Can you lock up a short sale that is listed with a realtor, And sell it to another cash investor? Is it legal in the state of california and if so what contracts would I need? Thank You so much I really need the help!
Joe
Hi,
Yes, it's called a purchase contract and a bank approval letter!
And yes, you may sell it to another investor by using a purchase contract after you have the legal position on your first contract!
Yes buying and selling real estate in California is legal!
First transaction is “California Board of Realtors” contract. (Realtor represents seller and potentially you, if you don’t have a realtor.)
Second transaction can be any contract or escrow instructions signed in a escrow company office.
Your quite welcome.
Good Luck,
GR
As a California Broker and Investor I would not use just any contract to sell and buy…
Because you create equitable interest once you secure the right to buy a property you have the right to resell the property unless the agreement you used doesn’t allow you that right…
Also don’t worry about putting or assigns on the buyer line… That is a granted right as well unless the agreement says otherwise.
As for reselling heck the MLS rules are very clear, you as the seller have the right to insert the property into the MLS…
Good Luck
How’s liability transferred? If the new buyer as an investor goes for purchase contract how much liability remains for the old buyer? Any comment would be helpful. It’s good to see people from California.
Try using this
ASSIGNMENT OF CONTRACT
Seller
YOUR COMPANY.(hereinafter “Assignor”), the Buyer under an agreement dated THE CONTRACT DATE (hereinafter “Agreement” by and between Assignor and THE ORGINAL SELLER (hereinafter “Seller”), hereby assigns all right, title and interest in said agreement to PERSON YOUR SELLING TO (hereinafter “Assignee”).
We (husband / wife), on the one hand, and Assignee, on the other, agree to follow through with our respective obligation and terms of our Real Estate Purchase Agreement, which was signed on (date). We, (husband / wife) further agree to hold YOUR COMPANY harmless of any actual, potential, or threatened litigation, lawsuit, and or dispute arisen out of the Real Estate Purchase Agreement signed on (date). We agreed to indemnify YOUR COMPANY of any damages, lost, cost of litigation, attorney fee’s, and any other expenses in connection with any litigation and /or dispute arisen out of the breach of this agreement.
It is understood and agreed that this agreement applies to all known and unknown claim of lost and we, (husband/wife) waive all right or benefit that we may have or in the future may accrued under Section 1542 of the Civil Code of the State of California, which section reads as follows:
General Release: Claims extinguished.
“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor.”
These instructions may be executed in counterparts, each of which shall be deemed and original regardless of date of execution or delivery and together shall constitute one and the same document.
Accepted and so instructed:
Dated this NUMBER day of MONTH, YEAR
YOUR NAME, POSITION
YOUR COMPANY
Assignor
Seller