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and put a new t/b in afterwards. Of course i have no problem with the 2nd, but does anyone guarantee to cover attorney fees. The seller has had her home listed for 6 months and wants to to a co-op assignment now. what would you tell her?

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Although we have everything in place for the eviction, I do not put in the contract that I will pay for the eviction, after all, in a CA, you are the tenant, so you can't evict yourself.

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and put a new t/b in afterwards. Of course i have no problem with the 2nd, but does anyone guarantee to cover attorney fees. The seller has had her home listed for 6 months and wants to to a co-op assignment now. what would you tell her?

 

I know Joe McCall tells his sellers that he will pay for the eviction if it comes to that. He claims it costs, what, $200? If that's true, I'd be fine paying that as well, but I'd make sure and ask around to see what it really costs and see if you're comfortable paying that. If you're not, you can always politely remind the seller that you aren't a property management company that takes a cut of the rent every month and therefor cannot guarantee a T/B's performance (in other words, paying eviction fees might only be appropriate in a sandwich lease option if the costs are too high).

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Although we have everything in place for the eviction, I do not put in the contract that I will pay for the eviction, after all, in a CA, you are the tenant, so you can't evict yourself.

That makes sense, but what do you tell the seller? I thought about offering to pay for 1 year of pre paid legal for her, but since she's a lawyer [not sure what type] I don't know how she will respond.

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The seller is an attorney...so no legal fees, and in my neck of the woods if the judgment is against the tenant, they would pay court cost with an eviction. Seems costs would be minimal to the seller.

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Before you even mentioned that the seller was an attorney, that was my first thought. My answer from the moment the issue came up would be "No!" The moment you inject yourself into a deal that you assigned to a third party, is the moment you have crossed the line from being a former principal in the deal to brokering real estate without a license or, worse, practicing law without a license. Offering legal services to a homeowner is a sure fire magnet for a lawsuit coming down on your head and an investigation by the state attorney general.

Look, the whole concept of a cooperative assignment is to avoid many of the entanglements of traditional real estate. If some smug homeowner insists you make guarantees you can't make, or perform duties you can't perform, move on and find another deal.

By the way, find me an eviction that costs only $200 and I'll pay for it. :D Any attorney who isn't delivering pizzas on the side will readily charge triple that. And if you try and do it yourself, your legal fees will be twenty times that amount when you are sued by the t/b and fined by the judge for being in the middle of a deal with no acceptable explanation as to why.

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Before you even mentioned that the seller was an attorney, that was my first thought. My answer from the moment the issue came up would be "No!" The moment you inject yourself into a deal that you assigned to a third party, is the moment you have crossed the line from being a former principal in the deal to brokering real estate without a license or, worse, practicing law without a license. Offering legal services to a homeowner is a sure fire magnet for a lawsuit coming down on your head and an investigation by the state attorney general.

Look, the whole concept of a cooperative assignment is to avoid many of the entanglements of traditional real estate. If some smug homeowner insists you make guarantees you can't make, or perform duties you can't perform, move on and find another deal.

By the way, find me an eviction that costs only $200 and I'll pay for it. :D Any attorney who isn't delivering pizzas on the side will readily charge triple that. And if you try and do it yourself, your legal fees will be twenty times that amount when you are sued by the t/b and fined by the judge for being in the middle of a deal with no acceptable explanation as to why.

I thought $200 sounded a little far-fetched, but what do I know? I'm just a guy who read another guy's manual! :P With that said, I agree 100% with the above statements and am in the process of altering my business model. Just have to tell the seller that we cannot guarantee T/B performance and we also cannot offer legal advice as we are not attorneys (nor do I play one on TV). I'm hoping that by giving the seller a portion of the option consideration, they will be willing to get over that obstacle in their head.

 

The seller is an attorney...so no legal fees, and in my neck of the woods if the judgment is against the tenant, they would pay court cost with an eviction. Seems costs would be minimal to the seller.

Is this typical in most areas? I know I know, it varies by area and judge I'm sure, but I'm just curious if others have seen this. I'll have to talk with my landlord buddies and see if they've encountered this around here.

 

Also - John, what do you mean by having everything in place for an eviction? Do you just mean that you have all the paperwork at the ready for the homeowner to use if they need it? Do you ever pay for a homeowners eviction costs?

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. . .Just have to tell the seller that we cannot guarantee T/B performance. . .
Precisely why you should never put a t/b in any CA deal. Let the homeowner make the call so they can't come back and point fingers at you later on if the t/b isn't up to snuff.

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A guy in a van, a bat, pepper spray...you know...everything in place....

Actually, we have a company we use here to evict and it costs $150.

If we have to file a writ, it's an extra $150.

If you did it yourself it's like $85 for court costs, here anyway.

Although we'll pay for the eviction, because we have the connections, I do not put it in the contract.

Having said that, MC is correct regarding the line you walk.

I'm OK walking that line because of the company I use, and the way I do it, but it is a line that you really need to think about in regards to whether you really want to walk on that line or not.

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. . . and this is the "Street Smarts."

 

Here something that blows my mind. By letting the seller approve the t/b and then say the t/b falls through. That seller will call back to do the deal again. It's being straight with folks and not promising things you can't do.

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