Hi, All! I’m new to this site and I have a contract wording question. I understand the adding of “and/or assigns” next to my name, but if I don’t know who will be the assignee at the time of my offer to purchase, do I make the offer as a “cash w/ new mortgage”, or should it be “cash”? This is a very serious question because if I use “cash w/new MTG”, then I must use my credit and money to qualify, right? and if I use “cash” I must be able to produce the assignee in order to NOT get stuck with the offer, am I right?
I don’t want to sound fearful, I just want to keep my back covered. If you have any advice, I would luv to hear it. This one has me stumped. Most offers only give you 3-5 days to have an inspection, so that’s not a safe enough “exit” for me, and it would just be wrong to wait 20-30 days and then say that “My partner doesn’t approve, so, no sale!”
How do I work this?
Biggbird
Hello, Again.
Really need some help!. I got a property that has about 50% equity, at least, and I really want to move on this listing before someone else finds out about it!!!!!! Please help. Thank you.
Typical contract would read
John Doe and/or it’s assigns.
The conditions of the contract i.e. cash purchase, subject to inspection, subject to buyer obtaining financing etc, etc. etc. are the terms which allow the buyer to move forward with the purchase or not. If you assign the contract - your assignee is restricted to those same terms you set forth.
You could take a contract on it subject to you finding a buyer within x days and let the seller continue to sell it on open market. This doesn’t hurt the seller in any way since he is not restricted.
You could lengthen the inspection time to 15 days.
The idea is tie the property up to give you time to do whatever you need to do.
Thanks for your reply, that helps a lot. I was told that seller’s agents really don’t like assignments because there is nothing solid in it for them. That info make a win/win for everyone. I believe that I can make my offer with confidence, now knowing that I am not treating the seller wrong. Thanks a billion!!!
Sounds like you are looking at an MLS listed home.
If your numbers are even close to right, then it is also probably a REO (that’s real estate owned) property. In other words, a bank or lender now owns it.
If that is the case, then you need to rethink your whole approach because a bank will NOT accept a “and/or assigns” contract, period.
Banks are VERY conventional and will only deal with conventional offers. Putting in clauses like “subject to partner’s approval,” “… to finding a buyer,” “… to winning the lottery,” etc. will only assure that you do NOT get the property.
The less contingency clauses the better. You can get away with a financing clause or maybe even an inspection clause, but not much else and actually expect to get the contract.
Finally, if this is a MLS listing and it does have 50% equity, it won’t be on the market long.
Raj
This is not an reo, The seller las lived in this house since the 60’s and wants to sell due to a death in the family. Too many memories. So I am going to make the offer today and expext the best, but be prepared for the worst. The worst will be that they say no.
"Every no brings you closer to a YES!!!!!!!!!"
-- Unknown
BiggBird