Assigning A P&S???
Hey Everyone,
I have signed a P&S to buy a piece of commercial land for 400k, however a cash buyer came forward through my realtor and offered me 500k... Do the math.
Can I assign the P&S to him without going through the lender process and closing myself. I would ask my lawyer about this but he his the one who turned me onto the property (another older client of his).....
There are no stipulations in the P&S saying either party couldn't assign. Guess I'm looking for a way to approach it
could you help me understand what p&s is?
thanks, roy
Purchase and Sales agreement
well i hope i understood you right, if i sound confusing,please bear with me.
i am assuming you have not closed yet,
ths person who offered 500k does he sound like he can get the financing,or does he need help for that,
if so you can always lease option with 100K down for 2or more yr's shorter than your loan-make a profit-then if he doesnt have financing to pay you off,continue the option,or sell to someone else.please let me know if it helpS
no no...the 500k is from a cash buyer (no financing on his part 1031) I haven't closed yet. I extended the closing date until I figure out the best approach[ Edited by agm on Date 11/17/2003 ]
so what your saying is you want to just be able to sign it over to the cash buyer
at the time of cosing ,if it would be possible?
yes you can assign it to him because he doesnt have to deal with a lender, he has cash. Who will complain? As long as your agreement doesnt say you cannot assign then you can. You do not have to continue your loan process. Does he know that you only have a agreement and do not own it? If so, get an assignment agreement and sign it with him asap. Only give him enough time that you still have on your agreement and not a day more, less if you can. Make sure it states that once he signs he is liable even if his time runs out. Hope this helps and he is honest. If so looks like a great deal!
Well, I called another lawyer of mine and he drew up a "notice of assignment" for hime and I to sign on the property. He already gave the offer in writing with a 20k check as a good faith deposit. I just waiting to sign it until I have all angles figured out.
More or less my question revolves around the legality of it. To be honest I caught about 2 years on a fliping deal and the lender complained big time and it was a mess. This time though I am not borrowing money, so I don't think i would fall into the same problem
Quote:
On 2003-11-17 09:45, fpd1520 wrote:
so what your saying is you want to just be able to sign it over to the cash buyer
at the time of cosing ,if it would be possible?
It should be possible. How to go about it from a legal setting. More so if anyone has structured a deal similiar to this one that I could mirror
I obviously do not want my purchase price in the notice of assignment[ Edited by agm on Date 11/17/2003 ]
best of luck on your investments!
roy
To close or not? Well lets see, how much time do you have , is closing listed as on or before, will the seller spook when he sees a hud with a 110k assignment fee? Will the buyer hope you will not get your financing in order run you long on the deal and try to push you out? You say your buyer is cash so I might hope for a quick close just to see if he is able and you can still pull it off if he screws around. My thoughts are if this is the kind of profit you normaly deal in then go with the assignment, if not, enter into a p/s agreement subject to you recieving clear title set up a double closing and cal it a day.
Quote:
On 2003-11-17 10:54, rickomarsh wrote:
To close or not? Well lets see, how much time do you have , is closing listed as on or before, will the seller spook when he sees a hud with a 110k assignment fee? Will the buyer hope you will not get your financing in order run you long on the deal and try to push you out? You say your buyer is cash so I might hope for a quick close just to see if he is able and you can still pull it off if he screws around. My thoughts are if this is the kind of profit you normaly deal in then go with the assignment, if not, enter into a p/s agreement subject to you recieving clear title set up a double closing and cal it a day.
Hey Rick,
Good thoughts. The seller is a mutual client of my attorney and this is a private sale between her and I. She is an older woman and just wanted the money for her condo. She is fully aware that this is to make money and nothing else.
This buyer however, I was a little shaky on whether or not he was saying it to blow smoke up my A** or a real buyer. So when I drew up the offer I had it state that 10k be paid and non-refunadable if he doesn't close and he would have to close 21 days from the time I sign the offer. Well, the offer is in with the check. Waiting to sign it.....
some good advice from someone who has done alot of assignment deals. The longer you wait the more he is going to be thinking about how to save his 110k. What are you waiting for? People lose alot of times from being scared. There is nothing illegal about an assignment. You legally have a contract with the seller agreeing to sell to you and you can assign it as long as it does say you cant . Please tell me what you think you need to think about. Dont wait to long and have to kick yourself for losing out on a great deal. Or if you still arent sure pm me with the owners name and I will assign it to him
Maybe you could close subject-to and then immediately pay off the loans when you resell....
If you have an escrow company. Merely instruct the escrow officer to accept your offer and acceptance and proceed to close at the same time you open another escrow and have the new buyer deposit in that escrow and proceed to close.
If you are in a state where you close with an attorney. Give the same instruction to the attorney. and proceed to settlement and close.
This is classic conduit agency.
The escrow can only divulge what is in the specific escrow. The attorney can only divulge as to the designated transaction. So Instruct.
Get Rich. Lucius
Thanks NChot...... there is no loan or escrow account now just a purchase and sales agreement between her and I. I'm partial to do the double closing because I've run into trouble doing that kind of flip in the past. Lender got real pi**ed off at me. Anyway I'm going to wrap it up today.....THanks
You have a chance to make 100k.
You have been found guilty of fraud for flipping and yet you come here for advice instead of paying a DIFFERENT atty a couple hundred dollars to find your answers???
Now I am confused.[ Edited by MrMike on Date 11/26/2003 ]