CYA Form What Should It Include?
How many of you have had your own CYA made up for you by a lawyer? i have the additional provisions form that comes in locks manual but it dosnt seem that this provides enough cover, how many of you use locks form? im thinking that i need one to clearly state that the seller knows that his mortgage is staying in place, that the seller knows about the DOS and wont do anything to get the loan called on me, and that im not responsible if anything happens to the loan(which i feel i am) is their anything else i should include? thanks Jeb.
Isn't that (subject 2) clearly stated in the Buy Offer & Acceptance? Maybe I'm wrong, but this isn't politics, so stating something multiple times doesn't make it more true.
How many different variations on a CYA do you think our nations lawyers could come up with (for a fee)? I think $'s covers what it needs to cover.
I've course, you should have your lawyer review it
mboysen, since i have to use a local state specific Purchase and Sales agreement (the one all the title companys normally deal with) it dosnt state anything about sub2 unless i have it edited by a lawyer.
and no this isnt politics but if i want to protect myself from some angry seller who wants their house back and is claiming that they didnt understand the contract, then why not have it stated clearly on paper.
by the way you didnt say which contract you use or if you use locks contract or judging by your reply you prob. dont use any.
If you have Johns manual or course, I'd call him directly. I discussed this with him a few weeks ago over the phone because I was confused on the issue as well.
It sounded like you had his stuff, except for the CYA reference.
You can ask your lawyer's opinion, but I doubt he's done as many sub-to deals as $Cash$
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i was also wondering the same thing. I have lockes manual and i didnt think that the provisions contract stated enough. i may be wrong but after that post about the attorney general im nervous. also what exaclty is the point of the memorandom agreement? i dont really understand what the point of it is. thanks a lot ,Ryan
can anybody help?
ZinOrganization,
You already have the best CYA document I have every used and I have used it over 500+ times, it works at title companies, with attorney's and just about everyone I can think of who ever looked at it.
You also should have a corporate entity, this also protects you, why else would you form one?
You want to give attorney's ammunition to shoot at then start clouding up your paperwork documentation with frivilous paperwork.
Attorney's love this as they can make more money including all this frivilous paperwork in their complaint if you get sued and your attorney will make more money answering the complaint.
There is what happens in the real world and what happens when someone figures they have the latest greatest method of a CYA letter.
When you get sued it may go to trial, can you imagine a jury looking over a long list of CYA's and thinking, "I wonder what this guy was trying to hide?"
If you deal with honesty and the truth with any seller, then you know you have done things the right way, because you did your best to make it a win/win for everyone. This goes much farther than mumbo jumbo paperwork rhetoric should the occasion ever arise.
John $Cash$ Locke
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thanks John, i do have my own corp. entity already. and i will start out with using your contracts. I know you said that being upfront and honest with people is always a win/win situation. but in the real world their are people who will lye and make accusations about how they dont recall you telling them anything and will even go as far as lying under oath, this does happen.
i hope your forms will adequetly protect me as well as my LLC. for i am not a lawyer and couldnt decifer a contract into English if my life depended on it LOL. also i know you have said to get your forms reveiwed by a lawyer, but the cost for them to do this seems outragess, i think the only forms i need state specific are the P/A agreement and the Warantee Deed. i have heard people say that for sub2 "cookie cutter" contracts dont always work, so should i def. use a local P/A or yours? thanks Jeb
Jeb,
When you speak of people lying under oath it doesn't matter what paperwork you have them sign, they will say I did not understand what I was signing.
So don't count on any CYA's to save you, the man in the Black Robe has the final say on how he or she feels you operate your business.
Remember I said if the deal starts out bad it will only get worse, this is what I meant walk away.
Read the Affadavit again this is your CYA works everytime. The POA is just used in conjuction with the property, the Affadavit says it all.
If you feel that you need to add something then add the line off the Buy Offer and Sale Agreement, that deals with what happens with the loan into the Affadavit. Now you have said it twice.
John $Cash$ Locke
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Zin,
No, I have the only course I need for now!
Lockes course is great. I had heard about Kaisers doc on another forum. I've read it and read it again but still believe John's right. If you want it pm me and I'll get you the link.
Hello Zin,
As $Cash$ said his CYA form worked for him, and if you want a ten page lawyers $$$$$ form have at it. I myself would create an addendum stating, do you understand the,
" that the seller knows about the DOS and wont do anything to get the loan called on me"
and that im not responsible if anything happens to the loan"
for one your not gaining their trust if"anything happens" to THEIR loan, yes if they are responsible for getting the loan called, make it their responsability.
My two cents,
Marv
Here is a copy of what I have in mine. I own the intellectual property rights, so I hereby give myself permission to share it:
ADDENDUM TO REAL ESTATE
PURCHASE AND SALE AGREEMENT
Disclosure - The following is hereby disclosed:
1. I/We fully understand that the loan(s) on the Property described in the attached Real Estate Purchase And Sale Agreement contain(s) a Due On Sale Clause. I/We realize that the lender(s) could call the note(s) due and agree to hold the named Buyer(s), as well as all future Buyers, harmless.
2. The named Buyer(s) is/are buying said Property subject-to the existing financing. I/We have had this process explained to me/us, and I/we completely understand it. I/We have had the opportunity to seek legal counsel concerning the Due On Sale Clause and its implications if I/we desired such counseling.
3. I/We agree that although I/we have sold and deeded the Property to the Buyer(s) listed on the accompanying Real Estate Purchase And Sale Agreement, the loan(s) shall remain in my/our name(s) and will not be assumed by Buyer(s).
4. Any back payments (if applicable) will be made upon resale of the Property ONLY. If the Property is unable to be resold, payments will not be made current and foreclosure could result.
5. Buyer(s) retain the unqualified right to rescind all agreements and covenants thereof within thirty days after offer is accepted by all parties, at which time said Property shall be deeded back to Seller releasing Buyer(s) from all obligations. Buyer(s) hereby agree to make mortgage payments directly to the lender(s) in the amount of $______ starting on __________ and continuing until balances are paid off. Seller(s) must make up any escrow deposits necessary for taxes, insurance, and the like required to be made up at closing when the Property is resold, and said escrow balance shall be assigned to Buyer(s) in full with no compensation to Seller(s).
I/We have read, fully understand, and consent to the above and hereby agree to hold Buyer(s) completely blameless in every instance thereof.
Seller(s): ______________________________
______________________________
Date: _______________
thanks everyone for your replies. In no way did i make this post to bash Johns contract, i was just looking for input on how to further protect myself. i think this post will help prevent futer lawsuits from going very far. I also didnt mean to imply that i was going to have a stack of CYA forms ten feet tall for the seller to sign. so i thank those of you who put it into simplified terms so that the seller can also understand exactly whats going on. thank you, Jeb.
What does everyone think of the above form? I don't have John's course, but the above is much better than what I have already.
Z
Jeff thanks.
They are definitly being evicted. I have the notice (a copy) here with me now. Since I know that for sure is my land deed contract assignment in vain? Do I need to work directly with the agent for the trust because they still hold the deed? Any advice would be appreciated.
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:-? I just realized that my topic is wrong. The property is being purchased under a contract for warranty deed and the deed is being held in trust... so the purchasers name is not on the deed and their loan is for 40 years at %10.99 per annum with payments in the area of $1500 + per month.
With that info is my previous route okay
"I want to have the purchaser assign her warranty for deed contract over to me. Once she has assigned this I would also have her sign a quit claim deed (or should I have her sign another type of deed?) I then contact the trustee or agent for the trustee and let them know that funds for the entire purchase amount including past due amounts is held at my title company and we want to close ASAP."
I am looking at the property again tomorrow and taking the contract with me for her signature. Any help is appreciated.
I am going to go that route. I will contact the actual owner of the trust to see if they want to sell to me as is for the contract for deed price.
Thanks Jeff for your help. I didn't even consider that the contract for deed with the purchaser would not be valid any longer.
Glyn,
Glad to help you out.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=146
John $Cash$ Locke
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And when you are ready, here is part 2.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=266
John (LV)