He who sells what isn’t hizen… - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on September 20, 2003 at 14:44:06:
…must either pay or go to prison.
Rachel, we often refer to selling before we buy as being the best way to go. But what we really mean is to find a buyer for the property you are considering buying to flip, before you actually buy it. I would never sign a contract to sell something I don’t own or control yet, through a contract or an option. If you fail to be able to buy it for any reason, the person who you signed a contract with to sell it to, could sue you, big time.
One thing you could do is to sign a contract to buy the property and then just flip the contract to your buyer. The drawback to this is that your buyer knows how much you contracted to buy it for. The good thing about this way is, of course, that you don’t need any money, beyond a deposit of $1-$100 or so.
You also could sign a contract to buy, with a good weasle clause in it, such as, subject to the approval of my husband, wife, attorney, etc. Then you could sign a contract with your buyer, and even take a downpayment from him if you wish, with less likelyhood of being sued. There is STILL, the possibility that the person will default in his agreement to sell to you though. In that case you would still be exposed to potential liability from your buyer, UNLESS you put a weasel clause in your contract with your buyer saying something like, subject to your being able to deliver good title. When he asks what that means, just say, you don’t know but someone told you to put such a clause in your contract.
Please note that I am NOT an attorney. This is provided as general information only, to illustrate how similar problems might be solved, not what you should do in your case.