These questions raise some flags in my mind in regards to this transaction which I will go over momentarily, but to answer your question - you can make the contract anywhere, and you will transfer title at the County Recorder's Office.

Now with that said, there is more to selling a homethan agreeing to a price, writing a check, and transferring title - namely proper disclosure of the property and its condition. Many people do not realize that when they buy a piece of real estate they are buying any and all deficiencies associated with the property. This is an important point to grasp, because if the old owner has been dumping crude oil in the backyard for the last ten years, and you buy the home - you are now responsible for the environmental clean up (an extreme example for a residential property, but all too common on commercial lots). Problems such as this one require complete and accurate disclosure something many for sale by owners do not know they must do.

In addition, it is always a good idea to make sure you are buying the home from its actual owner. There have been many recent scams (2009) in which buyers have bought or rented distressed properties from who they thought was their owner, only to find out it was a conman selling a bank owned home and running with their money. Getting a preliminary title report, and following it up with a title insurance policy is going to be the research and protection you will be wanting. To get title insurance you will need to talk to a title insurance company, which will probably instruct you to speak with or open escrow to get their policy. To open escrow you will need a fully executed purchase contract. You could find this online, or make one yourself - but keep in mind this along with all the disclosures and being able to negotiate price is where real estate agents shine.

Be careful if you elect to move forward without an agent, protect yourself, take as much time as required and don't be rushed by the seller. Get property inspections, and an appraisal - even if you are paying cash, and don't be afraid to seek the professional assistance from an escrow officer. 

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You should obtain the services of a local Real Estate Attorney to provide you with the Purchase and Sale contract, the transfer of title, and the Title Insurance Policy.  You need to obtain a Title Insurance Policy to insure that the person transferring title has the proper authority to do so, to insure that no-one prior to this owner has a claim to title on this property, as well as protecting you against any fraudulent conveyance.  

If you are financing this property through a mortgage company or bank, the mortgage company or bank may provide an attorney to conduct the mortgage closing and they will require a lender's title insurance policy to protect their interest in the home as collateral.  

When obtaining Title Insurance, you have the option to obtain an Owner's Policy, in conjunction with the Lender's Policy.  The Lender's Policy only protects the Lender in the event of a claim of ownership by someone other than you.  The Owner's Policy protects you, should someone have a claim that the title remains in their name, and that there was a fraudulent conveyance somewhere in the chain of title, you will be able to recoup the money you lost as a result of this prior fraudulent act or error.  The Owner's Policy will cost you a little more, but it is well worth it considering that the Lender's Policy only covers the lenders exposure on the mortgage, this does not take into consideration your down-payment and any subsequent value you have created in the home, via renovations, etc.

Remember, this Attorney that the Mortgage Company or Bank recommends represents that Mortgage Company or the Bank, as it relates to the mortgage signing or closing, so you will have to engage this lawyer to provide you with the contract and title services for an additional and separate fee.

Depending on the state in which you are located, an Escrow Company may provide similar services, or they will be able to recommend an attorney that is reputable in that particular area that will be able to assist you in providing the contract and deed.  It is very important that you do not attempt to create the contract and transfer title without the assistance of a professional.  In today's economy Real Estate fraud is a big concern, and you will want to be sure that you take all necessary precautions to protect yourself, especially when dealing with such a large asset, such as a house.

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