Posted by Michael on July 24, 2001 at 01:54:00:
When you have a signed contract, you are to perform as the contract states you must. If you have a contiginceny clause upon approval of inspection or approval of partner, that might buy you a little time to market it and still get out before your stuck with the property.
Understand this, No risk equals No reward!
Michael, KY.
Input NEEDED!!! - Posted by Ryan
Posted by Ryan on July 24, 2001 at 24:06:32:
O.K. I have just signed up my first deal, which I am very nervous about, but I still have to get the wife to sign off and other things before it is complete. Here are the details! The FMV of the home is 250k. The payments on the place are 1950.00 and it is $4000.00 behind right now. The homeowner is going to borrow 6k to make up the last two months and the other 2k is to pay August. I have until the first of September to find a buyer. That’s all the time I could work into the deal. My worries are this! If I don’t find a buyer before September, there is no way that I can pay $1950.00 a month. What recorse can there be against me?? Can I just walk away from the deal if I don’t find a buyer?? My contract specifically states this. If the buyer fails to perform under this contract within the time specified, the deposit(s) paid by the Buyer may be retained by the Seller as liquidated dammages, consideration for the execution of this contract and full settlement of any claims, whereupon all parties shall be releived of all obligations under this contract. I have put NO Earnest money down, so what other recorse could be brought against me??? Any advice would be appreciated!! Ryan
Re: Input NEEDED!!! - Posted by Susan Timson
Posted by Susan Timson on July 24, 2001 at 12:46:02:
Are you through the attorney review period? I would have one look at the contract and provide you with an “out” if you can’t get it sold. Like the other response said, put in a clause to give yourself 2-3 weeks to see if you can flip it or sell it. And make sure it is assignable if that’s what you want to do. Good luck, Sue
Re: Input NEEDED!!! - Posted by Carey_PA
Posted by Carey_PA on July 24, 2001 at 08:40:53:
Ryan,
I would think that IF you have the clause in the contract regarding liquidated damages that that would be all the seller could get out of you if you were not able to perform. If you put no earnest money down, then I guess their liquidated damages would be $0.
I would definitely TRY TRY TRY and TRY again to sell the place, do your best NOT to back out of the deal, because you will get yourself a bad name.
I mean if it comes down to the wire, you may even want to think about assigning your l/o agreement to an end tenant/buyer.
Keep in mind though, I’m not a contract attorney or anything like that, so I would wait for Bill Bronchick or SueC or someone to post a response to your question.
Good luck,
CAREY