Posted by Demetrious on October 21, 2003 at 14:42:47:
Thank you VERY much for your help, Randy! Sending him the finished contract now.
Take care,
D.
Pushing my first deal through - Posted by Demetrious
Posted by Demetrious on October 21, 2003 at 12:00:55:
Hi,
Right now, I?m trying to tie up some loose ends. The seller wants a non-lien clause in the paperwork, but I need to ensure he doesn?t sell the place out from under me. I know that there?s a way to record a mortgage on the property, but I?m not sure what I would need. Basically, I?m not sure what to tell my seller regarding his non-lien clause. He?s pretty anxious to get this deal going, and the only thing standing in the way of that is that clause. However, he doesn?t know it?s an issue yet. I wanted to know exactly what I was talking about before approaching him with it. I?d also like to revise my other contracts to include this information, along with future contracts.
Any advice would be greatly appreciated.
Thank you,
Demetrious
Re: Pushing my first deal through - Posted by Stewart
Posted by Stewart on October 21, 2003 at 17:02:21:
If anything but a sub2 deal, what about putting the completed deed in escrow along with a quit claim deed from you (and instructions per contract)? If you take option, you get deed, if you don’t, the quit claim ensures no right to property. I read this somewhere, might have been a Brochnick suggestion also, not sure.
Re: Pushing my first deal through - Posted by Randy (SD)
Posted by Randy (SD) on October 21, 2003 at 13:16:48:
If the seller is anxious to sell and all other terms of the deal are agreeable to both parties ? what?s the problem? If you make a purchase agreement with the seller and secure it with an earnest money deposit, you have a contract.
If you perform to the terms of the contract and the seller does not ? you have grounds for a suit. The performance mortgage described in your 2nd post is in violation of the seller?s agreement, I don?t think he will agree to it, and most likely you don?t need it. If he sells it out from under you sue him and go find another deal.
Re: Pushing my first deal through - Posted by Demetrious
Posted by Demetrious on October 21, 2003 at 12:31:32:
Just wanted to clear up some things.
Basically, this is what the seller wants in the contract:
MECHANICS LIENS. Neither Tenant nor anyone claiming through the Tenant shall have the right to file mechanics liens or any other kind of lien on the Premises and the filing of this Lease constitutes notice that such liens are invalid. Further, Tenant agrees to (1) give actual advance notice to any contractors, subcontractors or suppliers of goods, labor, or services that such liens will not be valid, and (2) take whatever additional steps that are necessary in order to keep the premises free of all liens resulting from construction done by or for the Tenant.
By “fees and services” I mean giving my seller enough breathing room to bring in a retail buyer to buy the property out from under me. I was basing this off of an article I read by William Bronchick over at CREOnline that reads:
“Record a mortgage. Typically a mortgage is recorded to secure payments on a promissory note. A mortgage can be recorded to secure performance of any agreement, even a purchase option. You as optionee (buyer) will now be a lien holder, in the same position as a secured lender. If the seller refuses to sell the property, you foreclose. Now the SELLER has to go to court to protect himself, rather than the other way around.”
Thanks, again,
Demetrious