Assigning A Contract Again ??
I have a house under contract in Atlanta. Appraised 190k...under contract for 152k. I haven't sold yet but have a few questions. In order to put an option to purchase contract on the house the owner required 500 earnest money. Will I get this money back when I assign the contract? Would I have had to add something to the contract saying I get this money back. Even though I have the option to assign written into the contract I don't think the owner would have signed the contract had they known I was going to be trying to sell the contract so I didn't ask this question of her.
If you assign the contract you should get the $500 back from the person you assign the contract to at the time of the assignment (along with any assignment fee). They will get the credit from the seller at the closing when they buy.
From what i understand, We shouldn' t use any money when it comes to Options. Not only does the seller have the right to keep marketing him home, he also have someone else trying to market his home. The seller has everything to gain and nothing to loose. So, why does he deserve more than what' s required for a legal Option in GA.
Murphy
She said she wants to close on the house soon...therefore if I wasn't serious about the house she didn't want to hold it for 45 days. So to show that I am serious she wanted 500 earnest money. If she knew I was going to assign the contract she probably would not have let me put it under contract.
Im not going to sell the property. I am just going to be assigning the contract hopefully when I find a buyer.
I just thought of another question. If I were to just sign a purchase contract with her am I still able to assign it? We only singed an option to purchase agreement. And wouldn't I have to purchase the property if I wasn't able to assign it in time?
Quote:
On 2004-06-27 10:51, Murphyj2000 wrote:
We should' t use any money when it comes to Options.
Murphy
You understand completely INCORRECTLY.
Now, the problem might be the wording in this thread. It is not clear if we are really talking about an option or an earnest money (what you sign when you try to buy a home that is listed with an agent is one example).
For an option to be valid, the party buying the option need to pay consideration. Something of value with cash being the common instrument. The value has to be reasonable and not token as a token amount might be seen as having not paid consideration.
So, based on the sentence quoted above you would not have an option if you do pay consideration.
John
[addsig]