There are tons of credit reporting services online…I wouldn’t be that concerned about the cost at this time. Actually, I would just choose a local one from the phone book and use 'em.
2)LAME! Take all the money and you have a locked in buyer. Take part and you seem wishy washy. Why in the wolrd would you not take ALL of the money? It prevents at least 100 things from happening that I can think of, none of which are good.
Liability suits from the t/b?!?!? Hmmmm, I think as long as your contract is in good shape, your insurance is clear and all the expectations are defined in writing before entry into this, you should be okay. I have never actually thought about a liability suit froma t/b as all that stuff is spelled out in my contract.
Well, I’m moving my way through what looks very much like my first sandwich L/O deal(not counting any chickens until I deposit the $$ this time), and since I’m doing many things for the first time, I’m feeling occasionally confused, disorganized, etc.
First, I’m sorry to drag this tired topic out again, but I can’t seem to dig up where I wrote the name of a good cheap credit reporting agency. Piper told me he has one that only charges $8. Thanks a bunch.
Second, how do people out there handle option consideration on a L/O where the tenant/buyer can’t move in for a while? The place in question is available August 1st and it looks like I’ve got a potential buyer lined up now. I’m asking for $4500 in option consideration. It seems a little unreasonable to ask for all of it now. $1K now and the rest on move-in? I mainly want to protect myself against coming out of pocket a month if this guy bags out at the last minute. $1K would cover that. Sound reasonable?
Lastly, what additional liabilities does my seller face now that there will be a tenant in his home? Will his insurance cover potential liability suits from the the tenant? Does he need to inform his insurance company about the change of status of his home (he’ll already be calling to name me as an additional insured)?
That’s it for now. I’m sure I’ll have more questions in the coming weeks. By the way, I found this T/B on the first day I advertised the place. And I was worried I was asking too much! Next time, I go higher…
Get your option consideration in certified funds,no checks. If they change their mind you will be looking at stop payment or insufficient funds problems. Worst case is if something changes you can give back what you weren’t damaged for until you got a new buyer.
You can call Northland Services?.I think it’s now $9. 816-741-9292. The owner’s name is Richard. They have an 800 number but I don’t happen to have it.
Collect your entire option consideration at the time of signing the documents?.which should be now. If you don’t, you will expose yourself to a situation where the tenant/buyer backs out at the last minute. I would allow him to pay the first month’s rent just prior to his move in. If this buyer doesn’t have the option consideration now, I would keep marketing until you find someone who does.
The owner will need to change his policy to a landlord type policy?.which will cover fire and liability, but not contents. If the concern is liability, getting additional liability is quite cheap. The tenant will need to get a renter’s policy to insure their own contents?it’s very cheap.