Posted by Max-Va on June 27, 2006 at 14:37:47:
You are close to being a unlicensed agent by doing this approach. It could cost you dearly. Just my opinion, that you could be on dangerous ground.
sales purchase contract & addendum - Posted by Carol
Posted by Carol on June 27, 2006 at 13:49:03:
Hi, I want to offer a sales purchase contract for an apt. building. The seller and I have agreed that I will be trying to help him sell the building and, of course, I will be asking a higher price. If he sells the property, I am out of the deal. If I sell the property, I make a nice profit. Would I do a standard Purchase contract and an addendum which would explain that the seller and I are both trying to sell the building? Hope this isn’t too confusing. Thank you
You might but I wouldn’t - Posted by John Merchant
Posted by John Merchant on June 27, 2006 at 18:41:38:
ANY commercial RE contract should be done by an agent or lawyer who understands and does these all the time.
Really NO such thing as a “standard purchase contract” even for a house and specially not for an apt property which is a commercial property with its own pitfalls.
While this could be illegal if you’re really playing at just taking a commission like an agent, without being so licensed…a good RE lawyer could show you how to do the dual transaction with no license necessary.
The way I like to do these find & flip deals is to have a good (preferably independent, and not one of national Title/Escrow outfits) handle this in a 3 party, 2 way simultaneous closing.
Transaction A would have YOU or your assigns being the buyer from your seller; Transaction B would have you being the Seller to your buyer.
Any escrow co. knows how to do these, but I’ve found the nationals have internal requirements about notifying ALL parties about what all other parties are doing…and here, I think you’ve got some valid reasons to keep deals A & B in separate, walled off transactions so A Seller doesn’t know anything about B buyer.