Wholesaler · Houston, TX · Member since 2017 · 264 posts · 212 votes
4y
Whats going on Mike.
Think of this as just like any other real estate transaction. You will need a purchase and sale agreement with the terms agreed upon - most sellers are okay with giving a due diligence period so I just disclose how long that will be.
I also always have a clause that states that the buyer reserves the right to assign the agreement.
Rental Property Investor · Pittsburgh, PA · Member since 2019 · 530 posts · 511 votes
4y
This is not legal advice. These are pertinent clauses from my standard contract reviewed by lawyers in my state. Please consult a real estate attorney in your state - it will be worth the investment. (Sorry it didn’t copy perfectly)
Note this is all part of my “as-is” contract- there are numerous outs I can use if needed even though I have only used them once or twice. I think I have only had a seller question things once or twice. As part of the contract for the last yeah I have a plain English summary letter that explains every paragraph in 1 sentence. This has helped greatly reduce actually questioning of the contract verbiage.
6) PROPERTYINSPECTIONCONTINGENCY:RegardingtheHomeInspectionLaw(68Pa.C.S.A.§7501,etseq.) property inspection isa non-invasive,visualexamination ofsome combination ofthe mechanical,electrical or plumbing systems or the structural and essential components of a residential dwelling designed to identifymaterialdefectsinthosesystemsandcomponents,and performedforafeeinconnectionwithor preparation for a proposed or possible residential real estate transfer.The term also includes any consultation regarding the property that isrepresented to be an inspection or that isdescribed by any confusinglysimilarterm.Buyerreservestherighttoconductinspectionsand professionalevaluationswithin 30 daysofthesigned Agreementforany ofthefollowing:general propertyinspection,wood-destroying insects,underground tanksand wells,septicsystems,toxicchemicals,and environmental hazardsincluding but not limited to asbestos, mold,fungi,radon or lead-based paint, property boundaries,or deed and use restrictions.Buyer reservesthe rightto VOID thisAgreement based upon the resultsofany inspections, a) WATERANDSEWAGECLAUSE:IfPropertyhasnon-municipalwaterandsewagesystems(e.g.wellor septic). Buyer reserves the right to have invasive testing of said systems to determine functional obsolescence or repair need.Seller understands that recommendations of professional services may impact Price.Should repair or replacement be warranted. Buyer agrees to give Seller one-thousand- dollar($1,000.00)credittowards needed servicesatSettlement.Additionalcostsabove and beyond thisamountforremedyoffaults,asdetermined byBuyerselectedthird-partyprofessional,shallbe deducted by Broker at time of Settlement from Paid From Seller's Funds unless agreed upon in writing bySellerand Buyer.
11) ASSIGNMENT: Buyer has the rightto transfer or assign allof itsrights under this Agreement without written consent of Seller. 12)MARKETING:Buyermay marketthePropertyas"EorSalebyOwner"priortoSettlementDate.Upon execution of this Agreement, Seller gives Buyer permission to market the property in the Multiple Listing Service(MLS). 13)RECORDING: ThisAgreementmay berecordedintheOfficeofRecorderofDeedsoranyotherofficeor placeofpublicrecord.Ifa noticeofthisAgreement isrecorded,the Buyer may record a Noticeof Termination of said Agreement ifthe Seller defaults in the performance of the Seller's obligations and responsibilities herein and such termination shall be effective ifno legal proceeding isinstituted and lis pendensisfiledbytheSellerwithinthirty(30)daysofthedatesuch NoticeofTerminationwasrecorded