What Forms Are Required

[Craig 0]

I am finalizing my first CA tomorrow. Just finished a search on CA's and went back to the manual. When searching I saw several references to making sure the correct forms are used. So would we again clarify for the record what forms are required with the homeowner before and after the tenant is found.

 

Please Confirm the proper forms

I will need CA Residential Lease Agreement on manual page 101-105.

and will need Assignment of Agreement on manual page 106.

 

Also, the homeowner has requested if he sells it on his own before I get a Tenamt/Buyer we have a clause which allows him to do so. How should I add this into the CA Residential Lease and Assignment of Agreement?

 

When the tenant has been found what other forms need to be filled?

 

 

Did I just really use a SPELLCHECKER? SURE DID MC. Merry Christmas from MC. :xbiggrin:

[Adam King (MI) 1]

Craig,

You need to put that the option is non-exclusive. This means that if he finds a person before you do, he can move the property by his own authority. BUT!!!!!! I would incorporate a "Non-exclusive circumvent clause" into the agreement. This sounds contradictory, but it's not. You would have verbiage that says that he could fill the property without you, but NOT with someone that you have brought to the property.

I would post such a clause, but I'm starting to have a lot of people that I'm consulting for check out the site. I would be willing to help offline if you wish.

Regards,

Adam

I took part of my post down about the agreements because I wasn't paying attention to MC's methods enough here. Won't happen again. :xicon_mrgreen:

[MichaelC 160]

Craig, for the CA you will need the CA Residential Lease Agreement, and the Option to Purchase Agreement. These are completed between you and the homeowner.

Then, when you find the t/b, you would use the CA Assignment of Agreement. This is signed by you, the t/b, and the homeowner. All parties receive an original of set of documents.

Any questions, don't hesitate to ask. It's important to understand the paperwork and to have it done correctly.

Did I just really use a SPELLCHECKER? SURE DID MC. Merry Christmas from MC.  :xbiggrin:

And you were thinkin' I was the Grinch... :xevil:

[Adam King (MI) 1]

Craig,

I'm having second thoughts about the whole post here. Hold on a sec....

 

This is a sample only! I have used samples like this with my CAs.

 

OPTION TO PURCHASE: It is agreed that Buyer shall have the right (Option) to purchase said property from Seller for $ ________________ (purchase price) payable in cash or by third party financing at any time during the original term of the Option. If Seller should sell said property during the Option term to any other person that is not directly linked or in relation to Your company here, this contract will become void upon written proof of that transaction therefore relieving the seller _______________ from any further involvement from this contract. If said property is sold by seller to anyone, directly associated, or in relation with Your Company Name Here but not Your Company Name Here, such person shall be furnished with the copies of this Agreement and shall agree in writing to be fully bound by the terms with regard to the Buyer’s rights under this Agreement.

 

Again, this is an example!!!

Any open conversation about this clause is welcome. This is NOT the one I use with my CAs, but close. Just thought I would share.

Regards,

Adam

[Craig 0]

Craig,

I'm having second thoughts about the whole post here.  Hold on a sec....

<{POST_SNAPBACK}>

 

Thanks Adam well done.

[-Tony- 0]

I think you should put something in the lines of: if the owner finds a conventional buyer before you find a t/b this contract is null and void.

 

This way he can't rto it out from under you....

[Adam King (MI) 1]

Tony,

Good point. Here's the issue. This needs to be changed to be geared towards MC's contracts. I think I'm making this harder for everyone because of the way I do CAs. This contract would be null and void the second the assignment contract was signed with my technique. It would be replaced by a new option tp purchase that lacked this verbiage.

 

So, let's word it for MC's contracts shall we? I'll give you the first shot.

I'll do my best to contribute from there.

Adam

[Kimberly 0]

Here's my Seller's Cancellation Clause: Should Seller find a Buyer willing and able to pay cash in full, obtain third party financing, or some combination of the two for said property PRIOR to it being filled with a Tenant, Seller retains the right to sell the property and cancel this Contract. Seller also agrees to pay a Flat Cancellation Fee of $_______ to your name/company name which shall be due and payable upon cancellation of this Contract. Seller agrees that he shall not sell said property on a Rent to Own, Lease Purchase, Lease Option, Contract for Deed, or through any other similar type of Contract using differing language to any party other than the Tenant/Buyer as shown on this contract until a minimum of sixty (60) days after the expiration of this Contract.

 

I add the above paragraph in after #8 Cancellation. Upon filling the property with a t/b, I then redo the agreements without the "Seller's Cancellation Clause."

 

Kim

[MichaelC 160]

Kim, that's excellent and fills the need nicely. But, why do it as a matter of routine? When I hear from a homeowner asking me to allow them an out, I will explain that I am not in competition with them, I'm there to help them. That will often get them over the top and onto my side completely. However, should the need for that seller cancellation persist, then I think that paragraph you wrote sums it up well.

[Kimberly 0]

Michael, I don't add it in routinely, I've only used it a couple of times. On the other hand, if the homeowner wants an out and is willing to pay me what I would have made otherwise (or close to it), who am I to say no!

[Craig 0]

Thanks you. Excellent wording and fits into the contract well.

[Adam King (MI) 1]

Guys,

Great thread. Good to see some differing opinions here.

I agree with MC about the fact that you're trying to help the seller. But some times when we're new at this we don't have the experience to come across this way. We can only blame that on our "non use" of MC's teaching.

I also agree with Kim's clause especially about having the seller compensate you if they fill it before you. This way you get paid for your time, marketing and efforts.

Further more, I'm not sure where on the site it is, but we have had this discussion before. And the point was made (To the best of my memory) that if you have to write a non-exclusive option, then the seller should pay for all of your marketing.

And one final note, I don't believe it to be a sissy way out of getting a property properly under contract, but after a some experience with doing deals, having these types of contracts become meaningless unless it's too good of an opportunity to pass up.

Regards,

Adam

[Craig 0]

I would like to thank everyone for their last minute input to this thread. The end result is I added Kims wording into page 2 Par 8 I added it as 8a. The homeowner had no problem with the $200.00 for my expenses if he sold the home before I could find a Tenant/Buyer. I tried to approach him as working together as a service to him without the cost.

 

Best thing is he has 2 more propertys almost ready. I will be going for them too.

 

Thank you all. Now I got work to do. After I have a nice COLD ONE.

 

Thanks again

[MichaelC 160]

Good job, Craig. Only next time shoot for $350. Your time is worth more than $200. And, yes, you're right. You do have work to do. Payday doesn't arrive until you finish the job you have successfully started.

[Adam King (MI) 1]

Craig,

That is awesome. You're onto something good so keep up the good work!

 

Kim,

Great contribution!

Regards,

Adam