OfflineCan anyone share with me if they include a Right of Refusal in their Purchase Agreements? I had a real estate broker tell me today that when I write up a Purchase Agreement that I should write it up for 30 days, and make sure that I include that the homeowner and/or seller's agent can still try to sell the property on their own during that time; but if they find a buyer they are obligated to contact me and offer me first right of refusal. That way I have the chance to match their offer. Is this the way that most of you all are writing up your Purchase Agreements? Thank you for your help.
Nancy
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I wouldn't do that. Either they accept it, reject it, or counter-offer. Then you either have it locked up or you don't. Letting it sit for 30 days wondering if there will be other offers higher sounds like torture! That sound like exactly what the banks do with our short-sale offers.
Maybe I'm not understanding the concept. Did he say what the benefit was?
Rina
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Hi Rina,
For some reason if you read some of my other posts you will see that some of my business associates are trying to talk me out of wholesaling real estate. This particular person is a real estate broker who believes anyone can sue anyone for anything. He told me if I am dealing with a homeowner who is already upset about having to move, and then they sign a purchase agreement with me where they know it is an assignable contract, giving me 30 days to find a buyer, and I don't and the home goes into foreclosure; they could get upset and sue me. He said a judge may feel that I took advantage of them.
He said a way to protect myself was to lock up the property for no more than 30 days to try to find a buyer/investor. So it sounds like you don't agree with the first right of refusal but then what happens if in that 30 days,the homeowner or seller's agent finds a buyer before I do. How would I proceed? Can you explain how you protect yourself when locking up properties; and can you tell me how you state your contingencies in your Purchase Agreement?
I read the success stories on this site, and I know I should just get out there and do this, but with my husband out of work for almost 3 months, I really can't afford to make a mistake. As always, I appreciate any help or suggestions that members of this forum can give me.
Nancy