Once again, before I start getting legal documents signed, I want to verify I have the correct lingo for my contracts. Below are snippets from the TREC and items highlighted in red are things I added to the contract.
PARTIES: (Seller) agrees to
sell and convey to (Buyer)
and Buyer agrees to buy and/or assigns from Seller the Property described below.
A. The closing of the sale will be on or around , 20 , or within 7
days after objections made under Paragraph 6D have been cured or waived, whichever
date is later (Closing Date). If either party fails to close the sale by the Closing Date, the
non-defaulting party may exercise the remedies contained in Paragraph
Those are the 2 changes I made to TREC. Other than that, I need to make sure I add in my clauses specific to each deal - inspection, lockbox, etc… Also, need to make sure and give seller option money as a way out of the deal right???
So, during a deal I will give the seller 1 check (option money) and the title company 1 check (earnest money), correct?
I am confused. I’m simply trying to get my contract situated so I can begin doing deals. From my research, I thought I was supposed to have these clauses in my contracts for an out clause, etc. How am I supposed to specify “and/or assigns” if I can’t modify the contract?? Do you do this through an added clause in section 11???
Principles to a transaction can strike out or modify the actual TREC contracts as long as you initial the change and have the other parties initial as well. If you want to copy the language, I don’t think there’s a big deal with it, but I’m also not a lawyer.
Most investors just get a lawyer to draft a contract based on what they like in the TREC contracts or just modify it. “and/or” assigns isn’t really a modification since you’ll just sign that behind your name in the appropriate space.
Like Dee said, add and/or assigns after your name as a buyer and you can write the clauses in section 11 but don’t make your changes appear as part of the contract as if the contract came from TREC that way since you are presenting it as a TREC contract with TREC disclosures and name.