I went to the lawyers office on tuesday and he supplied me with a contract of sale which they use in my state and i notice some words that benifits the seller not the buyer and also the contract says “NO ASSIGNMENT”. My question is can i change some of the wording in the contract? and also when i do a double or simultaneous close do my contract have be assignable? or can i use my buyer funds to close the deal with my seller first and then close with my buyer?
I need to know asap thanks for the help…
When you have two closing you will have two contracts and therefore assignment is not an issue. You are just agreeing to buy with one contract and sell with another and closing on the same day or closely. In essenance you can close the buy side first into escrow and then close the sell side where you sell the property or you can do the sell first and then the buy. Usually it is done close to the same time and sometimes at the exact same time in different rooms.
You can change the contract as much as you want as long as the other party agrees to the changes. Some banks and REO’s will not agree to assignments and actually have their own agreements to add to the contract that futher prohibits assignment.
Hope this is early enough to be of help to you
Merry Christmas tomorrow
Two more questions… What if i retype the whole contract and just adjust a few words so when i present to the seller in wont be a issuse about them agreeing on the changes…can i do that? and aslo when you said “When you have two closing you will have two contracts and therefore assignment is not an issue.” do i need two sale contracts one with the seller and the other with my buyer or do i just need the orignal contract with the seller and get an assignment contract for my buyer?
thanks i hope i didnt confuse you…
You can use any contract you want . Most use the standard contract the Realtors use. I do not know what your attorney gave you. You may look on line to find the forms used by agents in your state.
An assignment is an assignment and requires only one closing between the folks you had the property under contract with and your buyer. No need to have two closing and two contracts.
If you are flipping the property for a large amount of money you may not want the two parties to meet and hense you would use two contracts and two closings. You could use the double closing even to make a few hundred but it would be a waste. The double closing costs are not much more than one closing maybe only a few hundred more for the double escrow fees.
Hope this helps
So in my case since my contract is not assignable i will have to do a double close correct?
You can change the contract and strike out the not assignable part or leave t out if you retype it unless your seller objects to the contract being assignable. If the seller objects then you will have to do a double close.
If it lawyers is involve do both the seller and the seller lawyer have to agree on any changes or just seller can agree???
You will probably not have much luck getting the seller to agree to something his attorney is against. The seller is certainly able to agree to whatever he wants but if the attorney says not to let the contract be assignable the seller will probably agree.
In my state NY the attorneys only do the closing, so if i give my attorney money to hold in escrow and i want to assign the contract how would that work? do my end buyer have to use my lawyer or can he use his own laywer??
I am not sure what it is like using attorneys to do closings. Here if the seller is buying the insurance they generally pick the title company. Also REO sellers usually have their favorite title company as well. The buyer most of the time will just not even care and deal with the sellers choice. It is still negotiatable but most often the seller will get the choice.
In your deals you probably will get to choose as the buyer but may be at your sellers attornet doing the deal and your buyer will be there too. This is pure conjecture on my part. Maybe some other members will add from there experience to your question.