Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
Doug Pretorius (ON)

Option clause

Recommended Posts

I'm interested in shifting away from special "option" contracts and use the standard realtor offer to purchase instead. But I still want the safety of an option without having to fill the offer with all kinds of conditions.

 

Scott Rister has an article suggesting a solution and I'd like to get some thoughts on whether this will really fly, to me it seems too simple, but who knows. He says he adds the following clause to any standard offer to purchase to turn it into a straight option:

 

"Seller grants buyer exclusive 30 day (60,90) option to purchase property at said price and terms."

Share this post


Link to post
Share on other sites
I'm interested in shifting away from special "option" contracts and use the standard realtor offer to purchase instead. But I still want the safety of an option without having to fill the offer with all kinds of conditions.

 

Scott Rister has an article suggesting a solution and I'd like to get some thoughts on whether this will really fly, to me it seems too simple, but who knows. He says he adds the following clause to any standard offer to purchase to turn it into a straight option:

 

"Seller grants buyer exclusive 30 day (60,90) option to purchase property at said price and terms."

 

 

YES. This phrase is perfectly legal and most of all EFFECTIVE.

 

Most sellers don't like to use an Option (they don't think that they hold much weight). They want to use a "real Purchase & Sales Agreement". :D

 

So, you give them want they want (a "real P&SA) but you also still get around having to commit (actually go thru with the sale of the property if you can't sell your option) by writing in YOUR terms and price on YOUR own PURCHASE & SALES AGREEMENT. :(

 

I have a sample that he gave me as well.

 

Doug, I have been advised by my other partner / mentor (he's been in the biz for over 40 years) to use the above-noted phrase in ADDITION to another "contingency". :(

 

Let me find my notes that I took from him and I will fire it off to you!

 

Cheers,

 

WCG

Share this post


Link to post
Share on other sites

Ray Como's beloved "only clause you'll ever need" is:

 

"This offer is subject to the inspection and final approval of the property

by the Buyer and/or the Buyers assigns prior to the actual closing date."

 

Maybe use those two together?

Share this post


Link to post
Share on other sites
Ray Como's beloved "only clause you'll ever need" is:

 

"This offer is subject to the inspection and final approval of the property

by the Buyer and/or the Buyers assigns prior to the actual closing date."

 

Maybe use those two together?

 

 

Yes, you always put those contingencies, as well as others if you wish, into your offer ALWAYS!

 

You also need to make some sort of "payment" too. Like, anywhere from 1 grand - $10,000 grand or so. Don't worry, there's a trick around this one too!

 

My notes are at home so I will have to dig 'em up for ya still.

 

Remember, whenever you draw up a P&SA, you make sure that it is slanted in YOUR favour -- ALWAYS!

 

There are two different styles that you will ALWAYS use that will be slated in YOUR favour.

 

1. When YOU are SELLING.

 

2. When YOU are BUYING you use a different one.

 

I have some of these samples Doug from the Great Oz if you're interested as well!

 

Cheers,

 

WCG

Share this post


Link to post
Share on other sites

LOL, getting back to my original desire... I did say I wanted to use a contract WITHOUT filling it with clauses.

 

Payment? You don't need no stinkin' payment! If the contract is not going to be looked over by a lawyer then you can get away with a $1 token. Otherwise you can put in "TBD" or just leave it blank and pretend you forgot :D

Share this post


Link to post
Share on other sites
Payment? You don't need no stinkin' payment! If the contract is not going to be looked over by a lawyer then you can get away with a $1 token. Otherwise you can put in "TBD" or just leave it blank and pretend you forgot :(

 

Doug, I didn't say that you had to make a payment, I said not to worry because you can get around it.

 

However, some VENDORS (that I have dealt with) wanted something more substantial than just $1.00 or $100.00.

 

What I will "give them" is just an illusion anyways (they just don't realize it) BUT it is legal! :D

Share this post


Link to post
Share on other sites

×
×
  • Create New...