LAWYERS!!! ARGH!!! Why do they not like REI’s!! - Posted by Jim IL
Posted by Jim IL on July 28, 1999 at 13:59:43:
Hello all,
Pardon me while I vent!
I was calling ads the other day and left a message for a home we saw “For rent or For sale”.
The seller called me back yesterday, and informed me that he had the local number set up on voice mail only, and that he was actually out of state.
I was excited, but did not show it to the seller.
We discussed his home, and what he needed.
The seller insisted that before we proceed to talk further, he wanted me to go see the home.
He stated that a friend was living in it and showing it last night to another possible buyer, and could I PLEASE go look NOW!
So, I did!
The place was great, and the terms he offered were pretty good.
The seller also insisted that I call him after viewing the home, that same night, no matter how late it was. (can you say, “motivated”?)
So, we talked more, and he agreed to “go with me”.
He asked me to draw up the agreement, and fax it right to him.
After he got it, he called me back and asked if it was okay to send it back tommorrow, so that his wife could read it and sign it. She was apparently at work.
No problem, I am “flexible” and could wait 24 hours.
But, today I get the agreement back via fax, and this seller has taken it to his “brother in law the lawyer”, and they changed almost EVERY SINGLE clause in the agreement, by adding to or deleting certain items.
He even changed the numbers a bit.
I can live with the number changes, they were not that much different. (besides,we will just pass that on to our Tenant/Buyer anyway).
But, the guy basically wants me to jump thru hoops!
Examples:
In my L/O agreement, it prevents the seller from encumbering the property any further.
The seller’s lawyer says that that MUST be changed, allowing the seller to encumber the property to as much as he wants but not to exceed the option price.
(I may bend on this a little, but it does scare me)
The seller also wants to be able to “assign” the contract, and not allow me to assign it and be released from liability. OBVIOUSLY, we will not bend here. IF we assign it, then we want to be free from it.
The seller is also demanding that we carry “liability insurance”, even though the home is insured, and he was told that we require our T/B’ers to carry renters insurance.
The seller also wants a security deposit, which we may agree to, but make it payable after we find an acceptable T/B’er.
Our agreement also says that the seller must add us as an “additonal loss payee” on the home insurance, and the lawyer says that this is not possible, and that the lender will not allow this. (He is wrong!! It has been done before)
These are just a few of the “changes” that are requested, and frankly I’m an inch from walking away.
The only thing preventing me is the location of this home.
We have a HUGE demand from buyers for this area, and I know that it will fill up FAST!!
The seller also has several other people interested in the home, so he says, and I belive him, because I know the demand here.
What would you do?
I at first told my wife we should take a hard line, and not compromise much if at all. Our deal was good, and we already agreed to pay $50/month more than we first proposed, and met his asking price.
But, my wife says, bend, and get the deal, we need a shot in the arm right now!
What would you do?
Thanks,
Jim IL
P.S. We normally write up our L/O’s for 24 months with 2 renewable periods, and this time we went with the sellers idea of 24 months and 1 renewal. The lawyer changed that to reflect a $5k price rise for the second term and rent going up by $75/month also in the second term.