I was hoping to get some advice. I am working with a seller of a 20 unit apartment building, after I sent him my LOI and some negotiations we came to an agreement. He sent me the contract, which has no clauses that protect me in any way shape or form, also what I found odd was that on the contract he has one business name and on public records for the property it has another business name. When I checked the business name he used on the contract it says its inactive since August 2013. Does this sound like a scam? Or is it okay to use another business name even if it’s not the name on record? My instincts tell me it should be the name on record. Please advise.
RULE #1 – Be honest with the seller about your concerns.
Call the seller on the phone and tell him what you know and ask for an explanation and tell him why you think it should be done differently, ex., so you don’t have to correct a costly mistake down the road.
If he insists it’s to be done his way, just tell him you need to double check with your lawyer.
If he refuses to let you talk to your lawyer and tries to hard sell you, that should be a sign that something is up and he’s hiding something material that will end up costing you a lot of money.
AND THEN, go talk to a real estate lawyer about having the contract properly done. You can get a free half hour initial consultation if you’re referred by the state bar, so there’s no reason not to.
I did speak to the seller and all he said was that he forgot to pay the $300 to renew and that he will renew it. But in regards to using that name versus the one in public records he basically totally ignored me. So I will definitely take your advise and go to my attorney. Thank you.
As Dave says…be very careful…all that glitters is not gold.