It is said that your first step in Short Sales is to “get the deed” as soon as possible. From my research, I have learned that California law requires contracts between Equity Purchasers and Equity Sellers to disclose the following CANCELLATION clause:
"Until your right to cancel this contract has ended, _____(Name
of Equity Purchaser) or anyone working for _____(Name of
Equity Purchaser) CANNOT ask you to sign or have you sign any
deed or any other document". (Cancellation period is 5 bus. days)
Ostensibly, said clause might make getting the deed challenging for an investor, as buyer/seller remorse might set in after a few days.
WHAT I WANT TO KNOW:
1.) Does this present much of a problem for you?
2.) How are California investors creatively dealing with this requirement?
Your assistance with these questions is greatly appreciated.
Section 1695 of the California Civil Code mandates a 5 day waiting period when doing an equity purchase. A short sale by definition occurs when there is no equity. Thus the waiting period shouldn’t apply.
if you are going to do equity buyouts in Calif., you need to know CC sect 1695 very well as it applies to buying from any buyer who is in foreclosure.
you might consider to spend some time over at www.foreclosureforum.com (not my website) as there is a wealth of knowledge over there (a lot of specifically about preforeclosure purchasing in Calif.).
In california if the above applies you as an investor can not be represented as a buyer by a licensed RE agt. (a Riverside,Ca judge upped the ante and said if the NOD is served anytime from start to finish 1695 applies.)
i hope this helps
PS: the RE agts in california are instructed to only use the NOD Purchase Agreement for the above (especially shortsales)
In california if the above applies you as an investor can not be represented as a buyer by a licensed RE agt. (a Riverside,Ca judge upped the ante and said if the NOD is served anytime from start to finish 1695 applies.)
i hope this helps
PS: the RE agts in california are instructed to only use the NOD Purchase Agreement for the above (especially shortsales)
Yes. All of the four line items above apply. I have no intentions of seeking the assistance of a licensed RE agent to conclude this transaction. I intend to follow through on the SS process myself.
I am, however, having a problem determining which Purchase Agreement contract is the most adequate for a Short Sale deal.