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Special NC REIA Alert!


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#1 <Steve>

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Posted 02 June 2011 - 11:47 AM

June 2, 2011

If you are in North Carolina and have a minute this a.m., please email your HOUSE representatives and ask them to vote "yes" today for H654 Amending the Homeowner/Homebuyer Protection Act.

This is the NC REI Coalition supported bill to eliminate some VERY prohibitive portions of the Homeowner/Homebuyer Protection Act passed last year which tie the hands of investors purchasing properties facing foreclosure, selling with lease/options, or selling with a contract for deed/land contract.

The bill was successful in committee yesterday and is going to be voted on the NC House floor today after 1pm. Please email your representative now. They get emails early in the a.m.

IT'S SIMPLE; Just say that you are a constituent of the Representative (or live in ___), that you are a part time or full time real estate investor, and that you are asking that they vote "yes" for H654 today.

Please visit the NC Legislature Website at: Click Here and click on the member(s) for your respective district and e-mail him/her respectively.

Thank you!
To Your Good Fortune,

Tony Robinson
Board Member
Triad REIA Representative to the North Carolina REI Coalition

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#2 MichaelC

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Posted 02 June 2011 - 11:50 AM

Good luck with that, Steve. What's the early betting line on this bill passing?

#3 <Steve>

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Posted 02 June 2011 - 12:47 PM

It has passed some readings and has had 1 edit so far. The final vote is for this afternoon, so will see.

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#4 <Steve>

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Posted 03 June 2011 - 08:30 AM

Passed! on the second reading and second edit.

Changes for Lease Options; it is defined that option consideration paid is NOT an equitable interest fot the tenant/buyer. And, if one does not comply with the law it is NOT considered "Fraud."

Another item I wished would have gone through didn't. You still need to go to court and have the Magistrate cancel the Option to Purchase in an eviction and it needs to be recorded. For me I will just let the option expire and evict on the Lease.

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#5 MichaelC

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Posted 03 June 2011 - 08:37 AM

Overall, that's good news, Steve. One of the rare instances when the empty suits got something right.

#6 pilot76180

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Posted 09 June 2011 - 02:22 PM

So the option has to be recorded, and if they tenant is evicted or does a midnight move, then you have to go to court to have the JP sign off on the Option being rescinded?
IF you don't, as you say, it will expire, but hopefully the former Optionee won't claim it's still in effect.
I can't see a tenant doing that though, it's not like they can buy the damn thing if they moved out or were evicted.
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#7 <Steve>

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Posted 09 June 2011 - 03:03 PM

So the option has to be recorded, and if they tenant is evicted or does a midnight move, then you have to go to court to have the JP sign off on the Option being rescinded?
IF you don't, as you say, it will expire, but hopefully the former Optionee won't claim it's still in effect.
I can't see a tenant doing that though, it's not like they can buy the damn thing if they moved out or were evicted.

I agree. Just getting it notarized and recorded at the start is a pain. No way can I see another memorandum recording happening to rescind. As is typical this is government regulation and they do not get the flow of business.

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#8 <Steve>

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Posted 09 June 2011 - 10:12 PM

The law states the memorandum is required to state "the time period during which the t/b must exercise the option." I am going to just ad verbage to the option agreement and the memorandum. Something like:

This Option Agreement shall expire on [date], or at any time prior when possession is returned to Optionor/Seller, and unless exercised or extended, Optionee shall have no further rights to purchase the above property, and the Agreement between the parties will be of no further effect or force.

That should cover an eviction, midnight run or mutual agreed. In all cases, when I gain possession either in an SLO, or the seller in a CA, the option will have expired. No need to cancel or rescind.

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#9 MichaelC

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Posted 10 June 2011 - 10:09 AM

The first thing we do, let's kill all the lawyers.

William Shakespeare, Henry The Sixth, Part 2 Act 4, scene 2

#10 <Steve>

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Posted 03 March 2013 - 12:28 AM

Oops,  Looks like I am getting snagged with my state’s Home Owner Home Buyer Protection Act.  Seems a t/b from a CA deal last year is skipping out on his lease and has brought an attorney in and nit-picked the deal.  Seems I was a little late in getting the memorandum recorded and now the attorney is demanding the option consideration be returned.  Real Bummer. :glare:


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#11 MichaelC

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Posted 03 March 2013 - 08:14 AM

Ugh.  What does this mean for you, Steve?  Can you fight it?  Pay the t/b to go away? 



#12 <Steve>

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Posted 03 March 2013 - 12:47 PM

Hey MC-

 

I thought about calling their bluff and fight it, but the regulation is what it is.  The t/b is using it to get out of his obligations in the deal.  His attorney will just tack on another $2K or so for attorney fees etc. and then also go after the seller if he can't get it from me.  It was like only a three day notice and the t/b was out yesterday.  The seller is out of state and is now stuck having to make the payments.  They were freaking out some.  I think the best I can do is to end this is by paying for the t/b to go away and it will also help the seller move on.  Good example how this type of regulation helps no one.  I'll just take it on the chin for this one.


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#13 MichaelC

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Posted 03 March 2013 - 12:54 PM

That sucks.  Sorry to hear it.  Part of doing business in our over-litigated society, unfortunately. :angry:



#14 <Steve>

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Posted 08 March 2013 - 03:49 PM

Done deal.  They agreed to my offer, which was their demand plus my releases.  Looks like I will have a "refund write off" on the next tax return and the seller can move-on.

 

Now on to the my next legal issue between a seller & tenant/buyer for property damage.   :lol: They have been in the courts for about a year now and a judgment passed and is now on its second appeal.  The t/b only owes $1K and keeps appealing.  I have been to court twice as a witness and there isn't a judge in town that wants to hear it.  They just keep rescheduling and passing it on to the next judge.  :P Quite funny except it makes me have to get up to early.  Oh, the Naked agreements held strong in court.  These guys are just, well, stupid.


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#15 MichaelC

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Posted 08 March 2013 - 04:01 PM

Good to hear the drama is over and you can move on to bigger and better things.  Always good to put the negative energy behind you. . .which is the advice I would pass along to that buffoon tenant/buyer who is spending years of his life battling over a grand.

Good to read our agreements held strong! 






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