Posted by chris on July 17, 2002 at 17:15:37:
thanks to both of you for the excellent feedback.
stacy, that’s what i was getting at. i am speaking about the purchase and sale agreement. i knew there was a simpler approach used by others.
recording contract – giving away your price??? - Posted by chris
Posted by chris on July 17, 2002 at 09:25:22:
i recently recorded a contract for a bargain i picked up after months of working with the owner of a boarded up house.
i’ve got it under for 30k, fmv 60k. about a week after i recorded the contract, i got a call from another investor who looked up the property at the courthouse and found my contract.
he really wants to buy it, but my problem is he knows how much i paid for it because it’s right there on the contract. i feel like i put myself at a negotiating disadvantage by recording it. what do you think?
my question is, can you record contracts without the price? or can you record some other document that doesnt give away the price but still offers you the protection of recording?
and while we’re at it… i’ve heard different accounts of whether recording REALLY doest prevent the title from being passed to anyone but you. does anyone have any real, true experience of being saved because they HAD recorded something?
thanks in advance for any and all feedback…
Whoops… I misread your question… - Posted by JT-IN
Posted by JT-IN on July 18, 2002 at 08:12:10:
Chris:
As you can probably tell by my answer below, I misread your question, infusing “Deed” in place of “P&S agreement”. However, from a personal perspective, being a principal to appx 150 RE purchases, I have never recorded a P&S agreement.
Stacy gave the info as to how to protect that proprietary info, with the Affidavit.
Sorry for the misinformation / over-information.
JT-IN
Re: recording contract – - Posted by Stacy (AZ)
Posted by Stacy (AZ) on July 17, 2002 at 12:41:44:
If you’re speaking of the Purchase and Sale contract, I never record it. Instead, record an Affidavit and Memorandum of Agreement to cloud the title and protect your interest. It’s not 100% guaranteed that this will stop any other buyer from going around you, but it’s probably just as good as recording the P&S contract itself. You don’t have to state your buying price in the memorandum. It’s what I use.
There’s a free copy at www.legalwiz.com
recording contract – giving away your price??? - Posted by JT-IN
Posted by JT-IN on July 17, 2002 at 09:46:54:
Chris:
What can be done to prevent, or at least shield the view of disclosure of your price is to double record; using two different entities. The firs deed to say XYZ Land Trust would contain the price you paid for it, the second deed to ABC Land Trust would be a related sale, containing no price, and being an Affidavit transfer. The most recent sale is what is in plain view of most folks looking up the data. ind of like going around the block the way to get to where you want to be… obviously, you must check with local recoding and assesor rules as to how this must be done in your county and state.
As to whether to record or not, if that is your 2nd question, of course you must record to protect yourself. Let’s say that you leave the deed in the filing cabinet until you sell it, then do a double recording, and in the mean time the former owner gets sued… you then have a big problem. The date of the deed is irrelevant in this case. what is relevant is the recodation date of the deed, and if this comes after a new lien recorded against the old owner, then the lien is collectable to the RE… that you think you own. Not a good idea at all. Many, many, better ways to protect or disguise the sale price than this.
Now, with that said, in certain cases I do not record a deed until I sell the property. Then when it sells, I double record the deed, both mine when I bought it, and the new buyers deed; (or I should say the Atty records these deeds). The nly time that I do this is when I have bought the property in foreclosure. There is some built in protection with a foreclosure, due to the Les Pendens. Any liens of actions filed against the former owner, following the filing of this lawsuit, are mute, and uncollectable. This is the only way not to record; otherwise, get tot he courthouse quickly, to protect your property rights.
Just the way that I view things…
JT-IN