What To Have Signed When I First Meet With Seller??

I know I need to have an authorization to release information signed to talk to the lender. I'll bring the purchase agreement. Should I also have them sign a memorandum of agreement?

It sounds like this isn't necessary, just a safety in case they try to go around you. It will "cloud" the title. However, I've also read that these memorandums can often be ignored by title searches and may not cloud anything at all.

Do I have everything covered then?

Comments(2)

  • John12129th July, 2004

    Hello!!

    Sounds like you've been reading "Flipping Properties" by William Bronchik.. if not.. its a good one!

    Anyhow... I would also like to know about Memoradum of agreements...

    How many are using these? it sounds like it would be quite a trick to get a seller to sign one of these, because doesnt it Bind them to JUST selling it to you?

    Why would a seller EVER do this?

    Happy investing!!

  • n_armond9th July, 2004

    With the Memorandum of Agreement and Affidavit, the seller's signature or consent is not needed. It operates very much like a lien since you don't need these two things to file it. Also, depending on your area, you may or may not have to have the affidavit notarized in order to record it.

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