phone, and fax number.
Lastly, the deal sheet should include all the terms of the proposed transaction
- Purchase Price – ensure that the sales price agreed upon, has been added. If the price consists of any extra items, such as furniture, as well.
- Closing Date – if either the buyer or seller has any stipulations for a particular closing date, it should be included. Otherwise, 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.
- Financial Information – if it’s a mortgage financed deal, ensure that the percentage down that the buyer proposed.
- Exclusions/Inclusions – if items, such as furniture, are part of the deal, they to should be added.
- Contingencies – a mortgage contingency or subject to a home inspection, etc.
- Flip Tax – if this is a co-op deal, include the buildings flip tax — usually either a percentage or a per-share dollar amount.
- Number of Shares – for a co-op deal, list the number of shares allocated for the specific lot.
What to do when the deal sheet is; completed?
The listing agent ensures everything is in order and sends it on your behalf to both attorneys and the buyer’s agent. Once circulated, the attorneys will contact each other to begin drafting the contract and rider. As things move forward to the due diligence period, you can expect your attorney to contact you and explain the next steps.