I am currently in the process of doing paperwork for an option to buy a home worth about 85,000 for 67,000. HAve some questions. Metro Detroit Area.
Should I use a simple purchase agreement rather than a option contract. And where would the simplest purchase agreement be? I heard people say to use a skinny contract or simple pur/agree is this the best.
What time frame should I give the option?
Do I need to record the option, i have read multiple reasonings on this and want to know if i should record it or protect like B. Zick says, Secure your option or notice of option by recording it with a deed of
trust or mortgage.
I would like to sell this property not lease option, and i am offereing cash back at closing what else do you think i should offer and how should an ad look to get this home sold within 45 business days or so?
Just started so dont have extensive buyers list this guy called us up from an ad and wanted to know what we could do becasue he was living out of town so we came up with a solution just dont want it to slip through our hands we know we can sell but with the season coming and winter here want to make sure we keep the deal alive. As I said offereing cash back seems like a good idea. Any other thoughts?
by the way when doing subject 2 is it best to let a title company control the deed as oppose to telling someone sign over your deed you tell them the title company will control the deed until you are cashed out. Then you dont have to worry about subject to.
In your situation I would use a standard sales agreement that is used by your local Realtor association. They are easy to find and are familiar to sellers, closing agents etc. You can get them at title companies, Realtor friends, on line at your local real estate commission. The Texas forms are at TREC.com as an example.
Under normal circumstances it is not necessary to record your earnest money contract. If you believe the seller to be a snake then you may want to protect yourself. Anything you record will place a cloud on the title. Something called a “Memorandum of Contract” will work or even title it “Notice Affecting Real Property”. Anything that lets the world know that you have an interest in the property. It will have to have the legal description and be notarized to be recorded.
As far as your sub2 question title companies are not eager to get involved in holding deeds in escrow. The actual recording of the deed will not send up red flares to the lender and they are not looking for ways to foreclose on property. If you need the deed escrowed then you may be able to hire and attorney to do it for you. It is a bad idea in my opinion. There are a lot of what if scenarios that could arise like: IRS liens, lawsuits, etc against the seller in the interim that would cloud the title. A seller in trouble is usually in trouble on several fronts and not just the house payments if you are buying a preforeclosure for instance.