Title Question

[salsadunes 0]

Hey Micheal,

Just got the manual, great stuff. Im excited to get started and close my first deal.

My question is, could there be a title issue that would cause a wrinkle in a CA? Say like when the T/B go's for financing? That the seller didnt disclose? Not sure that this would be my concern since im out of the picture now. Or if it's a concern at all?

 

Thanks for the knowledge.

[Adam King (MI) 1]

Hey Micheal,

Just got the manual, great stuff. Im excited to get started and close my first deal.

My question is, could there be a title issue that would cause a wrinkle in a CA? Say like when the T/B go's for financing? That the seller didnt disclose? Not sure that this would be my concern since im out of the picture now. Or if it's a concern at all?

 

Thanks for the knowledge.

 

Yes, it's a concern but the agreements should state that the seller should deliver clear title or the option consideration should be fully returned etc. I even go as far as to have the seller pay the tenant/buyer an extra $500 for liquidated and complete damages.

Hope that helps,

Adam (aka Michael for tonight)

[MichaelC 160]

Wow! An Adam King sighting! At 2:30AM, under the cover of darkness, of course. . .

With a CA, you are for all intents and purposes, out of the picture once you assign the deal to the t/b. So what happens a year down the road shouldn't suck you in. So the agreements used in the CA don't reference this. If you want to add a clause to address this issue, you can certainly do so. As an example, you'll find one in the agreement used for doing a sandwich lease, (Page 3, Paragraph 17).