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nashvegas

Deal might fall though over smoking on the property

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This deal is sooo close. All the terms have been agreed upon except for this:

 

 

Seller added this to the Lease Agreement:

 

SMOKING: No smoking on the property or in the house/garage.

 

 

Response from T/B:

 

 

3.The smoking clause: It states no smoking on the property or the home. We can agree with no smoking in the house, because we don't allow smoking in our home, but,
We can not agree to no smoking on the property. We can't and won't ask our friends or relatives to go down the street if they want to smoke a cigarette.
We don't see where there is a problem with someone smoking outside in the yard or on the porch.
The wife of the owner doesn't want the house to smell like smoke if they ended up not buying the house.
The husband agrees that not smoking in the house should be the only restriction but his wife wants to leave the
clause in place as is. Even if it ends up being a deal breaker. Wow... So much for them being motivated.
Trying to save this deal. But If the owners do not budge, and this deal falls through, I think I am going to cancel my agreement with them. I don't want to waste my time
marketing the house under these restrictions.
Thoughts?

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They're not thinking rationally right now so work them through the consequences of their actions: "You do understand that if you force this restriction, the T/B will walk away, you'll lose $x immediately and $y in additional lost rent, etc."

 

PS: Why is this clause even in place? Did you allow the seller to write the lease?

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They wanted me add a few minor things to the lease. That was one of them. I didn't realize at the time that they meant no smoking anywhere on the property.

This is my first deal, I'll know better next time.

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Nash, the restriction the owner wants about no smoking anywhere on the property, including outdoors, is irrational. Explain to her the ramifications of her of her decision and the money it will cost her. If that doesn't change her way, call her bluff and cancel your agreement. First deal, lesson learned about ceding control to the homeowner.

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You are so right. She is not thinking clearly. I was able to talk to her directly last night. I reminded her that they get $2500

free money if the T/B does not exercise their option ( I split the option fee with them) plus, they have a security

deposit. She's going to think about it.

 

 

If I do have to cancel... How is that usually done. Do I need to get that in writing? If so, what would that look like?

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If you decide to cancel, something in writing is required. A simple one paragraph will suffice, something like "As per page 2, paragraph 8, I am exercising my right to cancel the lease agreement for the property located at _____________________________ .

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Sure. I handle it as the intermediary. I'll offer my opinion as to whether or not I think it will fly or be a deal killer. But ultimately the parties decide what they will and won't accept. I've had deals die along the way due to unreasonable demands. But for the most part if the parties involved are sincere and want the deal to get done, it'll work out.

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UPDATE

 

Well, I politely took back control, and got the deal done. Thanks for your help getting me through my first deal!.

 

BTW

 

Michael, I don't know if you remember, back in 2009 I signed up for your mentoring program, at the time I had a lot

going on in my life and had to shelve everything. Always knew that this was a great opportunity and always had it in the back of my mind

to get back into the game. Well that time is now! Just for the record, though delayed, your mentoring program has another success story :)

 

Thanks for everything

 

Warren

Nashville TN

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Warren, good going. Deals don't always go according to script. Glad to read you didn't let a curveball get past you.

Yes, I do remember you, Warren. Your success, delayed as it was, is still noteworthy. Congratulations on your persistence. It's like I always say, this stuff works if you do. :)

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Thats funny... Sellers can be strange!

Glad it worked out, I was going to say buy the tenant/buyers a couple of those electronic cigarettes and cartridges... technically, not smoking (And could even 'smoke' inside without violating the no smoking clause!) and it would be cheaper than loosing the deal!

Plus, it's good for their health!

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