Contract of sale negotiations - Posted by Lewis

Posted by jeff on October 05, 2002 at 21:18:58:

  1. as long as your statement is signed by both parties? why is this tripping them up… and what is its purpose? all they have to do to negate that is not sign your release. and why would you give them the right to so easily dispute your ownership of the deposit? good clause, now minus the both party agreeability and you got that covered. now, about their disapproval, eliminatnig this outage from their grasp will only make this one worse. i hate to tell the buyers, but that is the standard practice when dealnig with deposits. the entire purpose of the deposit is to ensure they follow through with their purchase. any deposit they make with any other property will be handled inthe same manner, they will have to deal with this with any seller or agent, they need to realize that and move on with their life. apparently they already have ideas that they may not close, if this is the case, and it doesnt bother you much, include a clause that allows them a clear out for that ONE reason. keep the deposit for anything else.

  2. im assuming that you dont want to add this provision and the buyers are pushing it on you? i personally agree with you, i dont like to add the reasonable attorney fee clause to any contract just in case i lose and then have to pay my own legal fees AND the other parties fees to boot. now, i have a question about this clause before i could even begin to make a statement abuot it. what are you worried about that is gonnna be surviving closing? it wuold seem to me that you are worried about them bringing up something after you sell them the huose? some type of repair problem maybe? make sure there is a clear statement abuot the “as is” basis of the house. what else cuold you be worried about? will the buyers not allow you to simply delete the surviving part of the clause and let it go with that? by them wanting this clause included ionthe contract, they are worried about yuo going directly to the courthouse instead of to them. this clause doesnt appear to be able to hurt you if yuo simply follow the rules of the agreement. am i missing something? i have too many questions abuot the second clause to make a good suggestion.

hopefully someone else will understand its purpose better than me, i have never used a clause similiar to this before. but like i said, i dont include any attorney fees clauses in my contracts anymore.

Contract of sale negotiations - Posted by Lewis

Posted by Lewis on October 04, 2002 at 16:33:59:

I am currently in the negotiation of sale for one of my properties and have a couple of clauses that our Buyer has included that we’re not in agreement with. One deals with Default and states, “…If Buyer fails to make full settlement or is in default due to Buyer?s failure to comply with the terms, covenants and conditions of this Contract, the deposit may be retained by Seller as long as a release of deposit agreement is signed and executed by all parties, expressing that said deposit may be retained by Seller.” The other deals with Mediation of Diputes and states “…In the event Buyer and/or Seller shall initiate or commence any action in any court or before any administrative agency without first submitting the dispute or claim to mediation as herein provided, the party initiating or commencing such action agrees to pay all costs and expenses, including reasonable attorneys’ fees, incurred to enforce the obligation as provided herein to first mediate the dispute or claim by any person or entity with whom or with which the party was required to mediate. The provisions of this paragraph shall survive closing and shall not be deemed to have been extinguished by merger with the deed.” We are of the position that if the Buyer defaults, we want access to the deposit money regardless of their signing a release and with regards to mediaiton, we want to be done at closing and not have this survive our closing on the sale. Please provide feedback on the legality of these issues and anything we’re missing to benefit us, the Sellers.

Thank you