mpine 0 Report post Posted August 28, 2004 in about 12 hours I have a meeting with a homeowner, contracts in hand. I want to be sure the contracts are correct... Option to Purchase - Between myself and seller CA Rental Agreement - Between TB and myself CA Assignment - Me assigning my rights to the T/B then I bump up my rate to whatever i think i should get as my option money, or they can afford..... and I move on to the next deal.... Thanks in advance, Mike Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted August 28, 2004 Mike, Rental agreement between you and the seller. "You" as the tenant/buyer.Option to purchase between you and the seller. "You" as the optionee.Cooperative assignment agreement for the consideration. EVERYONE signs, but you are assigning it to the tenant/buyer. It is in the agreement that any assignment fee is considered option consideration for the assignee. AKA the new tenant/buyer. Regards,Adam Share this post Link to post Share on other sites
mpine 0 Report post Posted August 28, 2004 How many sets of contracts should I bring? I am used to closings with banks, so i may be making this more complicated then it is..... Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted August 28, 2004 Mike,I am used to closings with banks, so I may be making this more complicated then it is.....LMAO!!!!!!!!!!!!!!!!!!!!!!!Yeah, join the damn club!Just bring one. Figure the price and rent amount out with the seller, sign the agreements and leave with them. I'm not sure if MC has it in his agreements, but there should be a "subject to finding new buyers" clause in there somewhere. Or I would simply leave the dates (rent terms) of the agreement blank until you can find a buyer. That way you're not liable for paying rent if you don't move the property. And if you make a mistake somewhere, you're the only one holding proof there was ever a transaction. I DO NOT advocate doing this and screwing the seller so make sure they know your true intentions. If it is your intention to simply do a CA, then the seller should be in full awareness and not expect you to be renting it yourself.Regards,Adam Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted August 28, 2004 Mike,I just read the CA lease agreement and there is a clause that allows the "original" tenant to cancel the agreement BEFORE the rent term takes effect. It also says there will be no "paid" monies refunded if there is a cancellation. This should cover you just fine because there's no money being given to the seller...right?Regards,Adam Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 28, 2004 Mike & Adam, I'm not sure if MC has it in his agreements, but there should be a "subject to finding new buyers" clause in there somewhere. Or I would simply leave the dates (rent terms) of the agreement blank until you can find a buyer. That way you're not liable for paying rent if you don't move the property. And if you make a mistake somewhere, you're the only one holding proof there was ever a transaction.Look at the top of page 2 of the CA Lease -- #8 lets the original tenant/buyer that's YOU, cancel the agreement at any time prior to the start date. If you are unable for whatever reason to move the property this IS your out. Just cancel in writing prior to the Lease start date. The contracts are dated as of the day you do the deal. Then under "Fixed Term Agreement" set the date of the lease, set the lease start date as far out as the seller will agree. I'd ask for sixty days (90 days?) before the lease starts. The seller is going to want a copy of the contracts. I've been taking ONE set with me. I don't want two originals out there. After signing I copy and send it via mail. If it is your intention to simply do a CA, then the seller should be in full awareness and not expect you to be renting it yourself.Absolutely. Remind them of the benefits and that the contracts are entirely in their favor (except for a couple of sentences that are designed to protect you.) Mike --The contracts are:*CA Lease -- This will be signed by you as the tenant, and the seller as the landlord.*Option to Purchase -- This will be signed by you as tenant/optionee, and the seller as seller/optionor*CA Assignment of Agreement -- All 3 parties will sign and you will be released of further obligations and liability. On the Option to Purchase -- Where it talks about how much option money I write in "to be determined," and where it says, "paid on", I write in "a later date." When you find your tenant/buyer and your seller approves the tenant/buyer, you'll need to redo the contracts to correct the lease dates and the option money. Hope that helps some!Kim Share this post Link to post Share on other sites
mpine 0 Report post Posted August 28, 2004 Looking at the assignment of agreement form... ok, I get the assignment form now, I am the Assignor and the TB is the assignee, and the seller is still the seller... good enough.... Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 28, 2004 Mike, Looking at the assignment of agreement form... ok, I get the assignment form now, I am the Assignor and the TB is the assignee, and the seller is still the seller... good enough....Just make sure you understand the other two contracts, you won't need that one for a couple more days! But yes, you've got it right. Share this post Link to post Share on other sites
puls1234 0 Report post Posted August 28, 2004 mpine you have your forms messed up on one of them. CA residential lease agreement- Between you and the seller, only the 2 of you sign Option to purchase- Between you and seller, only the 2 of you sign CA Assignment of Agreement- you, seller and t/b all sign Share this post Link to post Share on other sites
grannyguru 0 Report post Posted August 28, 2004 Good luck Mike! Alice Share this post Link to post Share on other sites
-Tony- 0 Report post Posted August 28, 2004 mpine you have your forms messed up on one of them. CA residential lease agreement- Between you and the seller, only the 2 of you sign Option to purchase- Between you and seller, only the 2 of you sign CA Assignment of Agreement- you, seller and t/b all sign The CA king has spoken mpine you have your forms messed up on one of them. CA residential lease agreement- Between you and the seller, only the 2 of you sign Option to purchase- Between you and seller, only the 2 of you sign CA Assignment of Agreement- you, seller and t/b all signIt was so important he felt he had to say it again Share this post Link to post Share on other sites
mpine 0 Report post Posted August 28, 2004 Well you guys and gals all definitly RULE!!! I am off to my hopefull client. This is actually what we worked out... Homeowner is holding an open house today, so if she likes what I have to say, I will take rental application on the spot and sign contracts with Mr/Mrs Homeowner and fill the property. If they do not like what I have to say or my contracts, they felt I was so charming they would appreciate it if I would stick around and pre-qual people for mortgages. I am pulling for the CA, but a mortgages make me happy too... Mike :ph34r: Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 28, 2004 So Mike, how'd it go? It sounds like it was a win for you either way. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted August 28, 2004 Mike,While we're on the topic, during my CAs I am starting to get my sellers interest only loans and helping them invest their money. That way they can pull it out, have some cash and invest what's left while someone else makes their payment which is now much lower than it was and usually advocates a stronger cash-flow.Let me know if you would like to know how I do it. I'm not going to post it on the site because it would clearly be a conflict of interest.Regards,Adam Share this post Link to post Share on other sites
Guest BEV! Report post Posted August 28, 2004 Well you guys and gals all definitly RULE!!!I am off to my hopefull client.Mike's going in!!, make us proud Pine Share this post Link to post Share on other sites
