Hello everyone, just another question for you experienced REI’s. Lets say you find a great deal on a property and have the seller sign an option to purchase real estate, and say I wanted to just flip the deal/assign the contract to another investor to make some quick money, what binds the seller to not sell the property to anyone else? What would stop any other investor or buyer from jumping all over my deal?
Your purchase agreement should stop the seller from being able to sell the property to anyone else or to sign another purchase agreement for the property.
The verbage in your Option contract would stop the seller from trying to sell their property to anyone else other than you. This is done by “first right of refusal” to buy the home. So your option would basically state that YOU have the option to buy but not the obligation to and also you would be first in line to buy the property and/or pass on it. If your option or contract does not specifically state this then the seller still reserves the right to sell the property to the highest bidder.
REIMan & blueboxer -
Correct me if I’m wrong but the only way either of your answers would apply would be if the L/O was recorded at the Recorder’s Office before the seller’s “other buyer” recorded their deal. It’s a race to record any contract. First one there wins.
Again, if I’m wrong please let me know. It may save me some money in recording fees.
Thanks & Good Luck!!
As soon as you get the L/O contract signed that’s when you would record your option. If structured properly your seller should not be attempting to go behind your back and screw you over that way. You should be a “god send” to your seller or it’s not truely a Win-Win situation. You should be providing relief or a solution to their problem.
It should never be a race.
hope that helps.