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Pure Option #2 Grrrrrrrr


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#1 Learning and Burning

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Posted 25 May 2016 - 01:21 PM

Hi Guys.

I got another Pure Option that buyer wants to put my assignment fee through escrow. This one is in California and escrow is saying they can not pay anyone out of escrow that is not the owner on record or a licensed realtor.... 

What is the protocall for a pure option when i find a buyer? I am guessing it is the Assignment agreement where i am assigning my interest to the buyer for 5k and he also gets my Pure option agreement i have with the seller? So i get something in writing? I have nothing in writing so no one is obligated? Good Grief......

Scenario.

Pure option for $32,500

Sold for $37,500 Seller is aware of my $5 000 fee has no problem. he opened escrow with a sale price of $32,500 and says he doesnt want to deal with the 5 k that between me and the buyer. Which it is but buyer wants to put the 5 k in escrow as well. So wtflip? 

 

Learning and burning.....

 

 



#2 MichaelC

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Posted 26 May 2016 - 05:40 PM

What is the protocall for a pure option when i find a buyer? I am guessing it is the Assignment agreement where i am assigning my interest to the buyer for 5k and he also gets my Pure option agreement i have with the seller? So i get something in writing? I have nothing in writing so no one is obligated? Good Grief......

 

You're correct.  You have an Option Agreement between yourself and the homeowner.  Said agreement gives you the right to assign.  You found an interested party to assign the deal for $5K.  You fill out an Assignment Agreement, collect your assignment fee at that time, and the assignee steps in for you and deals direct with the homeowner.  That is the usual protocol.



#3 transactionsengineer

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Posted 29 May 2016 - 09:13 AM

This one isn't difficult to handle. You said that your assignment fee is to go through escrow. This is so that parties won't have to hand you the fee. It comes from the deal.

Here's what you can do:

1. Inform the seller (Homeowner) that the buyer wishes to have the assignment fee covered at escrow.

2. Tell the seller (homeowner) that to release the pure option, you'll need the seller to sign an invoice for your fee to instruct escrow to pay you in exchange for the option release.

3. Submit the invoice to escrow and receive a written confirmation.

4. Sign an assignment form releasing the pure option and provide both option and assignment to the seller (homeowner) who will submit it to the escrow officer.

5. Wait for disbursement at closing. Your fee will be paid as a transaction consultant from escrow disbursement.

* From your friendly neighborhood Transactions Engineer.

#4 MichaelC

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Posted 29 May 2016 - 12:51 PM

Thanks, Daniel.  Appreciate your help with this.






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