Posted by Tom-FL on June 03, 2005 at 16:58:49:
In the case of the Florida form, you have to put an X in the right spot.
X. ASSIGNABILITY: (CHECK ONLY ONE): Buyer __ may assign and thereby be released from any further liability under this Contract; __ may assign but not be released from liability under this Contract; or __ may not assign this Contract.
The others I have no idea.
Generally, a contract is assignable unless specifically prohibited in writing in the contract.
One way to make a contract assignable is to put the phrase “and/or assigns” immediately after your name. Even if it says in the boilerplate that the contract is NOT assignable, typewritten overrides boilerplate, and handwritten overrides typewritten.
Be that as it may, I’d still cross out any references about non-assignability. With some of the decisions coming out of courtrooms nowadays, it would be best to crush the issue completely.
And speaking of crossouts, you cross out the phrase and affix your handwritten initials and have the other party initial as well.
If there is a blank space marked “Special Clauses” or something similar, you handwrite there, “This contract is assignable.” Again, handwritten overrides boilerplate or typewritten.
Well, I’m about plum out of ideas here. None of the foregoing should be construed as legal advice. You can only get that from a qualified practitioner familiar with your area. So, run it by your eagles and good luck.
Wholesale contracts - Posted by Dram Brothers
Posted by Dram Brothers on May 30, 2005 at 01:36:31:
We have been eager to start flipping homes, now for over a year. We’ve done all the research, ect. The only thing holding us back right now is our contracts. We took a contract directly from the back of a book about ‘nothing down’. I want to know if we’re allowed to use these contracts, should we use these contract and what are any risks we may face by using them. Also, there are a few things we dont understand completely within the contract like if the deal would be all cash or terms. Should we consult a lawyer?
Any Responses would be greatly apreciated.
I am very eager and motivated to dive into the market.
Re: Wholesale contracts - Posted by John
Posted by John on May 30, 2005 at 07:01:58:
I am not a lawyer or even think like one, but was sued once.
The best advise I can give is that when ever you use a form from a guru, always get a attorney to review. One form/contract may not be valid in all states.
Bill Bronchick has state specfic forms with his course, I have had them reviewed by an attorney in VA and was told they are great, no changes necessary
Re: Wholesale contracts - Posted by Dram brothers
Posted by Dram brothers on May 30, 2005 at 22:23:20:
Money, is really the issue for me. I am currently living paycheck to paycheck and going to a lawyer is almost out of the question. I wonder if there is a way for me to have these contracts reviewed, or get legal contracts for use in my state at a low price? Any suggestions would be appreciated.
Re: Wholesale contracts - Posted by Tom-FL
Posted by Tom-FL on June 02, 2005 at 21:38:15:
Many or most states have a “standard” contract that you should be able to pick up cheap or free.
These are good because they have all the "T"s crossed and "I"s dotted already. Any state required language and disclosures are already there. They also are very even handed. No huge bias is accorded to buyer or seller as in those guru course contracts.
In my state (Florida), it’s called the FARBAR (Florida Association of Realtors/Florida BAR Association).
California has the C.A.R. (California Association of Realtors).
And Texas has the TREC (Texas Real Estate Commission).
Now, how do you get them? The way I first started getting them was that they just started showing up. No kidding. Around here, every time you attend a seminar or go to a REI Club, they are just floating around. Granted, the first one I came across were 20th generation photocopies. Then a wholesaler started sending a .pdf of the FARBAR with every email ad for a property he was flipping. So now I just print them out. In a worst case scenario, I’ve gone to the Realtor® store and bought a few at around 75¢ a copy. I was a little surprised they didn’t ask for proof of me being a Realtor®. Maybe the contracts aren’t considered proprietary or maybe the amount was so small. I don’t know, but it’s worth a try.
You could also try to get a copy from a friendly Realtor®. Not one of the huge franchises like REMax or C21. Those are definitely proprietary.
Call some title agencies. They should have them.
Go to your local REI Club meeting. Ask around at the break.
Re: Wholesale contracts - Posted by Brad
Posted by Brad on June 01, 2005 at 08:38:42:
Try to cut back on bills. A lawsuit due to faulty contracts would be worse than paying your credit card late. That’s just my opinion but lawsuits can be REALLY nasty and the damage to your reputation would probably cost more in the long run
Re: Wholesale contracts - Posted by John
Posted by John on June 03, 2005 at 01:51:33:
Do you have to do anything special to these forms to make them assignable.