Posted by Cyndi Ortiz on June 06, 2007 at 09:51:31:
Okay, we’ll do. Thank you for the information.
subject to contracts in Texas - Posted by Cyndi Ortiz
Posted by Cyndi Ortiz on June 05, 2007 at 17:57:47:
Hi,
I recently found a vacant distressed property in Lubbock, Texas that was listed with a realtor. I put in an offer and part of my offer included a “subject to existing financing” contract. The realtor refused to put my offer in. I was also told it may be illegal to do “subject to” contracts in Texas, and then I was told it just isn’t done. Is this information correct or was the listing realor just giving me excuses as to her reasons for not putting my offer in? Is it illegal? Shouldn’t that realtor, by law, have at least put the offer in to the seller?
Thanks
Cyndi
Agent must notify Seller - Posted by John Merchant
Posted by John Merchant on June 07, 2007 at 10:21:11:
Universal law is the REA MUST notify Seller of ANY & ALL written offers, so I’m sure TX is no different here.
First I’d contact the RE Broker who OWNS the listing, not the agent, and tell him/her you demand the Seller be notified at once…and if the REB fails to do so, you’ll file a complaint to the TX RE Licensing Agency as it is definitely a violation of that broker;'s and agent’s legal duties.
Then go find Wm. Bronchik’s great article “No Due On Sale Jail” explaining that buying Sub To is not, in any way, a crime nor is that practice objectionable or actionable as a civil law suit.
As long as the buyer sub-to clearly explains in writing what he’s doing, not assuming the bank debt, etc. and gets full signatures from Seller acknowledging what he’s doing and why, the deal should be legally OK.
While it is true that virtually all States’ Atty Gen’s offices are looking closely into the practice of buying “sub to” as it frequently looks to them like the Seller is being scammed, if you dot & cross your i’s and t’s, with a very carefully written document you should be OK.
If it’s a substantially profitable deal for you I’d sure recommend you have a lawyer do the Sales Agreement for you so it will contain the language to protect you if and when the Seller cries fraud, etc.
Re: subject to contracts in Texas - Posted by Natalie-VA
Posted by Natalie-VA on June 07, 2007 at 05:55:06:
You should report the agent to the state licensing authority in TX along with the local Realtor’s association.
–Natalie
Re: subject to contracts in Texas - Posted by Rich-CA
Posted by Rich-CA on June 05, 2007 at 23:22:05:
Any possibility of locating the owner and bypassing the agent?
Re: Agent must notify Seller - Posted by Cyndi Ortiz
Posted by Cyndi Ortiz on June 07, 2007 at 15:46:50:
Here is an update on this situation. All advice was extremely helpful. I did contact the realtor and requested again that my offer be put before the seller and stated that while I’d rather not have to do this, if it was not submitted to the seller, I would contact the Texas real estate authority. My offer was then submitted immediately. It was rejected, however, I’m not sure how my offer was submitted as the seller stated one of many of his stipulations was that the property would be purchased “As Is”. My offer included “As Is” so I’m not sure why he said that unless my offer was not submitted as I submitted it OR the seller did not see that on my offer. Nevertheless, this one did not pan out. There were also some questions regarding plumbing problems on this property that I could never get a straight out answer on. Perhaps I was saved a big unforseen headache by this. No doubt this particular realtor skipped some important parts of this real estate transaction. This realtor may be awesome but certainly in my interactions there were some important things that just did not go right, such as the requirement of me having to repeatedly ask for my offer to be submitted and no answer on the possible plumbing disclosures. Thanks to everyone for your help, information and input!!! It has proven to be extremely helpful!!!
Re: subject to contracts in Texas - Posted by Cyndi Ortiz
Posted by Cyndi Ortiz on June 07, 2007 at 10:01:00:
Thanks, Natalie! We were thinking the same thing. My husband and I decided we probably should consult with an attorney and maybe resumbit our offer through the attorney.
Re: subject to contracts in Texas - Posted by Cyndi Ortiz
Posted by Cyndi Ortiz on June 14, 2007 at 11:15:24:
Rich,
It seems that Lubbock is limited on attorney’s who are familiar with “subject to” contracts. Since you do business in San Antonio, do you have an attorney that is familiar with the various types of deals real estate investors do that you’d recommend here in Texas?
Cyndi
Re: subject to contracts in Texas - Posted by Cyndi Ortiz
Posted by Cyndi Ortiz on June 06, 2007 at 09:05:36:
No, they’ve left Texas. Do all agents do this or is this one just being difficult?
Re: subject to contracts in Texas - Posted by Rich-CA
Posted by Rich-CA on June 20, 2007 at 09:07:41:
I don’t do subject to deals, so my attorney contacts are limited to LLC formation and Landlord/Tenant. Sorry.
Re: subject to contracts in Texas - Posted by Rich-CA
Posted by Rich-CA on June 06, 2007 at 09:16:33:
The only agents I have found in TX (I invest in San Antonio) that do this are ones who just don’t want to do the work.
People can move out of state and still be contacted. Mail a letter to the property and pay for “address service”, which will get you they forwarding information. Then write to the owner with your offer.
Re: subject to contracts in Texas - Posted by Cyndi Ortiz
Posted by Cyndi Ortiz on August 01, 2007 at 15:13:05:
Hi Rich,
I did find a real estate attorney in San Antonio, Texas who is familiar with “Subject To existing financing” contracts and Wraps. Both are perfectly legal in Texas. He’s at www.toroklaw.com. He also does closings as well.
Re: Write to the owners, do not wait… - Posted by Katheryn
Posted by Katheryn on June 15, 2007 at 13:02:40:
Yes, you should contact the owners of the property especially if you are getting the runaround with a RE agent and his broker. I always draft up a letter with my intentions within the first few lines of the letter! This is to grab their attention to read on. Then I let them know that I have contacted their RE agent and the response I have received. In these slow times, the agents are still playing games so reporting them is fine, but while your waiting for them to get theirs, just continue as if they weren’t there and you will get a response almost everytime from the owners. Most will be suprised that their agents are not submitting offers to them & I am to assume, dump them. These offers I submit are usually lower than what they want but not insulting with a little creative juice added. I get many subject 2’s on my own but only a few have come from MLS when the owners asked to be released from the contract with the realtor when the house has not sold in months. So now I am happy to find out not to seek out “the days on market over 120 days” for my sub 2’s & lower offers, but to jump in on any house that looks promising. Thanks guys