Posted by jim on March 07, 2003 at 09:52:55:
I sent you a PM to clarify something.
THanks again–Jim
Recording the contract to protect myself - Posted by jim
Posted by jim on March 06, 2003 at 09:13:17:
Working with a couple going into foreclosure. I do have a contract on their house but haven’t recorded it. I’m going to the courthouse to record it because I know other investors are knocking on their door.
Here’s my question: If my arrangements on the house fall through (basically meaning the bank isn’t willing to short to the point that I would feel comfortable buying the house)is there any way to rescind the recorded contract? I don’t want to cloud their title if they can find another buyer (in the case that I back out).
Thanks in advance for feedback–Jim
Re: Recording the Affidavit to protect myself - Posted by Mike Stott
Posted by Mike Stott on March 06, 2003 at 16:17:48:
Jim:
As opposed to recording the contract, instead record an Affidavit of Memorandum. This documents is nothing more than a written reference to the executed sales contract that you have in hand. It has the same effect as recording the sales contract, but without having to disclose all of the details of your deal.
The content of an Affidavit is quite simple. The first line goes something like this, ?Before me, the undersigned authority, on this day personally appeared (your name) , Affiant, who being first duly sworn, deposes and says that:? It is important to point out that you do not need to have the owner sign the Affidavit. Only your signature is needed near the bottom and only your signature is notarized.
The next line states what you are claiming, such as, ?An Agreement that relates to the real property described in the attached Exhibit ?A? was entered into by the Affiant. Said agreement relates to an obligation entered into by (owner?s exact name(s)), as Owner of said real property.? Exhibit “A” at the bottom of the page is merely the legal description of the property.
The final line of the content of the Affidavit contains instructions on how to contact you to verify your claim as to having an agreement. This line is worded as follows, ?The details of the Agreement relating to said real property may be obtained by contacting (your/affiant name), whose mailing address is (your/affiant mailing address), and whose telephone number is (phone number).? Just because you say the ?details? are available by contacting you doesn?t mean you have to share the details with everyone. The intent of putting contact information is to require other potential buyers to provide notice to you of their intent. It also would put you on notice if a quiet title action were to be initiated.
To un-cloud the title, a simple quit claim deed from you, the Affiant, will work.
Mike Stott