I cant seem to find an EXAMPLE contract to look at
I want to put houses under 30+ day contracts then sell them to investors, It is illegal here in Alberta but there is a loop hole I forget what you put on the contract though ....You name and assignee?.. So after you find someone do you just reprint the contract with there name on it and yours off it?
Can someone please help I cant seem to find one anywhere and I want to start faxing off offers..
Like I dont understand, What is the first fax I send? Is it the contract or is the contract/offer same thing:
Buyer :Andrew B. and or assignee
House to be in contract:
15 XXX Street
List Price :$250,000
Amount being offered $195,000
Deposit : $5000
Terms: Subject buyers financing approval
Term length: 30 days
This is a TOTAL guess on my part. I have never ever seen one...Can anyone correct me? I want to fax a bunch of this weekend!
well, your lawyer would tell you, DO NOT FAX OR MAIL ANYTHING THAT MAY BE CONSTRUED AS AN OFFER/CONTRACT.
you're not ready for that yet. your excitement and energy are awesome.
sit down with a real estate attorney and tell him/her what you want to do. join your local rei club and get a referral to a good attorney if you can.
you can send out letters of intent, but even then if you don't know exactly what you want to do, you really should consult an attorney FIRST.
first consultation is free, so why not go to several consults?
KEEP THE DREAM ALIVE! MAKE IT A REALITY!
What you are doing is not considered bird dogging, it is considered wholesaling. Which is something different, as a bird dog you would basically go out find the good deals, have a wholesaler or investor sign a no compete contract for the property, and then them give them the pertinant information concerning the property. After they sell the property you would be paid a bird dog fee usually between $500 to $1000 sometimes more. But when you put a house under contract that makes you the wholesaler.
just to clarify:
When you buy property in Alberta there's two types of sales that can occur. A) a private sale or B) a sale that is under contract with a realtor. In the case of A, you can write up an agreement together. It simply has to list all the details of the house. You can find these FSBO house purchase agreements from "Self Counsel Press". Or by asking a realtor to just give you one of their contracts and use that. Just cross out the parts that involve the realtor.
Or if it's listed with a realtor then your purchase involves at least 1 realtor. The sellers agent. And you can choose to include your own realtor as well if you'd like. The realtors will draft up the sale agreement with you on their standardized purchase contract.
In terms of all this birddoggy stuff I think it works like this:
Birddoggying is like getting a finders fee. So you find a an investor(s) and agree to something, you should put it in writing even if it's not legally binding, using some form of birddog contract such as the one shown below that someone else had posted. That way your investor who probably doesn't know the law that well will think they are legally bound to pay you the finders fee. So you find a property that fits the investors needs. Bring it to them and if they buy it then according to the agreement you should be paid a small commission. Keep in mind that by law you have to have a realtors license to be paid that commission. Otherwise it's known as "birddogging". Which I think is illegal in some places, but still widely done anyway. What I would do though is before or while presenting the deal to your investor, tell them that if they buy this one that you will immediately go out and try to find them some more good properties. Don't mention fees but make it sound as though you'll continue to work hard for them. That way they'll most likely feel obligated to pay, at least if they want to have you on their side working to find them deals. This requires no capital or credit to do.
And the other and better way of birddogging in "wholesaling". That is where you fill out a purchase contract with the seller or sellers agent. That way the property goes "pending" until you remove conditions. During that period you can assign the paper contract to someone else. So you sell the contract to another investor. They buy it for a fee plus the payout of your deposit. This is legal and enforcable. And much easier to actually get paid because the investor is actually buying something from you. It's not just considered hearsay about some deal. You already have the deal tied up and now will sell the them. You have to put "and or Nominee" after your name on the contract under the "buyer" so that the seller knows that you make mention in the contract that you have the option to assign it to someone else. This requires some capital to tie up the property, but you don't need any credit.
Bird Dog Consulting Agreement
This Agreement is made effective as of ____________, 2007, by and between ____________________
______________________________________________ (“hereinafter “Buyer” or “Seller” [circle one]),
of _______________________________________, and ____________________________________, of
In this Agreement, the parties who are contracting to receive services shall be referred to as the "Seller" or the "Buyer" [circle one], and the party who will be providing the services shall be referred to as the "Consultant". The Seller and/or the Buyer desire to have services provided by the Consultant. Therefore, the parties agree as follows:
1. DESCRIPTION OF SERVICES. Beginning on ____________________, 2007, the Consultant will provide the following services (collectively, the "Services"): a real estate, locator, referral and contact service.
2. PERFORMANCE OF SERVICES. The manner in which the Services are to be performed and the specific hours to be worked by the Consultant shall be determined by the Consultant. The Seller and/or the Buyer will rely on The Consultant to work as many hours as may be reasonably necessary to fulfill the Consultant's obligations under this Agreement.
3. PAYMENT. The Seller, through the Buyer, will pay a locator, referral and/or contact fee to the Consultant for the Services equivalent to $______________ (_______%) of the total proceeds derived from the sale and/or purchase of the certain property located, referred and/or contacted as requested by Seller and/or Buyer, or a flat fee in the amount of $_______________ for services as described in Paragraph 1 above. All fees due to Consultant shall be payable in a lump sum upon completion of the Services unless otherwise further negotiated between the Seller and/or the Buyer and the Consultant. Upon termination of this Agreement, payments under this paragraph shall cease; provided, however, that the Consultant shall be entitled to payments for periods or partial periods that occurred prior to the date of termination and for which the Consultant has not yet been paid.
4. TERM/TERMINATION. This Agreement shall terminate automatically upon completion by the Consultant of the Services required by this Agreement.
5. RELATIONSHIP OF PARTIES. It is understood by the parties that the Consultant is an
Independent contractor with respect to each, and not an employee of either. Neither the Seller’s and/or Buyer's business shall provide fringe benefits, including health insurance benefits, paid vacation, or any other employee benefit, for the benefit of the Consultant under this Agreement.
6. EMPLOYEES. The Consultant's employees, if any, who perform services for the Seller and/or Buyer under this Agreement shall also be bound by the provisions of this Agreement. At the request of either the Seller or the Buyer, the Consultant shall provide adequate evidence that such persons are theConsultant's employees.
7. CONFIDENTIALITY. The Business recognizes that The Consultant has and will have the following information:
- Future plans
- Business affairs
and other proprietary information (collectively, "Information") which are valuable, special and unique assets of the Seller and/or the Buyer and need to be protected from improper disclosure. In consideration for the disclosure of the Information, the Consultant agrees that the Consultant will not at any time or in any manner, either directly or indirectly, use any Information for the Consultant's own benefit, or divulge, disclose, or communicate in any manner any Information to any third party without the prior written consent of the Seller or the Buyer. The Consultant will protect the Information and treat it as strictly confidential. A violation of this paragraph shall be a material violation of this Agreement.
8. UNAUTHORIZED DISCLOSURE OF INFORMATION. If it appears that The Consultant has disclosed (or has threatened to disclose) Information in violation of this Agreement, The Seller and/or the Buyer shall be entitled to an injunction to restrain the Consultant from disclosing, in whole or in part, such Information, or from providing any services to any party to whom such Information has been disclosed or may be disclosed, notwithstanding that this Agreement is not exclusive to the Seller and or the Buyer, and the Consultant shall be allowed to use such confidential information under identical agreement with any other third party who may be interested in purchasing the Seller's and/or selling to the Buyer up to and until the time the Seller and/or the Buyer have entered into their agreement(s) to consummate a financial transaction. The Seller and/or the Buyer shall not be prohibited by this provision
from pursuing other remedies, including a claim for losses and damages.
9. CONFIDENTIALITY AFTER TERMINATION. The confidentiality provisions of this Agreement shall remain in full force and effect after the termination of this Agreement.
10. NOTICES. All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person or deposited in the United States mail, postage prepaid, addressed as follows:
IF for The Seller and/or The Buyer:
Print: _______________________________________ Date: ___________________________
IF for The Consultant:
Print: _______________________________________ Date:___________________________
Such address may be changed from time to time by either party by providing written notice to the other in the manner set forth above.
11. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties.
12. AMENDMENT. This Agreement may be modified or amended if the amendment is made in writing and is signed by all parties.
13. SEVERABILITY. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
14. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.
15. APPLICABLE LAW. This Agreement shall be governed by the laws of the State of [Florida].
Party receiving services:
___________________________ Buyer Seller]
Phone: ___________________________ (Cellular)
Party providing services:
Phone: ___________________________ (Cellular)
Thanks for posting that sample contract. We've gone ahead and added to our real estate forms directory:
This should come in handy for many people. :mrgreen:
thx for posting that its like you read my mind :shock: