Posted by lukeNC on September 10, 2005 at 10:41:38:
Blank grantee field in the deed is not illegal to notarize in NC. Doesnt count as a transfer either, at least in NC, I’ve checked those out long ago.
Basically I need to find an agent to list these properties, or maybe just go with the flat fee listing service.
listing a property that is only under contract - Posted by lukeNC
Posted by lukeNC on September 10, 2005 at 01:30:35:
I wanted to run this idea by the experts who deal in assignments and flips.
I get alot of marginal deals that most investor types dont want to buy, but I know that the retail market would scoop them up in a second.
Here’s a hypothetical scenario :
I get a vacant property from a motivated out of area seller.
They sign an “empty deed” – grantee field is blank, but their signature is notarized, and pofA giving me permission to list and sell the property. they also sign an assignable sales contract with me. I pay them say $100 for this.
I negotiate a short sale. The house is worth $200k, I negotiate a deal to get them to accept $140k, house needs repairs and all. They give me 60 days to close.
Could I then list this house with an agent for say $190k to sell retail? OR maybe a flat-fee listing service?
Once a buyer comes, I then explain that I have to be paid outside of closing, either now or with a note. This is the part that is tricky. I can see agents balking at this.
Is this doable?
Re: listing a property that is only under contract - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on September 10, 2005 at 08:09:32:
You can list a property that you own or have the right to buy. If you do not own most agents will object and often rightfully so.
From a brokers point of view the listing is only as good as their ability to collect a commission on it. That is what they do.
Now you have a deed that has a blank space for the owners name. In my state and I would bet yours too, it is illegal for a notary to notarize any document that has such a blank space on it. It is a felony in Ohio. This seriously detracts from the brokers ability to collect his fees.
The blank space on the deed also will not show you as owner, thus eliminating the state’s ability to collect taxes on one transfer They will object to this if it is found out. So this is an aera where care is needed.
Creating a note for your equity and having the note paid off at closing is an excellent way to get paid. Be sure that it is properly written. As you present your senerio it could work well, but if anyone becomes disenchanted along the way there some flaws that may cause the deal to collapse.