OfflineWe are in the middle of attorney review right now and my lawyer has me worried about my subject to's. This is what I have:
Buyer has the right to assign this contract. This offer is subject to inspection and approval of buyers partners within 10 days.
My lawyer feels that the buyers partners part is too vague and that it will not get us out of the contract and get our earnest money back. Especially since it has been almost a month since we signed the contract and he feels that the "partner" should have already disapproved.
He is fine with the inspection but, says that WE are not having a professional inspector view the property and that could be a problem.
He is worried that we will get sued if we back out of the contract. The realtor is telling us the same thing. They are driving me insane!
What do you put on your MLS contracts?
Allen & Denise
Denal Enterprises
It does seem vague especially since it has almost a month with no decision from your "partner". We have had banks require inspections be done only by professionals to allow you out of the contract due to some defect.
As for being sued, that's a possibility that they might sue you for "specific performance"(meaning making you perform according to the contract) but how are they going to make you buy the house ... that's is what the earnest money deposit is for, so you might be at risk of loosing it.Hopefully was was a small amount.
What was your financing arrangement, because that's usually another "subject to" that you could get out of; unless it was a cash offer.
You said "it has been almost a month since we signed the contract" but you have a contingency of 10 days only? It sounds the contingency already expired. When we've done contracts with assignment clauses, we try to get as much time as possible. The inspection contingency is good, but if you decide to back out, sometimes the Seller would ask to see a professional report, or a repair estimate beyond your budget. Not against attorneys, but I am sure he wants to protect you guys from all aspects. In most aspects, you have to give before you get something back. In MLS contracts, you can use your company name "And/or assigns", in the special provisions, you could just say: this contract is subject to third party approval within XXX days. You could leave the number of days out, so the subject to is available for the time of execution of the contract. Note: I am not an attorney but this seems to be very standard.
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com
Just to clarify the 10 days. It doesn't start until we are out of attorney review.
Allen & Denise
Denal Enterprises
3 days, correct? When I lived in NJ my lawyer was so conservative that he found potential problems in most deals ... if I only went through with half of them I would have been a multi-millionaire.
They say it's a 3 day attorney review but I have never had one take 3 days. They always seem to drag it out. Right now I don't feel like we will even be a thousandaire. LOL
Allen & Denise
Denal Enterprises
Allen & Denise, I was just reading your posts. I will pray that everything goes well for you, and this turns out to be a good deal, or at least you don't lose your earnest money. You both seem like really nice people....and we wish you all the best!!! Mike & Deb