Can someone tell me specifically how these contracts would work as purchasing then assigning, or purchasing then not being able to assign it. Still got this fear in the back of my head of getting stuck with a house. ahhahahaha
Q#1:So lets say I got a house under purchase contract subject to final inspection on closing day. Now do I HAVE to put “and/or assignees” next to my name, or can i just have a section in my contract stating “buyer may assign this Contract and be released of all liability” ?
Q#2 Say my buyer backs out and decides not to buy it. What do i have to do to have this contract canceled? or do i have to do anything at all, and the contract will cancel by itself? who do i have to call and what do i have to do.
Thanks again
You don’t have to be afraid of a deal falling through because it’s a fact. It will happen at some point, it’s just a part of the business. Everything won’t go right all the time.
If you make your offers with the earnest money deposited at the release of the inspection contingency then you shouldn’t have to worry about getting stuck with a house. If you don’t have a buyer near the end of the inspection period then you just tell the bank in writing that you didn’t approve of the house in your inspection of the property and the contract will be cancelled.
I do believe you should have a plan for closing with a loan at least in your exit stragies. It’s up to you whether or not you feel it’s suitable to do.
Also remember if your buyer backs out after your inspection period you could loose your EMD.
So make sure you get a non refundable deposit from your buyer up to or over your EMD.
So your not :bobble TWICE.
Actually the way that the deal is structured, your EMD is supposed to come from your buyer. If you don’t find a buyer then you tell the bank that after your inspections of the property you don’t approve of the property and you won’t be moving forward.
I believe however you should know of other investors who have money and would be willing to partner with you in exchange for them putting the earnest money up for you. This will keep you from backing out of too many deals.
Bashir,
How are you supposed to collect the EMD from your buyer if once your offer is accepted you have to provide EMD within a few days??
And if you partner up with other investors how does that prevent you from backing out of too many deals?
Cuz I can see that happening if you don’t find a buyer within the inspection period.
yea when would you collect the non refundable EMD from you investor?