I ,_________________________________________________________ (Seller), on this ____ day of ______________________, 20_____, have agreed in writing to sell the property commonly known as ______________________________________________, (The Property) to ________________________________________ (Buyer) and or assigns, according to the terms and conditions contained in the Purchase and Sale Agreement (The Agreement) of even date, a copy of which is attached hereto. I further state as follows:
________ 1. OWNERSHIP OF THE PROPERTY: I am the owner of The Property (or I have an equitable interest in The Property) and am able to contract for its sale.
________ 2. ACCEPTANCE: I have reviewed the terms and conditions contained in The Agreement and have accepted Buyer's offer to purchase The Property.
________ 3. GOOD AND VALUABLE CONSIDERATION: I have received good and valuable consideration in signing The Agreement, and I acknowledge both the receipt and the sufficiency of the consideration.
________ 4. IN MY BEST INTEREST: I am satisfied with The Agreement and have agreed to sell The Property because it is in my best interest to do so.
________ 5. FULLY INFORMED AND NOT CONFUSED: I have signed The Agreement being fully informed and with sufficient understanding of all terms and conditions contained therein. I am not confused about any aspect of The Agreement.
________ 6. SATISFIED WITH THE SALES PRICE: I understand I may be selling The Property for less than market value but have chosen to do so because circumstances dictate that an immediate sale, even at a discounted price, is in my best interest. I am satisfied with the sales price I have negotiated.
________ 7. SALE IS FINAL: I understand by signing The Agreement, I have agreed to sell The Property to Buyer and am now bound by the terms and conditions described in The Agreement. I further understand that I cannot ¡°change my mind¡± or cancel the contract at some later date, nor can I continue to market The Property to any other buyer.
________ 8. CONTINGENCIES MAY EXIST: I understand the sale may be contingent upon Buyer's inspection and approval of certain items described in The Agreement. I further understand that if Buyer does not approve of these items, Buyer may cancel The Agreement and if cancelled, I must return Buyer's earnest money in full.
________ 9. NOT A LOAN: I understand The Agreement I have signed is for the outright sale of The Property and is not intended to be a loan of any kind.
________ 10. AGREEMENT MAY BE ASSIGNED: I understand Buyer may assign The Agreement to another party and I may be closing the sale with someone other than Buyer.
________ 11. NO ESCROW: I understand Buyer may choose to ¡°close¡± this transaction without the use of an escrow company and may record the conveyance documents himself.
________ 12. CLOSING DOCUMENTS: I understand there will be additional closing documents to sign and upon receipt, agree to sign and deliver the closing documents either into Escrow or directly to Buyer, as Buyer may direct, in a timely manner.
________ 13. COPIES OF THE PAPERWORK: I understand that copies of the paperwork I've signed will be provided to me in a timely manner and I acknowledge that circumstances dictate that copies may not be immediately made available to me.
________ 14. BUYER ENTITLED TO MAKE A PROFIT: I understand Buyer may resell The Property and may realize a profit in doing so. I agree Buyer is entitled to any profit that may ultimately result from the subsequent resale of The Property.
________ 15. LEGAL COUNSEL ADVISED: I acknowledge Buyer has advised me to seek independent legal counsel to review The Agreement.
________ 16. FINANCIAL REVIEW ADVISED: I acknowledge Buyer has advised me to seek an independent financial advisor to review The Agreement.
________ 17. FAIRLY NEGOTIATED: I understand Buyer has negotiated on his own behalf and likewise, I have negotiated on mine. I acknowledge The Agreement has been negotiated fairly and Buyer has not taken advantage of me or my current situation.
________ 18. NO PRECLUDING AILMENTS: I have no physical, mental or emotional ailments that preclude me from signing The Agreement.
________ 19. NOT UNDER THE INFLUENCE: I am not now under the influence of alcohol or any other mind-altering substance, nor am I taking medication that would cloud my judgment or make me unable to think clearly.
________ 20. NO OTHER PROMISES: I have not been promised anything other than what is described in The Agreement. There are no unresolved issues, no ¡°side agreements,¡± nor are there other terms not disclosed in The Agreement.
________ 21. NOT UNDER DURESS: I am not under duress and have signed The Agreement of my own free will, without any undue financial pressure. Buyer has in no way pressured me into signing The Agreement.
________ 22. FULLY SATISFIED WITH AGREEMENT: I am fully satisfied with all terms and conditions contained in The Agreement.
Dated this _____ day of ___________________, 20____.
It was fun reading the clauses. I have never presented something this long to a seller before. You want to agree a deal, not scare the seller. Hence including things that do not apply or are already covered before could be a negative rather then a positive to the buyer.
I try to keep the deal simple so the buyer knows what they are getting into. I do not want them backing out. Even if you have a signed agreement it does not mean the buyer will cooperate. It is not always smart to sue or otherwise force them to follow through. Hence, having is signed is more to remind them what they promised but not always as a way to make sure they do not back out.
________ 4. IN MY BEST INTEREST: I am satisfied with The Agreement and have agreed to sell The Property because it is in my best interest to do so.
I can think of one more like:
_________ 23. END OF TIME: If I take the time to read all of this initial then sign I am so motivated that this agreement will survive until the end of time and I would have signed anything.
We feel these clauses do not build credibility and if you are building your business this way...word will travel fast and more than likely your next post to TCI will be: "Why can't I find anyone to sell their home or another investor to work with me?"
Our business model frowns upon these clauses and our choice is to overlook the RE investor who support them.
I actually never use any of these. In commercial deal I have an environmental inspection. Other than that I have a mortgage contingency. My lender won't lend if there's anything else wrong. So if I find anything I just inform the lender and the deal dies on the mortgage contingency.
If I were buying sub to or with seller financing I'd clear all these things as much as possible in the talking phase. Whats the point of writing deals so you can try to get out of them? It just means you lack confidence in your initial judgement. If you lack confidence your seller will sense it and move on to somebody who acts like they will do the dea.
You just need one contingency. My favorite in the hot market here in So. California is to waive the loan contingency. The buyer's agents love it, but only because they forget the other contingencies are still in place.
I always use the inspection contingency as my escape clause if necessary.
It seems like the major problem an investor runs across is whether the seller actually knows whats going on (competent). Even if they sign something like that huge list of things above, if you can't prove they are competent at the time it's signed, it's all mute.
This list looks familiar now that I think about it, I am not sure but could this be Joe Kaiser's material, I am not sure if it is copyrighted, but I will check with Joe to find out.
Well I have enjoyed the post however I was looking for serious post. I appreciate those that did respond in a serious manner.
Someone stated something about not using these, another mentions lack of confidence in the deal.
It is possible you can have perfect confidence but confidence doesnt mean something could happen in the deal unknown no matter how careful you are or experienced.
Even the best find themselves in a deal where a seller or some unknown thing be discovered maybe the seller didnt even know about.
You need some sort of out, this isnt shady business it is good business.
However, I dont think so many are needed but that was a fun contract.
Seller's agents like having no loan contingency because that's usually the one that can kill a deal weeks into it. The other clauses tend to be short - these days 5 days for inspections is pretty generous around here.
"Can you speak a bit more about what a 'no loan contigency' is and how it helps to put it in a contract?"
I don't know how contracts read in your state, but in Ca. there is a loan contingeny box that can be checked or not checked. If yours doesn't have it, you could just write 'This offer is not subject to loan approval. '
Why is this a good thing? Well, a lot of deals fall out of escrow due to the buyer not qualifying for a loan. When you remove that from the equation, it makes the seller feel good about your offer, because it means you could lose your deposit if you can't get a loan.
However, on your buying end of the deal, you still have several contingencies in place that you can excercise if you want or need to. You only need one contingency, so simply remove the ones that scare the seller the most.
Yeah, you would think it's logical to need a loan to buy, but around here if the seller has more than one offer, they get ridiculous.
I'm just pointing out that if there are 2 equal offers and one has no loan contingency, the seller will choose the one without it. Just a technique I use.
I can't wait for the market to turn and go back to a BUYER's market!
i always have a escape claues. its my safety net. conditions in the deal can change. i might see something in/on the prop. that changes my outlook ect. after the fact for me there are to many deals available to put myself at risk. it has never hendered my buying in the past. even if it was an issue i can amend it if i chose but i would not. for me it gives a postion of "control" in the deal because i can in effect "just walk away" if i need. it just makes me feel comfortable in a deal so i do it. whatever makes you "totally comfortable " in a deal you should do. this i believe......kenmax
Quote:
On 2004-06-29 22:37, JohnLocke wrote:
robpaddock,
This list looks familiar now that I think about it, I am not sure but could this be Joe Kaiser's material, I am not sure if it is copyrighted, but I will check with Joe to find out.
John $Cash$ Locke
This DOES look like Joe Kaiser's "best damn document ever" and I'd be willing to bet money that it is. However, Joe gave this out freely to everyone that subscribes to his newsletter.
NO Loan Contingency: Means your contract is not subject to you obtaining financing.
Sellers like this because with a loan contingency you can tie the property up waiting for loan approval, maybe 30 days and it is off the market. Waiving it means you are a strong buyer. It also makes your offer go to the top of the pile if all other things are relatively equal in an offer.
Remember, most contracts are subject to attorney approval or possibly an inspection, so you still have an out if you need it.
_________________
Tom B.
"Nothing To It, But To Do It"[ Edited by roztom on Date 07/10/2004 ]
Seller's Acknowledgements
I ,_________________________________________________________ (Seller), on this ____ day of ______________________, 20_____, have agreed in writing to sell the property commonly known as ______________________________________________, (The Property) to ________________________________________ (Buyer) and or assigns, according to the terms and conditions contained in the Purchase and Sale Agreement (The Agreement) of even date, a copy of which is attached hereto. I further state as follows:
________ 1. OWNERSHIP OF THE PROPERTY: I am the owner of The Property (or I have an equitable interest in The Property) and am able to contract for its sale.
________ 2. ACCEPTANCE: I have reviewed the terms and conditions contained in The Agreement and have accepted Buyer's offer to purchase The Property.
________ 3. GOOD AND VALUABLE CONSIDERATION: I have received good and valuable consideration in signing The Agreement, and I acknowledge both the receipt and the sufficiency of the consideration.
________ 4. IN MY BEST INTEREST: I am satisfied with The Agreement and have agreed to sell The Property because it is in my best interest to do so.
________ 5. FULLY INFORMED AND NOT CONFUSED: I have signed The Agreement being fully informed and with sufficient understanding of all terms and conditions contained therein. I am not confused about any aspect of The Agreement.
________ 6. SATISFIED WITH THE SALES PRICE: I understand I may be selling The Property for less than market value but have chosen to do so because circumstances dictate that an immediate sale, even at a discounted price, is in my best interest. I am satisfied with the sales price I have negotiated.
________ 7. SALE IS FINAL: I understand by signing The Agreement, I have agreed to sell The Property to Buyer and am now bound by the terms and conditions described in The Agreement. I further understand that I cannot ¡°change my mind¡± or cancel the contract at some later date, nor can I continue to market The Property to any other buyer.
________ 8. CONTINGENCIES MAY EXIST: I understand the sale may be contingent upon Buyer's inspection and approval of certain items described in The Agreement. I further understand that if Buyer does not approve of these items, Buyer may cancel The Agreement and if cancelled, I must return Buyer's earnest money in full.
________ 9. NOT A LOAN: I understand The Agreement I have signed is for the outright sale of The Property and is not intended to be a loan of any kind.
________ 10. AGREEMENT MAY BE ASSIGNED: I understand Buyer may assign The Agreement to another party and I may be closing the sale with someone other than Buyer.
________ 11. NO ESCROW: I understand Buyer may choose to ¡°close¡± this transaction without the use of an escrow company and may record the conveyance documents himself.
________ 12. CLOSING DOCUMENTS: I understand there will be additional closing documents to sign and upon receipt, agree to sign and deliver the closing documents either into Escrow or directly to Buyer, as Buyer may direct, in a timely manner.
________ 13. COPIES OF THE PAPERWORK: I understand that copies of the paperwork I've signed will be provided to me in a timely manner and I acknowledge that circumstances dictate that copies may not be immediately made available to me.
________ 14. BUYER ENTITLED TO MAKE A PROFIT: I understand Buyer may resell The Property and may realize a profit in doing so. I agree Buyer is entitled to any profit that may ultimately result from the subsequent resale of The Property.
________ 15. LEGAL COUNSEL ADVISED: I acknowledge Buyer has advised me to seek independent legal counsel to review The Agreement.
________ 16. FINANCIAL REVIEW ADVISED: I acknowledge Buyer has advised me to seek an independent financial advisor to review The Agreement.
________ 17. FAIRLY NEGOTIATED: I understand Buyer has negotiated on his own behalf and likewise, I have negotiated on mine. I acknowledge The Agreement has been negotiated fairly and Buyer has not taken advantage of me or my current situation.
________ 18. NO PRECLUDING AILMENTS: I have no physical, mental or emotional ailments that preclude me from signing The Agreement.
________ 19. NOT UNDER THE INFLUENCE: I am not now under the influence of alcohol or any other mind-altering substance, nor am I taking medication that would cloud my judgment or make me unable to think clearly.
________ 20. NO OTHER PROMISES: I have not been promised anything other than what is described in The Agreement. There are no unresolved issues, no ¡°side agreements,¡± nor are there other terms not disclosed in The Agreement.
________ 21. NOT UNDER DURESS: I am not under duress and have signed The Agreement of my own free will, without any undue financial pressure. Buyer has in no way pressured me into signing The Agreement.
________ 22. FULLY SATISFIED WITH AGREEMENT: I am fully satisfied with all terms and conditions contained in The Agreement.
Dated this _____ day of ___________________, 20____.
___________________________ Seller (Signature)
___________________________ Seller (Signature)
Thank You,
I enjoyed reading this response, and it has to be a first for someone to actually show part of the contracts they use.
You however posted it 3 times LOL but thanx again
Mark B
It was fun reading the clauses. I have never presented something this long to a seller before. You want to agree a deal, not scare the seller. Hence including things that do not apply or are already covered before could be a negative rather then a positive to the buyer.
I try to keep the deal simple so the buyer knows what they are getting into. I do not want them backing out. Even if you have a signed agreement it does not mean the buyer will cooperate. It is not always smart to sue or otherwise force them to follow through. Hence, having is signed is more to remind them what they promised but not always as a way to make sure they do not back out.
John
[addsig]
ohboy, you're right ,if you gave me all that to sign right off the bat, you certainly would be getting out of the deal with no problems lol
This one has to be a classic:
________ 4. IN MY BEST INTEREST: I am satisfied with The Agreement and have agreed to sell The Property because it is in my best interest to do so.
I can think of one more like:
_________ 23. END OF TIME: If I take the time to read all of this initial then sign I am so motivated that this agreement will survive until the end of time and I would have signed anything.
John $Cash$ Locke
[addsig]
Pick (1) out that suites your needs so that you actually get the deal signed.
Quote:
On 2004-06-27 20:22, MarkB wrote:
To cover the bases, what are some clauses you make sure you have to get out of the deal?
Mark B
contingent on buyers inspection - very broad and can be you just don't like it.
We call these "Wiggle Clauses"
We feel these clauses do not build credibility and if you are building your business this way...word will travel fast and more than likely your next post to TCI will be: "Why can't I find anyone to sell their home or another investor to work with me?"
Our business model frowns upon these clauses and our choice is to overlook the RE investor who support them.
Eric & Rosa
[addsig]
I actually never use any of these. In commercial deal I have an environmental inspection. Other than that I have a mortgage contingency. My lender won't lend if there's anything else wrong. So if I find anything I just inform the lender and the deal dies on the mortgage contingency.
If I were buying sub to or with seller financing I'd clear all these things as much as possible in the talking phase. Whats the point of writing deals so you can try to get out of them? It just means you lack confidence in your initial judgement. If you lack confidence your seller will sense it and move on to somebody who acts like they will do the dea.
You just need one contingency. My favorite in the hot market here in So. California is to waive the loan contingency. The buyer's agents love it, but only because they forget the other contingencies are still in place.
I always use the inspection contingency as my escape clause if necessary.
It seems like the major problem an investor runs across is whether the seller actually knows whats going on (competent). Even if they sign something like that huge list of things above, if you can't prove they are competent at the time it's signed, it's all mute.
robpaddock,
This list looks familiar now that I think about it, I am not sure but could this be Joe Kaiser's material, I am not sure if it is copyrighted, but I will check with Joe to find out.
John $Cash$ Locke
Well I have enjoyed the post however I was looking for serious post. I appreciate those that did respond in a serious manner.
Someone stated something about not using these, another mentions lack of confidence in the deal.
It is possible you can have perfect confidence but confidence doesnt mean something could happen in the deal unknown no matter how careful you are or experienced.
Even the best find themselves in a deal where a seller or some unknown thing be discovered maybe the seller didnt even know about.
You need some sort of out, this isnt shady business it is good business.
However, I dont think so many are needed but that was a fun contract.
Mark
Seller's agents like having no loan contingency because that's usually the one that can kill a deal weeks into it. The other clauses tend to be short - these days 5 days for inspections is pretty generous around here.
Can you speak a bit more about what a 'no loan contigency' is and how it helps to put it in a contract?
Thanks
"Can you speak a bit more about what a 'no loan contigency' is and how it helps to put it in a contract?"
I don't know how contracts read in your state, but in Ca. there is a loan contingeny box that can be checked or not checked. If yours doesn't have it, you could just write 'This offer is not subject to loan approval. '
Why is this a good thing? Well, a lot of deals fall out of escrow due to the buyer not qualifying for a loan. When you remove that from the equation, it makes the seller feel good about your offer, because it means you could lose your deposit if you can't get a loan.
However, on your buying end of the deal, you still have several contingencies in place that you can excercise if you want or need to. You only need one contingency, so simply remove the ones that scare the seller the most.
i usually use cong. upon loan approval if a loan is being used as c/k stated ....kenmax
if you have a seller that "wants" to sell they will gladly agree to a loan cong. clause. its logical if you can't get the money.........kenmax
Hey Kenmax,
Yeah, you would think it's logical to need a loan to buy, but around here if the seller has more than one offer, they get ridiculous.
I'm just pointing out that if there are 2 equal offers and one has no loan contingency, the seller will choose the one without it. Just a technique I use.
I can't wait for the market to turn and go back to a BUYER's market!
if you have a loan contingency, you can get out of the deal if you can't get a loan.
If there is no loan contingency, there is one less way for you to wiggle out, so the seller likes that.
i always have a escape claues. its my safety net. conditions in the deal can change. i might see something in/on the prop. that changes my outlook ect. after the fact for me there are to many deals available to put myself at risk. it has never hendered my buying in the past. even if it was an issue i can amend it if i chose but i would not. for me it gives a postion of "control" in the deal because i can in effect "just walk away" if i need. it just makes me feel comfortable in a deal so i do it. whatever makes you "totally comfortable " in a deal you should do. this i believe......kenmax
Quote:
On 2004-06-29 22:37, JohnLocke wrote:
robpaddock,
This list looks familiar now that I think about it, I am not sure but could this be Joe Kaiser's material, I am not sure if it is copyrighted, but I will check with Joe to find out.
John $Cash$ Locke
This DOES look like Joe Kaiser's "best damn document ever" and I'd be willing to bet money that it is. However, Joe gave this out freely to everyone that subscribes to his newsletter.
contingency = weasle clause
Have some integrity, make an offer prepared to "win" or "lose" based on your due diligence!
NO Loan Contingency: Means your contract is not subject to you obtaining financing.
Sellers like this because with a loan contingency you can tie the property up waiting for loan approval, maybe 30 days and it is off the market. Waiving it means you are a strong buyer. It also makes your offer go to the top of the pile if all other things are relatively equal in an offer.
Remember, most contracts are subject to attorney approval or possibly an inspection, so you still have an out if you need it.
_________________
Tom B.
"Nothing To It, But To Do It"[ Edited by roztom on Date 07/10/2004 ]
John,
It is Joe Kaiser's material. It's free. Thta's why I posted it.
Rob
John,
It is Joe Kaiser's material. It's free. Thta's why I posted it.
Rob
John,
It is Joe Kaiser's material. It's free. Thta's why I posted it.
Rob
John,
It is Joe Kaiser's material. It's free. Thta's why I posted it.
Rob
John,
It is Joe Kaiser's material. It's free. Thta's why I posted it.
Rob
John,
It is Joe Kaiser's material. It's free. Thta's why I posted it.
Rob
Quote:
On 2004-06-28 02:58, MarkB wrote:
Thank You,
I enjoyed reading this response, and it has to be a first for someone to actually show part of the contracts they use.
You however posted it 3 times LOL but thanx again
Mark B
It appears that he copied it directly from some old Joe Kaiser material (without giving credit where credit was due.)