By tying up a piece of property, using a purchase and sale, am I OBLIGATED to purchase?
My intention is to assign a contract. If there is an assignment clause am I still obligated to buy?
I want to tie up property WITHOUT being obligated to purchase, even if I don’t assign.
This is what I’m getting at.
Thanks for everyone response!
It sounds like you want to have your cake and eat it too. Tying up a property usually involves putting up some money. If you tie it up with money and don’t buy it you generally lose the money you put up.
Good luck,
donrock
DONROCK
This is true i would think you would have done your due -dill on the property
Before you ever get to trying to tie it up
The poster is it sounds like trying to have the cake and the top of the line toppings with it
Check out the property very well before you try to tie it up
As in this time and place you could get in big trouble not doing what you have put to paper you would do or have implied you would
with a solid comp out on it - and you’re getting at good price - assigning it to buyer should be fairly easy. networking helps - know the who’s who of the game is good.
but tying it up for a month could cost people some change - if you’re in a market where say 1% represents the devaluing of a property - offer to put down 1% of the purchase price. this way if you screw up - you don’t screw the buyer out of losing 1% value in the month you tie it up. that’s the HONEST thing to do. :banghead
As I read your question and the responses, I was left wondering if you get it. You might have heard some training guru talk about “no risk” RE investing using the method you describe in your question - put a contract on it and immediately start marketing to a new buyer. Well, many of these trainers are successful at selling DVD’s and manuals because they make things sound so simple. The problem comes to the investor when he/she is out there in the real world, trying to do the business. Suddenly the realization hits them that there’s a lot more to this thing called RE investing than the guru said on a training DVD, which was really only designed to get you to buy another DVD.
If you are not prepared to actually buy the property should you not find another buyer to assign to, then you have no business putting a contract on the property in the first place. It’s just unethical. If the seller has a good agent working for them, the agent will require you to put earnest money on the contract. You will forfeit the money if you fail to purchase.
You can certainly use a contract to “tie up” a property, but you should either disclose your intentions to the seller and negotiate a small earnest money deposit, or be prepared to buy that property within the time allotted.