When buying subject to - Posted by Molly

Posted by B.L.Renfrow on October 31, 2000 at 08:38:53:

You may want to think twice before you add that clause.

When I buy subject-to, I typically will go ahead and sign the P & S early-on. I will then perform the usual due-diligence stuff. More than once I have found undisclosed liens, second mortgages, etc which the seller “forgot” to mention. I have also had to terminate a deal because of it. The last thing I would have wanted was the seller trying to force me to go ahead and pay their arrears.

I make it clear to the seller that the deal is not “done” until I record the deed into the trust. And you can be sure I’m not paying a penny of the arrears until I know the state of that title. So you can see why it might not be a great idea to be obligated to make up the back payments before you’ve had the chance to investigate fully.

What I tell the seller is that I WILL make the back payments AFTER I (and sometimes my attorney also) have checked out everything to my satisfaction AND have determined that everything is in order.

Brian (NY)

When buying subject to - Posted by Molly

Posted by Molly on October 31, 2000 at 24:41:32:

Where at in the purchase and sales agreement does it state that we as the buyer will make up all back payments? It is not on the agreement from bronchicks site and I like that format. Should it be added to the agreement or on an attached addendum?

Thankk you guys