frmtgrl 0 Report post Posted June 15, 2005 Hi All, Sorry, I haven't posted in a very long time. I am about to complete my first deal! It's a two year CA, on a two story 3bd/2 1/2 bth house, purchase price of $790,000, $1,000/mth rent credit. $10,000 option consideration to me! The tenant buyers and owners will be signing on Sunday. Just a little glitch. The owner's were supposed to perform some repair work in the house before the tenants move in July 1. It looks like they won't be able to do that but are willing to pay for the repairs upon their approval if the tenant buyers get someone to come in and do it. Should I just write up an addendum to the contract for this and if so, give me some pointers on the verbage to use. Thanks in advance! Lisa Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted June 15, 2005 Lisa,NOT A DAMN ATTORNEY, but..... I have been in this position before myself. Here's what I did.... Since the money is coming to you, you really want to close, assign and boogey. The verbiage could be something that explains that if the repairs aren't made, the tenant/buyer is not obligated to pay rent until they are finished etc. If accepted, then the homeowner is motivated. BUT, in most cases it usually would work out that the general price of repair would come off the sales price instead. That way the homeowner isn't as much obligated, but the tenant/buyer still wins. Just an idea.Adam Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 15, 2005 Hello, Lisa! Good to hear from you after all this time! And with great news, no less. $10K in your pocket? That'll buy a few tanks of good ol' California gas for you. Since the money is coming to you, you really want to close, assign and boogey.Boy, if ever a line was worth repeating! Get it done, Lisa!Should I just write up an addendum to the contract for this and if so, give me some pointers on the verbage to use.This shouldn't be a big deal at all. In fact, many t/b's prefer to control this and have someone of their choosing do the work. However, you want to be sure you're not springing this change of plans on them at the last minute. You may come off looking like a con artist. Be sure they know before all get together on Sunday.An addendum would be fine. As to the wording, what work is being done and what are the estimates of repairs? We just need to satisfy both parties with the wording so both are feeling warm and secure, and you can get paid. Share this post Link to post Share on other sites
Guest Guest Report post Posted June 15, 2005 Thanks Adam and Michael! The tenant buyers already know, it was their suggestion that the addendum be made with the repairs noted. Here are the repairs. 1)Two upstairs bathrooms need carpet replaced with either new carpet or other suitable material. 2)Interior touch up painting 3)Sliding glass door latch broken 4)Dishwasher repair The owner has agreed to pay for these items upon his approval. I don't know what the estimates of these items would be. Can we just put in that the owners will pay upon their approval of cost and work done? Thanks, Lisa Share this post Link to post Share on other sites
frmtgrl 0 Report post Posted June 15, 2005 Okay, next time I'll try and remember to sign in before I post! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 15, 2005 The owner has agreed to pay for these items upon his approval. I don't know what the estimates of these items would be. Can we just put in that the owners will pay upon their approval of cost and work done?Sure. That list is minor doings, and shouldn't create issues for either party. List the agreed to repairs, who is responsible for what, and throw in a time frame for completion. Share this post Link to post Share on other sites
