Opt Out Of Purchase Contract??? READ!!!
Say I want to wholesale a property after signing a purchase contract w/ seller, but I find no buyers to wholesale, can I put a clause in the Purchase Contract that will let me opt out? What should be the exact wording? I have no money to actually purchase the property, so I want to know if their is a way to back out of it.
How about an assignment option? What should be the exact wording???
Anyone know?
You can buy the property like "joe smith as or assigns to buy ...." and then sell it to someone else.
You can add an addendum that specifies that you have the right to sell, transfer, gift. etc the contract.
you can remove all dates for earnest money or offer no earnest money at all.
I think it was here on TCI that I read about a guy writing up a REPC on a napkin and taking it to the title company when he closed.
Even though things often appear to be extremly formal, they don't have to be that way. What's the proper way to exchange a wheelbarrow for carrots? Whatever works.
As far as your current contract there's an out if you made one. If not, you still offer an addendum. If you put in earnest money, you may loose it if you don't comply with your end of the contract.
I'll buy it "AS IS" with closing and inspections within 60 days ( the more the better). Unless inspection is $0.00 , you can get out and it give you time to sell or lease...
The max you lose is the deposit you put in. You should have a clause that the deposit is the only remedy for default.
ehm...contigent upon partner's / wife / whocareswho's approval within x days?..would that work for your situation?..called a contigency clause...and of course you mustn't have signed the contract...hmmm..you did....ok...keep it for next time...
cheers....[ Edited by JohnC on Date 07/03/2003 ]
Thanks for all the info and advice!
how about contingent upon buyer finding a subject purchaser within the contract period? these contingency clauses REALLY weaken your offer and make it seem as you can't perform. Instead of doing that, I would opt for a exclusive option to purchase the property and give the seller token money, like $50, for the right to purchase the property for a given time. This is a unilateral instrument: you have the right, but not the obligation, to purchase the house for a certain price for a period of time. Much better than putting a bunch of contingencies.
From a Realtor: I like Jorge121's idea of getting the seller to sign an agreement of exclusive right to buy during a certain amount of time for a certain price. You are not obligated to buy, but have the rights to.
However, the seller most likely will not want to take his home off the market, waiting for you. So, he will probably only sign if he is able to keep it on the market for other offers.
For a win\win situation, it could be written something like this... If another acceptable offer is received he must give you immediate notice. At which time, you will still have the first right to buy, but your time frame would then be moved up to (for ex.)"24 hours" for an actual purchase contract, or give it up.
This will buy you time, while giving the seller an acceptable out, just in case he gets another offer.
Good luck,
OHhouse