Posted by Diesldan on September 18, 2005 at 15:14:10:
Lloyd-
Thanks for the quick response.
That is exactly what I needed to hear - and the wording you suggested is superb.
I’m still open to more input from any other members who care to comment.
Dan
Why Do I Need a Standard Purchase Agreement? - Posted by dieseldan
Posted by dieseldan on September 18, 2005 at 08:31:50:
I have a pending subject-to deal that I plan to do a table top closing on in a couple days. The owners of a duplex are behind in their payments, but not yet in foreclosure. We have all agreed verbally on the terms for the deal.
My plan is to have the owners create and deed the property into their land trust and then assign their beneficial interests in the trust to me. I would also become its trustee upon assignment.
I plan to spell out the terms of our verbal agreement within the trust agreement document itself - without using a separate purchase agreement document. My responsibilities would include curing all arrearages on the owners’ mortgages.
Since I am not buying the property itself - but buying the sellers’ beneficial interests of the trust subject to their existing deeds of trust, it seems that a purchase offer / Agreement form would be neither appropriate or necessary.
My question: Why would I need to use a separate purchase agreement document for this transaction? Am I missing something? I know the guru’s teach writing up a purchase offer. But why? Would I use a purchase agreement to purchase their beneficial interests once the property is held in trust?
Please post any replies asap, as they sellers are leaving the state on Sept. 19, 2005, immediately after our closing. I would need to execute all needed paperwork before then.
Posts after that date are also encouraged for the info benefit of other members.
everything must be in writing - Posted by Lloyd
Posted by Lloyd on September 18, 2005 at 14:06:01:
Listen to the gurus, yes you need a Standard Purchase and Sales Agreement. The contract should include something like this:
It is understood that the Property will be conveyed by ?Assignment of beneficial interest in Trust? and that the buyer is purchasing a beneficial interest in the xxxxxxx Trust No. Xxx.
The contract spells out clearly the wishes of both seller and buyer. This gives you written documentation of exactly what was agreed on. The statute of frauds states that everything (for real estate) must be in writing.
Don?t do the deal without it.
Re: everything must be in writing - Posted by martin
Posted by martin on September 18, 2005 at 16:15:20:
Ya its a good idea to do a contract… Because they could always say they didnt understand what a trust was. BUt with a contract they cant use the i didnt understand excuse.