How to write up a contract?

Question

I was wondering if any of you guys could help me out. I'm looking for some tips on how to type up a contract for a double closing, and possibly assigning a contract.

Do you guys know any good websites that have these contracts, or if you guys have any. Then of course I would modify it to fit whatever the sitatuion was.

Any help is appreciated.  :D

Rich Urban · Answer

Yes all contracts are assignable unless otherwise stated.  The reason why I put the "and/or assigns" on my contracts is to ensure that all parties are on board.

I inform my seller that I may not be the one closing on the property & I use it as an extra precaution.  Also, all title companies vary but some may be a bit more suspicious of the assignment if it doesn't Spell it out in print.

Bryan- You are absolutely correct in your posting.

Rich Urban · Answer

One more thing that I had forgotten to mention:

There have been many past law cases where the seller refused to accept an assignment because he had a contract with the original "Buyer" and not the end assignee.

Of course, this is "tortuous interference" with your contract between you and your end buyer.  However, he can turn around and sue YOU for the same.  He has a contract with YOU.  Believe me...I speak from personal experience..the ONLY one's that win in these kinds of battles are the attorney's anyway.

The worst part for the investor...aside from plunking down  thousands for an attorney, in every case that I've researched, the original seller won!  The judge ruling that you cannot force someone into a contract.

For that among the other reasons above, I put it right on the contract and make it publicly known that this contract is assignable.

Bryan Winter · Answer

If im not mistaken...every contract is assignable unless it specifically states that it is not assignable. Anyone know any different?

Rich Urban · Answer

That Assignment Contract is fine.  It's pretty simple.  For a double closing, you'll just use a standard contract & explain to the title company that a double closing is to take place.  Find an investor friendly title company, and if they'll do a double closing...make sure that they've done them before!!

Your best bet is to do a simple assignment UNLESS your profit is over $20,000.  I've found that people start to get a little testy when they know that you're making more than that on a quick wholesale.  That's my personal experience and you may have success otherwise.  I just made that my own personal rule..:)

I've tried several different types of Standard Buying Contracts & found that Florida's  standard "FARBAR" that realtors use, works the best for me (I'm in Florida).  It seems to calm the seller when I show them that I'm using the local standard and not something that I created on my computer.  I've found that those "Real Estate Investor Friendly" contracts are overly in the investors favor.  The problem is that anyone with a brain could read that and think that you're trying to scam them.  After all, who wants to sign something that is absolutely geared to protect me & screw them over..:)   I then, attach an addendum explaining the details of the transaction & any "weasel clauses"  as well as the  inspection period that I may need.  I then have the seller initial each line and sign the bottom.  While they're signing paperwork, make sure that they sign your "Authorization To Release Information Form".  This makes it easier when getting payoff figures on mtg's & liens.

As a side note, my addendum has numerous weasel clauses that I don't really need.  I cross them off in front of the seller to look like I'm giving up more concessions.

I'm pretty sure that the BiggerPockets "Forms & Contracts" link on the left has a few standard contracts available to you. If they don't, or you want a copy of what I use, just PM me and I'll email you one.

Very important - When you are writing up the contract between you and the original seller, be sure to put the words "And / Or Assigns" directly after your name.  This is saying that "YOU" and or whoever you assign the contract will have the right to fulfill the agreement.

Jason F · Answer

Double closings are just that. You are closing on the property with the seller (using a standard PA) and closing again, once you own it, with the buyer (using a standard PA). I don't think there are any specific double closing documents.

Jason Cummins · Answer

I believe that there are a couple here on biggerpockets available to DL and get some ideas from.  Do a search for them.

Once you have one and you update it the way you like it, a good way to check to see if it is good or not is to send a blank one to the title company you choose to work with.  If they recognize it and say its ok, generally your good to go, though nothing is better than your RE lawyer looking at it.

Michael Juve · Answer

Well that is one contract down.

Any suggestions for writing up a standard buying contract?

Jason Cummins · Answer

That assignment contract should work.

As far as a specific contract for double closings, you dont need one.  WHat you do is write two different contracts, one between you and the seller for x amount, and one between you and the end buyer for higher amount.

Just make sure you have a title company that is willing to work with you on double closing.

I highly recommend just assigning the property.

Michael Juve · Answer

I had forgotten that I had an assignment contract saved onto my computer. I will copy and paste it in this message. What I am struggling with is to write up the contract to initiate with the original owner of the property. Are double closings a specefic type of contract or are they just two seperate contracts and two seperate transactions?

ASSIGNMENT OF REAL ESTATE PURCHASE AND SALE AGREEMENT
 
THIS ASSIGNMENT is made this _____ day of __________, 20___ by __________ 
("Assignor") to __________ ("Assignee").

W I T N E S S E T H :

WHEREAS, Assignor has entered into a certain Real Estate Purchase and 
Sale Agreement with __________ as "Seller" and Assignor as "Buyer" which 
Agreement was executed on __________, by said Assignor and on __________, 
by said Seller for the purchase and sale of certain real property being, 
lying and situate in _____County, __________, and more particularly 
described in said Agreement, copy of said Agreement being attached hereto as Exhibit "A"; and,

WHEREAS, Assignor desires to assign, transfer, sell and convey to 
Assignee all of Assignor's right, title and interest in, to and under 
said Real Estate Purchase and Sale Agreement; and,

WHEREAS, Assignee is desirous of receiving all of Assignor's right, title 
andinterest in, to and under said Real Estate Purchase and Sale 
Agreement;

NOW, THEREFORE, for and in consideration of the sum of _________ Dollars 
($___.00) and other good and valuable considerations, the receipt and 
sufficiency ofwhich are hereby acknowledged, Assignor has assigned, 
transferred, sold and conveyed and by these presents does hereby assign, 
transfer, sell and convey unto Assignee all of Assignor's right, title 
and interest in, to and under said Real Estate Purchase and Sale 
Agreement. Assignee hereby assumes all of Assignor's duties and 
obligations under said Real Estate Purchase and Sale Agreement. This 
Assignment shall be binding upon Assignor and shall inure to the benefit 
of Assignee and its successors, heirs and assigns.

IN WITNESS WHEREOF this Assignment has been signed, sealed and delivered 
by Assignor and Assignee as of the day and year first above written.

Witnesses:
 
"Assignor" __________ 
 
"Assignee" __________

This seems like a solid contract for assigning. But I figured I would bring it to the people that have done this sort of thing.