CAR forms - Posted by Bill

Real Estate Investing
#1

Posted by Irwin(CA) on December 30, 1998 at 13:08:40:

Bill,

I don’t think there is a “one size fits all” answer to the deposit issue. I don’t like to make large deposits but I’d never let the size of a deposit stand in the way of a deal. My offers include a $500 deposit but if the seller feels better with a larger deposit, so be it.

Irwin

#2

CAR forms - Posted by Bill

Posted by Bill on December 29, 1998 at 19:17:15:

In the residential purchase agreement and receipt for deposit form used in California there is a section that deals with liquidated damages that asks for your initials and one that deals with arbitration that also asks for your initials. How do you experienced folks out there handle this? do you initial them or leave them blank, and why. Thanks in advance for your input. Bill

#3

Re: CAR forms - Posted by Irwin(CA)

Posted by Irwin(CA) on December 30, 1998 at 02:08:03:

Bill,

I usually use the CAR form because it looks “official” and seems to give some people a warm fuzzy.

I always accept (initial) the liquidated damages clause because it limits my liability to my small deposit when buying and provides access to the buyer’s deposit when I am selling. When selling, I try to get a relatively large deposit to help retain the buyer’s interest. By the way, I never lost a deposit nor have I had to retain a Buyer’s deposit.

I NEVER accept the arbitration clause because I don’t want some yutz arbitrator deciding an issue based on anything other than legal principles. If there is a problem, I want legal principles to apply. By the way, I’ve only had to go after a seller once in small claims court when he decided to reneg on our deal. In that situation, I recovered my expenses.

Hope this helps.

Irwin

#4

Re: CAR forms - Posted by Bill

Posted by Bill on December 30, 1998 at 08:24:22:

Thanks for the information Irwin. With the initialing question answered, that brings up another point, Deposit amount. What are the rooms thoughts on deposit amounts. I hear people saying that a large deposit reflects an attitude that youre very serious about your offer. Then some say that the smaller the better. In this case, is Bigger better? Thoughts please. Thanks in advance for your ideas. Bill