Posted by David Garcia on July 12, 2002 at 17:03:55:
How much did you agree to buy from the original owner?
Whatever that amount was, you can sign a contract with him that you’re gonna buy the home from him for that amount but put a clause stating that you can assign someone else in your position for the same or more. If its for more, then seller will give you the difference.
Once you have that contract signed, you just have your end buyer sign a contract with original seller.
Documents needed are: 1. Contract between you & seller
2. contract between you & buyer
3. assignment of contract
I lease optioned a property last 11/01/2000 for 275k
and put a tenant buyer in the property. He called me this morning and said he will exercise the option price of 300k.
He was asking for a purchase agreement or sales contract since his lender need it to process the loan. He said he need a purchase contract for 300k because his lender will approve him of the purchase price.I told him about the lease option contract we had, but said the lender need a purchase contract period.
I am not in the title of the property sice I lease option it from the previous owner. Can I really execute a purchase contract to the tenant buyer even the title is not in my name? Will the lender is particular to the name of the owner of the property that they are financing?
This is my first simultaneous closing if ever this will push trough.
Please help me!!! Seasoned investor out there.
I take it Maria, that you didn’t have this exactly sorted out upon the entering of the contract.
If your contract with the seller is and/or assigns, then you can have the buyer close on that contract with an assignment form. If you want to do the simultaneous close, then you will create a new contract between you and the buyer for which you will close on your purchase with the seller, and then you will close on your sale witht the buyer. IE. 2 contracts.
Check with the buyer’s lender on which way to proceed. Assignment will be cheaper in costs and fees, but that depends on how you word the contracts for who is paying all the escrow fees.
