Investor · Apex, NC · Member since 2014 · 340 posts · 188 votes
Im about to send out a contract for 4 parcels of land/residential totalling ~13 acres in Raleigh, NC. I was wondering from those more experienced in this if I should be sending out 4 separate contracts for each or 1 containing all parcel #'s? Im trying to avoid having 50+ sheets of paper for the seller to sign and myself to keep track of. Also, we agreed to a price for everything combined and 2 of the lots have homes/mobile on them. the 100+ year old house is vacant and the mobile is...well a cheap mobile that is barely livable. Any suggestions?
Investor / Landlord · Columbus, OH · Member since 2015 · 276 posts · 174 votes
10y
I've done numerous multi-parcel deals (deals with 2, 4, 5, 10, 12, and 36 come quickly to mind) and I'm in contract for another 2 at this time. I have always used one contract BUT that is not without it's problems.
Among other considerations, if you want absolutely want or need all of the parcels, one contract is probably the best option (or multiple contracts with language that requires all to close or allows none to close) because a deal killer defect in one will allow you to bail on all. If you prefer to close on as many as possible but don't necessarily need all, then one contract for each with no language linking the contracts would be smarter because you can bail on any that have serious problems you don't want to deal with.
There is a lot of experience and knowledge on this site, I expect you'll get other food for thought as well.
Investor / Landlord · Columbus, OH · Member since 2015 · 276 posts · 174 votes
10y
I've done numerous multi-parcel deals (deals with 2, 4, 5, 10, 12, and 36 come quickly to mind) and I'm in contract for another 2 at this time. I have always used one contract BUT that is not without it's problems.
Among other considerations, if you want absolutely want or need all of the parcels, one contract is probably the best option (or multiple contracts with language that requires all to close or allows none to close) because a deal killer defect in one will allow you to bail on all. If you prefer to close on as many as possible but don't necessarily need all, then one contract for each with no language linking the contracts would be smarter because you can bail on any that have serious problems you don't want to deal with.
There is a lot of experience and knowledge on this site, I expect you'll get other food for thought as well.
I've done numerous multi-parcel deals (deals with 2, 4, 5, 10, 12, and 36 come quickly to mind) and I'm in contract for another 2 at this time. I have always used one contract BUT that is not without it's problems.
Among other considerations, if you want absolutely want or need all of the parcels, one contract is probably the best option (or multiple contracts with language that requires all to close or allows none to close) because a deal killer defect in one will allow you to bail on all. If you prefer to close on as many as possible but don't necessarily need all, then one contract for each with no language linking the contracts would be smarter because you can bail on any that have serious problems you don't want to deal with.
There is a lot of experience and knowledge on this site, I expect you'll get other food for thought as well.
Good ideas here. Ill probably have my attorney draft up something similar to this. it will probably be a all or nothing deal. Thanks Dawn for the info.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
10y
No mention of lender... so if these are cash buys the format of the offer depends on your interest. @Ed W.summed it up. If you would have financing as part of the expectation (but not a contingency) then the lender may have a say on their preference (multiple tracts or all single tracts). My company has done up to 15 tracts (parcels) at a time, and one deal that involved 5 independent sellers (us as buyer), with one blanket loan... all handled via the closing attorney, who is a great asset for deals like this.