The Pure Option agreement specifies that you have the right to assign or sell your interest in the property to a third party. I'm not the last word regarding California real estate laws, but I can't believe that assigning an option agreement can be deemed illegal, even in a state as over regulated as CA. If it turns out it is, a good lawyer will find a way around it, possibly even bringing in a licensed Broker to make the deal official. It'll go down, Mike, but you may have a few extra hurdles to jump. Keep us posted.
First Pure Option to close
Posted 04 March 2016 - 11:14 AM
Sent the agreement to lawyer for review. Waiting word now. I will ask about the finders fee as a way fer me to get paid. my biggest concern is getting a commitment in writing on this on asap. Any suggestions to make get it in writing will help me now..
Posted 04 March 2016 - 02:17 PM
As I mentioned above, for the time being you can use an assignment agreement between you and your buyer until the attorney gets back to you.
Posted 04 March 2016 - 05:28 PM
I am having buyer sign my assignment agreement with 5k down and will wait to hear from lawyer who has my pure option agreement which is what i have from the owner. Does this sound correct? Buyer called today asking what and when as they are ready to put earnest money down. Told her the truth and so going with that till i hear different so to get a signing done today. Does this make sence to go about it this way?
Ohh the adult beverage after this one better be a stiff one....
Posted 04 March 2016 - 08:07 PM
Makes perfect sense, Mike. And not to worry because from the looks of things your buyer seems legit and ready to roll. So in the meantime, get an assignment agreement signed and collect the $5K. Drinks to follow. . .
Posted 04 March 2016 - 08:55 PM
I do appreciate holding my hand here. All i can do hurry up and wait. So now the lawyer thing i did feel intimidated there and so really want to make sure i cover my ars...Street name is the same as the buyer who owns most of the block and so yes he is solid. Seller i had a slo with for the last four years where the tenant passed last December. She has decided to sell as she is older and has agreed to the terms offered. So its a solid seller and buyer its me thats clogging the wheel. Property is owned free and clear. So what will i be looking for the lawyer to do? I am not for sure there what to ask. I told them my position and that i was looking to secure my interest in the deal as a principal. With my Pure Option agreement. These lawyer work for me so to speak so it will be interesting to see how they tell me to play this out. Am i on the right track?
Posted 05 March 2016 - 07:27 AM
Yes, you are on the right track. The attorney's job here is to guide the deal through to its desired conclusion: the transfer of title, and funds distributed as described. As I write this it is Saturday morning, so I have to assume you won't hear anything until Monday.
Posted 06 March 2016 - 04:28 PM
To have the seller, buyer and myself get paid? Lawyers concern is i am acting as a broker and i can not do that. I agree so with this one am i drawing up the purchase agreement? Who does this based on this deal and me not acting as a broker? That i am still not clear on.. My concern is they will not be familiar with the Pure option agreement. Now the 5 k from sellers buying my interest what do i do with that till the meantime? and do they make the check payable to me? Or escrow? Im sure im being a P.I.T.A but i want to be sure i kow what i am asking to de done here.. Looking to hear from lawyer tomorrow Monday.
Posted 07 March 2016 - 05:50 PM
To play devil's advocate...
If you do anything other than assign your interest in the deal (the contract) you are brokering. If you draw up a contract to purchase for the seller and buyer you are practicing law and need to be a licensed attorney. If you hired the attorney, he is representing you, so tell him what you want to do and let the attorney do the work. Keep you nose clean and just assign your option contract. You do not need to go to close if you have already been paid. I would just hold the funds in your account for now, unless your attorney structures something different.
Just a kid living the dream
Posted 07 March 2016 - 08:54 PM
K.I.S.S is my intention. This being my first Pure option i will head all of yours advise. My concern is to cover my ass and let the lawyer tell me how to get this to the finish line. I am getting my fee and will hold on to it till i am told otherwise. Now if the seller were to draw up the pruchase agreement and open escrow on her own based on the terms she and buyer have agreed upon, would this keep me out of the brokering/lawyering? Me simply being sellers ear so to speak? Buyer and seller are wanting to get this done.... Hopeing to hear from lawyer in the morniong cause they didnt make contact today... Go Figure...
Posted 07 March 2016 - 09:32 PM
Yes, I would let the seller and buyer work out what ever they want. Understandable you don't want to leave them high and dry either, but if you have assigned the deal you are out. I would only be the source of the source.. In other words, I would recommend to them a good attorney or a legal forms web site like USLeagalForms.com. Giving advise to the buyer or seller needs a license. If something happens down the road you don't want them coming back on you.
I blame the law all the time. Sorry, by law I can't do that, I would need to be a licensed attorney, but I know a good attorney you can contact who can put it all together for you. I am sure they would appreciate you pointing them in the right direction.
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Just a kid living the dream
Posted 08 March 2016 - 11:44 PM
So yes the course is to let them work out the details. Talked to seller today who is cooler then ice and on board for getting this done and me getting mine. She understands i am not able to help her with this part other then the source of the source. (i heard this somewhere shout out.) Buyer says he want to sign a sales agreement before giving up any money now. Seller opened escrow today on her with my pure option agreement which was for $80000. She has agreed to go for 75 hence to seller and mine make the 80. So good she did her own agreement and opened escrow..right? Now all is in motion amd now WTFlip?
Lawyer called me today while at my kids softball game @ 4pm look to talk with her tomorrow..
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Posted 10 March 2016 - 07:38 AM
You're rounding the final turn, Mike, heading towards the finish line. . .
Posted 19 March 2016 - 09:55 PM
I am getting closer on this one.and glad to say all i did is sell my option and seller and buyer have concluded the terms without me in the middle. Other then me getting paid out of escrow which is set to close this coming Monday the 21st. I did talk with the lawer and she said the issue is the ten dollars i paid seller for the option. But because it was for a small price (80,000) that she didnt see a problem. If it was for more she says there could be an issue, I asked why and if there is an amount that is more appropriate or by law an amount? She said no, but they want to see more of an option money put up so t warrent seller taking it off the market. So not sure what to make of her point.?,?
Adult beverage still pending.....
Posted 20 March 2016 - 06:25 AM
. . .I did talk with the lawer and she said the issue is the ten dollars i paid seller for the option. But because it was for a small price (80,000) that she didnt see a problem. If it was for more she says there could be an issue, I asked why and if there is an amount that is more appropriate or by law an amount? She said no, but they want to see more of an option money put up so t warrent seller taking it off the market. So not sure what to make of her point.?,?
Huh? That doesn't make sense. If there isn't a specific law that addresses this, how is the issue enforced? Ahh, I get it. This is one of those "grey areas" that attorneys use to keep the meter running and pad their billable hours. Either that, or this attorney has an office in the back of one of California's medical marijuana dispensaries and she's suffering from a contact high.
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