Info Please
I have a contract to purchase a property. I have contingencies. One being that the my partner must approve acceptence.
If I now do not wish to buy it, can I cancel the contract based on my partner said he woould not approve. He is not on any loan application.
I would like to know the definitive answer also. I have seen this advice given in regard to the "partner" and would like to know what happens when push comes to shove.
You can do whatever....Keep in mind that clauses like this says that you aren't serious. If you get this accepted you will likely pay a much higher price than a person coming in willing to pay all cash or even with a regular financing contengency.
Can't the partner contingency be successfully used as long as it isn't for too long? Say no longer than 14 days, but preferebaly less. It doesn't seem unreasonable to ask for a short period to get a "partner's" approval.
I use the inspection contingency though, and says something like "to determine if the property meets buyer's goals at buyer' sole discretion" or words to that affect. The financial contingency also says "financing acceptable to buyer at buyer's sole discretion" or something like that. I have not made a ton of offers, but these clauses have not yet been questioned when put forward (just the price
My experience has been similar to Marcher's. I usually buy through my RE agent and he was always wanting me to put down the terms of the loan as a contingency. I finally insisted on "terms acceptable to buyer". I have not had any problems on that contingency. You only need one contingency that you can control.
That is all great advice. Thank you all. I had no issue getting the contract signed with the seller. Just wanted to make sure I had my way out as I am assigning the contract and if that falls through then I will not buy the house.
I had intentions on doing so up until they wanted more money based on a appraisial I received for 257K. My contract is for 200K and since my contract ran out on Nov 25th and I asked for them to extend until Dec 5th they said they wanted 25K more based on my appraisial. (their RE agent started this BS by telling them they should have gotten more for the property.
There is about 15K in repairs and then holding costs, closing costs, marketing costs, etc etc. The seller thinks I am going to make a ton of money here when in reality I will net about 7 - 10K.
They did extend it until the 5th as they need to close on another house and they dont want this going into foreclosure as they are 6 payments behind on 1st mtg and 8 on 2nd.
Thanx for all your help.
I assigned the contract to a retail buyer for 10K. Easy 10K it was.
I only wish I could do more a month.
Thanx for all your help.
A little moot at this point Davese but to answer your question if you actually do have a "partner" then if he/she does not agree the contingency has not been met and you be ok. The problem, however, is when there really is not "partner" but rather the so-called "partner" is really the person to whom you wish to assign the contract or a person you later want to help fund the deal. Thats not really a partner as that word is defined. In that case, I would argue the original offer lacked the requisite "good faith" such that the contingency should be ignored and hold the buyer to the deal.
Of course this is contrary to what many "infomercial gurus" preach. But then again, many of the gurus don't really make any money doing RE, just selling courses (my brother in law actually audited one of these TV gurus and found only 5% of their income came from RE).