Posted by JohnBoy on February 22, 2002 at 23:06:16:
The only time I’ve ever had a problem using MY contract was when going through an agent. So I took MY purchase contract and instead of saying purchase agreement for real estate on top, I just changed it to say ADDENDUM TO REAL ESTATE PURCHASE AGREEMENT.
Then I just attach that to any contract they want to use. My addendum overrides any contract they use so it doesn’t matter to me! So far that has never been a problem. They’re just happy as long as their contract was used! OK, whatever! LOL
Posted by B Dixon on February 22, 2002 at 14:23:55:
What’s the best situation to use assignable contracts? I’ve tried them with regular sellers (novices) and they won’t go for it. Their lenders, and listing agents advise them not to accept these types of offers. Does anyone have any experience/advice for dealing with this type of offer? How do you get the seller to accept? In what situations/sellers are these best for?
So far I haven’t had any problem from sellers or RE agents with my assignment clause. The situations I’ve had so far, have been unusual,( requiring fast cash or alot of cash, for example, so I simply explained to the seller that I can’t do the deal alone but can work with a parnter on it - I include in the Purchase agreement an assigment clause - “Buyer shall have the right to assign this contract to another buyer or Partner” and a contingency - "Buyer shall have the right to inspection and approval of the property but Buyer’s partner/assignee. " Since i tell everbody upfront what I am doing, there is no problem (I don’'t say I am flipping the propery, just that I don’t want to do this deal on my own, etc) I am not a lawyer, so check this out before just copying me. Also, if anyone notices that I am doing something worng - I 'm be glad of the feedback!
Check your state laws regarding the wording of the contract. Here in NY, if a contract (like mine) leaves out any mention of the assignability of it, then it IS assignable. I never make any mention of it to the seller or the agent. I ALWAYS use MY purchase contract. If the seller absolutely refuses, then I will pass on the property. Hope this helps.
Posted by Brent_IL on February 22, 2002 at 17:03:14:
I bury the assignment clause on the back of the contract. Since the time that the seller has to make a desision is short, no one gets around to reading it.
Posted by KC Questions on February 22, 2002 at 16:54:26:
I read a post a few days ago that said you can name a trust as the buyer on the purchase contract and then you can assign the beneficial interest of the trust. I have never tried this personally but it seems like a great idea to me, since you wouldn’t have to get anyone’s approval to allow you to assign your contract. Maybe someone who has firsthand experience with this method can elaborate a little more on it.
Posted by Scott_AZ on February 22, 2002 at 15:41:50:
Conventional Lenders and sellling agents typically do not do assignmets. One way to get around this is by doing a double-closing, instead of an assignment. You can set up the settlement such that both closings are done-one immediately after the other. This will accomplish essentially the same thing as the assignment, although there will be closing costs involved, so you will need to structure this into your offer.
You might have better luck doing assignments with a motivated FSBO. They are more flexable, and probably more willing to go the assignment route.