Posted by Squidly TX on July 13, 2005 at 17:20:01:
a) If you suspect a seller may go awol, or renig on your purchase contract, you should file your contract along with an affidavit of memorandum at the county courthouse. This will prevent clear title if your seller tries to sell to someone else, and protect your option.
b) If you are concerned about not getting cut out, make sure you talk to the Title Company that you will file the contract. If they don?t have problems with the simultaneous close, they should be ok holding the contract while you do the work. If your Title company gives you hassle, fire them and find one who will play ball your way. If you?ve been in the biz long enough, you know a good Title officer is worth his weight in gold. As far as tax implications, the Title company will 1099 you at the end of the year. The best way I know of on that is to incorporate and start a business so you can write off expenses. When you start making good money, talk to your CPA about things you can do through the company such as starting matching 401(k)'s, putting your vehicles under the company for expenses, etc.
Good luck Bud.