OfflineAre there alot of you doing assignment deals directly with an end-buyer and with the homeowners, verses working with agents? I have been advised to make sure to get a fairly large earnest deposit from the end-buyer at the time I assign him the contract, that way he will have a vested interest in following through with the closing of the property weeks later. If he signs a contract that saids that he will pay a substantial deposit at closing or at escrow, I believe he can still walk away any time before settlement and not lose any money. Is this the case?
I was told if I don't collect a deposit from the end-buyer/investor and he decides not to purchase the property a few days before closing even after he has signed the Assignment Agreement, and the homeowner has already started moving out, and therefore may have already accrued moving expenses, there could be legal ramifications. I would have to go back to the homeowners and say he changed his mind. Now they are stuck paying for their moving expenses. Couldn't they sue me or demand my initial deposit back, or even refuse to sign a deposit release agreement? Would working with seller agents and buyers agents protect me more? If so, is it true that once a property is listed in the MLS, I as a wholesaler need to have a buyer's agent represent me, whether I have my own or the seller's firm appointed one for me?
I appreciate any advice or suggestions.
Thank you,
Nancy
State laws vary regarding agency, however every state requires agency disclosure at some time prior to contract negotiation. In many states you can refuse buyer representation. If the buyer is not represented all agents in the transaction are working for the seller.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Nancy,
Earnest money by definition is a deposit made by a purchaser of real estate to evidence good faith. There should be an earnest deposit made at time of contract. For one thing something of value must exchange hands to make the contract valid. It is a negotiable item.
Once you have assigned the contract you have no further obligation to it. That obligation is now the assignees.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Hello,
Today I spoke with a mortgage broker/real estate agent in Phoenix AZ and I told him I would be assigning contracts initially. He emailed me and told me I needed to be a licensed real estate agent as I would be representing a seller? I told him that I am not representing the seller that I will be finding them a buyer. He also told me that Realtors are the only ones that can collect a commission? Do I need to have an atty look at your IEE contract before I start digging in my heels here? Any sound and or legal advice is appreciated. Thank you.
Hello all, I just finished reading Dean's books and I already have a deal in front of me.I need to know how to word the.contract.it is an reo home that I want to submit offer today.I already have a
Buyer which is an all cash investor..which is the best way to go about this..
Please help
Nancy,You are so right about getting a down payment from your end buyer
down payment enough...To keep them right! Still you never know who is
going to walk away from a FAT down payment! So proof positive...How important
a buyers list...IS!
Great post Nancy.
And,MTNVIEW! Remember...All we are doing is buying property.
Most of all...The coach is always right!
Randy
M Jones (official coach) makes a good and valid point, though. "Once you have assigned the contract, you have no further obligation to it. That obligation is now the assignees."
Both methods do make sense, although, when contract was drawn up it should have read "and/or assigns".
And if end buyer walks, you have his deposit for your time and effort.
Bruce