For the modern-day car enthusiast, especially those dealing with rare and collectible vehicles, understanding earnest money contract samples and their sample templates will be an incredibly valuable tool. The world of rarities, especially for car enthusiasts, is a wondrous yet tumultuous place, to say the least. For example, take a look at the legendary Buggati Royale for instance. Famed as one of the most exclusive and rarest cars in the world, only six original models were ever constructed. It would take a great deal of earnest money to win a deal for a vehicle like that-and without the right type of earnest money contract, a car enthusiast could easily lose out on the chance to even make that kind of badge collection. At Specialized Vehicle Solutions, not only do we have a passion for rare and celebrated vehicle vehicles, but we are also passionate about ensuring our client’s best interests with regard to their investments.
Contracts have always been a large – and in some cases, confusing – part of the equation, especially for first-time buyers and sellers. Here is a closer look at how understanding the various types of earnest money contract samples can benefit the life of a car enthusiast and more importantly, those dealing with high dollar collectible cars. Anyone who has ever been interested in or invested in a rare car knows that the cars that are available for sale are so different from most that you can’t just hop online, do a few simple searches and find one that is comparable to your make and model. This is where earnest money is different from other types of contracts signed when making a car purchase.
When dealing with rare vehicles, and in many cases, when dealing with classic cars (ugly-duckling status aside), an earnest money contract does not see its use until the car enthusiast has found a potential match. Then, once the buyer and seller have settled on the price, an earnest deposit is made to lock in the deal until it can be officially finalized. In almost all cases, the deposit would be held be in escrow by a mutually agreed-upon third-party agent. Both the seller and the car enthusiast would be given the contract terms for approval before agreeing to sign. In most cases, the deposit made by the car enthusiast will have a fixed period in which the full transaction must be completed, or else the deposit is either forfeited or returned (depending on the circumstances).
In a regular transaction, the contract negotiation and signing process is usually as simple as meeting with the other party and a notary public. However, when dealing with vehicles of high value, it is generally in the best interest of the buyer and seller to utilize a professional to not only negotiate, but draft the contract as well. With the right professional in your corner, you can avoid common pitfalls.
For more information on contracts and legal agreements, you can visit Wikipedia’s page on contracts.