Posted by Elizabeth (NJ) on January 11, 2005 at 16:34:21:
I don’t think any seller is going to sign a contract that is contingent upon you finding another buyer because the reality is that you are preventing them from selling to someone who can close a lot quicker than you. You should be looking for your buyer once you have a firm commitment, even before you have signed a contract with your seller. Advertise the property in your local paper, post it on the zillion free sites and make yourself available to show the property on several convenient dates for those interested.
The kind of contract you are describing may be deemed to be in “bad faith” and invalid and you will lose the property. The truth is that you don’t have to tell your seller that you are selling the property.
A double closing is fine - just get your buyer lined up and ready to go. And insert language in your contract with your buyer that closing must take place within 30 days or less from date of execution of the contract with your buyer. This will weed out those “tire kickers”.
Another thing: I always, without fail, ask for proof of funds from my buyer. If the buyer is an investor, this can be in the form of a ltr from his bank stating that funds in the asking price of the property are on hand in that bank; if the buyer is a consumer, proof of funds can be in the form of approved funding from a mortgage or finance company (not a prequal letter). And don’t be shy about asking for proof of funds. A serious buyer will expect to verify his ability to buy in the timeframe you have set.
P.S. Be sure your contract with your BUYER states that “This contract may not be assigned, transferred or otherwise conveyed to another individual, corporation, entity or agency.” This will prevent your buyer from selling the deal to someone else and further delay your closing.