Birddogging Contract Question
I just recently joined the forum. I have an investor that has several properties for sale. I also have lined up a buyer that is willing to pay cash. I want to write a contract stating that I will be paid a certain amout at closing for connecting the buyer and seller. What type of contract is needed and what should the contract say. I have an agent that I work with but since I found this site I thought I would give it a try. If there are several properties available do I have to have a separate contract between myself and the seller for a finders fee. Help. How does this all work.[ Edited by turneri on Date 11/05/2004 ]
If you are not a licensed agent you can not legally be paid nor can you complete any contracts. Even a referral fee would be out of the question. Since you are not a licensed agent (governed by RE Commission) you can accept a gift of some sort (money I presume) on the side. But do not try to perform the duties of an agent. If you pass it along to your agent friend they will not be able to give you a fee. You are in a hard place, sounds like you may have done some volunteer work.
So how does bird dogging work. I thought the whole premise of bird dogging is to connect sellers and buyers of property and charge a fee. How does it all work then? Is this an illegal practice.
it is not illegal as long as you are not acting as an "re agent".km
I am in no way acting as an agent. How do I guarantee to get paid. Can I use a contract and if so what should it say.
I am still new to REI also, but I do understand how to make $$ using assignment of contract. You need to get the property/ies tied up in a contract you submit and it will be signed by the seller agreeing the terms. The contract MUST SAY on it (your name i.e. Buyer) and then "And/or Assigns" this way you contract is assignable to whomever you wish. Make sure you leave yourself a life boat clause, something that allows you to get out of the deal should something go bad. Like subject to partners approval, this one should always be in "contract subject to buyer obtaining suitable financing, buyer shall act diligently and in good faith to obtain financing". You'll need to put up an earnest money check for whatever amount. And in the contract state, "Earnest money check due and payable at close of escrow". write this on the check also. Take the check personally to the escrow co. and tell them face to face this check is not to be cashed until the close of escrow, just in case the appropriate funds may or may not be there. The only other form is just an assignment form stating you are signing your contract over to whomever for X amount. If I made any mistakes in this someone more experienced feel free to correct me.
you'll want a 14 day or however long due diligence period to do your homework.
Oh yeah one more clause