Hey BP, I was wondering if a memorandum of contract would work in CA, If so, where can I get one?
In addition to a full purchase contract or just by itself? Typically a memorandum of contract is just an abbreviated document that confirms that you and seller have an agreement to purchase/sell a property, but it doesn't contain all the details/conditions that the full contract would.
It basically just puts others on notice (assuming you record it) that you and the seller have an agreement to buy/sell the property....sort of "cloud the title" if you will (in case you're worried about the seller going around your back and selling to someone else).
As to where you can get one, you can Google them and find them online. Here's a sample: Memorandum of Contract
Thanks Michael Quarles, I read the article and it answered my question fully, I appreciate that. So what I took from it is that it's a great contract to use but not necessary all the time and only to use it if I have a hunch that the seller might want to back out. What if the seller actually does want to back out? Are my rights still protected and will I still receive my assignment fee?
Hey Thanks Kyle. Much appreciated. I found some vacant properties and I'm ready to get things going I just need to work out the kinks.
I hate saying it however nothing really protects you against a seller trying to back out. Certainly you can force a seller to sell via litigation however the amount you will spend will defeat the purpose in most cases.
I always let a seller out of the agreement as long as they allow the recording of a twelve month deed restriction.
If they don't I know that they are trying to sell to someone else and in my area a title company would request my release before granting insurance.
All the Memorandum does is cloud title enough for a title insurance company to take notice and possibly not issue title based upon your memorandum. However the buyer could take title subject to the recording. They probably wont however.
Thanks again Michael Quarles you really cleared things up. I have another question about vacant properties if you have the time. I found a couple and they both have fire damage. Do investors even bother with these types of properties?
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