Little question - Posted by ES


#1

Posted by JPiper on February 24, 1999 at 18:59:34:

The contract is written in your corporation’s name…XXX, Inc.

When you sign the contract you sign Jim Piper, as President of XXX, Inc.

JPiper


#2

Little question - Posted by ES

Posted by ES on February 24, 1999 at 09:56:13:

Well, my question is, if I put in a contract on a house that I want to flip, and then assign the contract to another investor/rehabber, am I in the clear? Meaning if the investor/rehabber I assign it to totally responsible for the contract or will I be held liable if he/she decides to back out? Has this happened to anyone?


#3

Re: Little question - Posted by JPiper

Posted by JPiper on February 24, 1999 at 10:11:11:

If your assignee (the investor/rehabber) fails to perform, you may still be held liable by the seller…if you have not been released by the seller from that liability.

You need built-in safeguards to handle this…clauses in the original contract releasing your liability perhaps, a clause limiting your liability to your earnest money, or a contract written in the name of your corporation which will serve to limit your personal liability.

Has it happened to anyone?? That I can’t answer, but what difference does this make IF it can happen to you?

JPiper


#4

Re: Little question - Posted by ES

Posted by ES on February 24, 1999 at 14:36:10:

Thanks for the info. I have another question based on your answer. How do I make deals in my corporation’s name? I have heard something about signing your name and then putting “doing business as” at the end.