Response to ad - Posted by annette

Posted by Stacy (AZ) on February 03, 2000 at 15:40:12:

You didn’t rile me at all, and I’m sorry if my anger at my sellers leaked-out and came across as anything against you. Not at all.

NEXT!

(smile)

Stacy

Response to ad - Posted by annette

Posted by annette on February 03, 2000 at 09:43:20:

Thank you to those that gave advice and encouragement to me. I have placed the ad in the paper for an extended time and I did receive a call from someone who has cash on hand. My question for those who have done this type of transaction before, how do you handle the perspectives when they ask how long have you owned the property? I know that some people will try to go around you to get to your seller to buy at a cheaper price and others may not favor the transaction that you are attempting to do. How do you handle those type of questions when you do not own the home.

If the buyer has cash on hand, I know that it makes it a lot easier and quicker to close on the deal. Do I need to get in touch with my lawyer now with the signed contract from my seller or wait until I get a contract from my buyer submitt both at the same time and therefore have him to set up a double closing?

Your response is appreciated.

I also want to thank Ben from NJ who gave me the Carlton Sheets No Money Down Program, practically new with plastic still on the videos and books. I have already viewed two video tapes, read twelve chapters and even now at my desk I am listenting to the audio tapes. Mind you, this is all in two days of intense studying. My goal is to complete the manual by Saturday, get on the phone by Sunday, read and listen to tapes all over again while making other deals.

Mr. Ben your sacrifice and investment to me has and will not be waisted. I will be putting the check in the mail for the postage today. That is all it cost me for this program is postage. May the Lord continue to bless you and your family with health, long life and prosperity.

Much Success!
Annette

Re: Response to ad - Posted by Ed

Posted by Ed on February 04, 2000 at 05:41:22:

Natalie,
If your buyer wants the home and you know you have enough room to make the deal fly (Cash, Credit, Apprasial, what you are buying it for and selling it for etc.) get a contract with your buyer first. Then make your offer to the seller. This way you have both ends of the deal but you have your buyers first. Get your buyer contracted and then go see your seller the same day and get your contract signed. Then take your info to your attorney for closing.
As far as the buyer going around you, there is a reason that your buyer came to you instead a mortgage company. Find out what this reason is. The more you know up front the beter you can structure your deal.
If you have to worry about the buyer going around you, bow out and wish them luck.
Just my 2 cents.
"KTF"
Ed

Re: Response to ad - Posted by Annette

Posted by Annette on February 03, 2000 at 11:31:44:

Lawyer has my contract now!!!

Thanks

Re: Get the contract to your lawyer now. - Posted by Stacy (AZ)

Posted by Stacy (AZ) on February 03, 2000 at 10:47:44:

Annette-

Until you have given your lawyer the signed purchase contract, including earnest money, you don’t have a leg to stand on. A buyer could very easily go around you and you would have little recourse. You need to at least establish your interest, formally.

Stacy

Re: Response to ad - Posted by Ben

Posted by Ben on February 04, 2000 at 07:26:48:

How can you sell a property you don’t own? I can see controlling the property with a contract but to sell it to a buyer BEFORE you have a contract to purchase is fraudulent. Buy the property with contingincies in place, make sure your buyer can perform in the time allowed. Generally, my contracts to the buyer states " we may or may not have an ownership interest in the property." Disclosing this in the contract is very clear and unambiguous.

Of course, the other option is to assign your contract to the buyers for a fee.

Curious… - Posted by Carmen_FL

Posted by Carmen_FL on February 03, 2000 at 12:48:28:

I have not been following Annette’s story, but why would she have to give the contract to her lawyer to make it enforceable? Wouldn’t having the executed contract (both her signature and the seller’s) be enough to make it enforceable? I can see recording a memorandum to cloud title so they can’t get around you - but what’s the lawyer holding it have to do with it?

Unless, of course, you’re talking about the lack of consideration making it unenforceable - in which case I can see putting the consideration into an escrow account (lawyer, title co, etc.). In that case though - if I give $10 to the seller and get a receipt(not into escrow) - wouldn’t that make it just as enforceable? Any thoughts on this?

Re: I knew this would come up…(long) - Posted by Stacy (AZ)

Posted by Stacy (AZ) on February 03, 2000 at 13:31:45:

I guess I should have explained why I gave this advice. Here goes…

First, I think we need to agree there is the legally correct answer, and the “reality” answer. I think the reason I posted this reply is that I am going through this right now, and it’s close to my heart. All the contract law knowledge in the world will not help you if it’s not financially prudent to enforce that law. On most of my deals, and I think in Annette’s case, there is not enough money at risk to justify a law suit for specific performance. When it comes right down to it, even though the law is on my side, a buyer could go around me (or the seller in my case) and there’s not a whole lot I can do about it. I will not tie-up my time and emotions, put a lawyer on retainer, and risk losing a court battle over a deal like this. There’s always the danger that a judge will surprise you with a bad decision, when you were positive you would win.

So, my current dilemma is as follows:
I signed a purchase contract with a couple to buy their house a few weeks ago. I took the contract to my title company, with earnest money. Because my contract called for $100 earnest to be deposited with my title company, there is no contract until that happens. There are now “tracks” that can be proven…timelines, receipts from a third (uninterested) party. In court, OR UNDER THREAT OF SUIT, this receipt and time-stamp will be accepted as genuine, unforged documents…no questions asked.

I will NEVER give a seller earnest money. I just think that’s asking for problems. By the way, earnest money is not needed for a purchase/sales contract to be valid…unless it is called for in the contract.

So, in my case, my sellers have stopped returning my calls, and I have a strong suspicion they are double contracting, having found someone who’ll pay them more. Yesterday I recorded an Affidavit and Memorandum of Purchase Agreement at the courthouse. I sent them a friendly letter, which they should be receiving today, with a copy of the Affidavit, and a brief explanation of what it means. Also, I gritted my teeth and gave them a vote of confidence that we will close in Feb 15 as planned.

Will this action guarantee that I will buy this house as planned? Absolutely not. Even though I have done everything according to law, they could still find a title company that doesn’t give a hoot about the affidavit, and sell to a new buyer. What’s my recourse? Take on a court case.

What difference does it make that I gave my contract and earnest money to the title company if I’m not going to sue? If and when someone calls me about removing the cloud from title (I hope), I will be able to negotiate from a much stronger position if I have proof of my actions, especially if it’s from a disinterested third party. If no one ever calls, I don’t care. I’m off to make money on other deals instead of wasting time on this.

I hope this explains why I gave the above advice. I am not a legal expert by any means, and maybe my understanding is flawed. But, this is the way I choose to do, based on my understanding.

Stacy

Re: I knew this would come up…(long) - Posted by Nancy Cason

Posted by Nancy Cason on February 03, 2000 at 16:33:12:

Stacy please keep us informed of this deal. There is a lot to learn here. I am interested in what your sellers do next.

Regards,
Nancy

and… - Posted by Brandi_TX

Posted by Brandi_TX on February 03, 2000 at 15:39:06:

When they do come calling to get you to remove the cloud, you are in a position to get paid for simply signing a release.

Quickest… and most frustrating sum of money I have ever made.

Didn’t mean to rile ya… - Posted by Carmen_FL

Posted by Carmen_FL on February 03, 2000 at 15:25:13:

But thanks for the explanation. I was wondering if I was missing something. Like you said, if someone’s hellbent on going around you, it just ain’t worth fighting (especially if you have no $$ in it). But I guess it’s good to cover ALL bases (if possible and cheap!)

Re: Follow-up (I’ll be darned…) - Posted by Stacy (AZ)

Posted by Stacy (AZ) on February 03, 2000 at 17:19:28:

Gee, what interesting timing…

I just received a call from the sellers, who have just received my letter and affidavit. Seems their phone number changed, and they “forgot” to tell me. Still very interested in closing on the 15th.

Hmmmm. You tell me. Did it work this time, or was this all a big misunderstanding? Which ever, it’s interesting how many times in my life, when I decide to let something go, it returns to me. Wierd.

Wish me luck. I’ve already got a full-price buyer if this closes (actually several of them).

Stacy