I probably have downloaded 5 of both contact and assignment contracts and honestly need to know what is the most important things that need to be spelled out to protect me and give me escape if a deal goes wrong. Also I need to know what should be in there to be up front and honest with the seller. Any advice would be helpful.
What’s the worst you imagine happening ‘if things go wrong?’
Being sued or being turned in to the state labor board. I don’t want to back out of deals because I see that as a failure in my part but I also want to avoid court or the government as much as possible as well.
Honestly, if your security hormones have kicked in this hard, you’re probably not gonna ever get started in the first place. Dealing with people is just a risk of loss, no matter what. Never mind the government.
Meanwhile, sellers don’t care about you, or how you do business, as long as you do what you promise.
Buyer’s don’t care about you either, or necessarily how you do business, as long as you do what you say.
As a buyer, you effectively have no liability with all the control. As a seller, you have all the liability, and little control.
Your fears are of the unknown, not the actual known. Nobody is going to turn you into the labor board. For what? Whom have you seen this happen to? What was the outcome? If it was a bad outcome, then don’t do what they did.
Meantime, all you need is a purchase agreement that spells out what you promise to do, and when you promise to do it. If you fail to perform, you fail to perform, and you lose any earnest/binder deposit money.
Which brings me to mention, as a private investor, you don’t even mention earnest deposits, or binder fees in your agreements. Why? Because you’re not interested in having to fight for the return of your money on deals you couldn’t close on. If you haven’t deposited an earnest deposit, and the deals goes south, what’s the damages?
****And just to let you know, every judge will force every seller to return your earnest deposit to you, regardless of what your contract reads. That’s why they say, ‘sellers have to sell, but buyers don’t have to buy.’
I know, because a buyer sued me for the return of his deposit, despite not having any leg to stand on, and the judge awarded him the deposit. Worse, it became a judgement on my credit, despite the money being in escrow and immediately payable.
Stop fussing over the small stuff, and start focusing on making money.
OK thanks for the information. I just don’t want to go into a business half cocked. I tend to do that and fail at first but if I can avoid those bumps I would like too. One of my ebay business back when I was 18 was super competitive and in cosmetics and because of that I was turned in to the FDA. Nothing happened but it was a very unpleasant experience. Thus my caution now. With that said my excitement always out weights my fears because to live afraid is to not live at all.
You always need to have in the contract that the only remedy to this contract is earnest money. I usually write in $100 and the people skip right over it because they don’t even see it. That way, you can always back out of a contract. Another little out I write in mine is if my investor doesn’t approve then the deal is cancelled. Basically, you can have anyone pose as your investor for you to back out of the deal. Let me know if you have questions!
Need Assignment of Contract & Purchase and Sale Agreement for Washington State. Anyone that can help me locate these forms? Thank you.
I don’t mind sharing! Please message me and I’ll give you all my contracts. You can click on my email link below. I’ll give you whatever contracts I have, from assignments to earnest money to seller contracts.
How can i find out what needs to be in the double closing contract for the state of maryland and nevada?
A simultaneous closing would use a purchase contract on both sellers and buyers end. Maybe someone could chime in with specifics but make sure you have a long inspection period on the seller side so you can find a buyer with a out clause if you can’t. On the buyer side you need to make sure they know its as is at the minimum. I would add in a lead paint clause for Maryland because they have very old houses and you will run into that.
And/or Assigns