Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
For Sale by owner, Sales Agreements.
I’m curious to learn what clauses or protections others builds into their sales agreements to ensure (or allow for legal action) if a private seller sells their property to someone else / backs out of your deal once already under contract.
Fortunately this has never happened to me and the last 6 properties I bought were from private sellers without a real estate agent or attorney, however It could and likely will happen at some point... I’m in PA and private sales are permitted, I do however have a title insurance company facilitate the closing for us.
Thanks
I typically do specific performance + attorney's fees. If you really want, I suppose you could record a memorandum of the sales agreement in the recorder of deeds so it gets flagged during title searches.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
I typically do specific performance + attorney's fees. If you really want, I suppose you could record a memorandum of the sales agreement in the recorder of deeds so it gets flagged during title searches.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
8y
@Chris K. Thank you Chris. Usually I’m buying from grown children who are dividing their parents estate. So I usually feel comfortable, however as I scale I know I’ll need to build in some safeguards.
Due to how the estate administration works, you do have extra protection there. That's especially true if you have multiple heirs and the executor/administrator is not an heir.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
It looks like the same area as you! I run a construction company more than working as a lawyer nowadays.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
8y
@Chris K. Do you specialize in Real Esatate law? I’ve done everything this far on my own, but I’m getting to the point where I’d like to sit with an attorney to get a second set of eyes on my LLC and ensure everything is structured properly.
I do but my schedule is a bit hectic. Shoot me a PM with the details and I'll be happy to see if I can help. If not, I'll be happy to recommend you to good attorneys in the area.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.