All Forum Posts by: Matthew G.

I have house under contract that I would like to cancel. We found out during the title search that the owner owes more in personal taxes than the purchase price of the house!

The title company is telling me that a need a Cancellation Agreement, signed by both parties. I don't see why I should need to get this signed by the seller, as they didn't tell me about the taxes, and provide clean title.

I have a clause that reads:

"Unless otherwise stated herein, or as otherwise provided on an inspection addendum attached hereto, Buyer shall have the option of inspecting or, obtaining at Buyer's expense, inspections to determine the condition of the Property.Seller agrees that in the event Buyer determines in its sole discretion that the Property is not suitable for its purposes, Buyer may withdraw this offer to purchase at any time, and the earnest deposit shall be returned to buyer, upon the sole demand of buyer to the title company."

That should be all I need, right? Or do I need to get a Cancellation Agreement? Thanks!

Hey everyone,

So the first deal I have under contract is a great deal. I have it under contract around 60% of ARV, INCLUDING all repair costs. The only issue is we don't have clean title (yet). We need to go through a quiet title action, and get it done before August (tax sale date).

I don't think this part will be an issue, but the problem is the seller cannot afford to pay the attorney fees to get the quiet title. I am a little reluctant to pay these out of pocket, as that is money I cannot get back. But there is a lot of profit to be made.

I am thinking I will tell the seller that I will pay it, if we lower the sale price accordingly. I know I will be taking some risk, but $2k will not bankrupt me if everything falls through, and I find that an acceptable risk here.

What do I need to do to get the contract price lowered? Have a new contract filled out?

I went through this process when buying my personal home, and I know we filled out an amendment, but if someone could help me out with what steps I need to take I would appreciate it.

Jon, that's what I am saying, I appreciate the advice.

Justin, I have not performed a title search, as I don't really want to pay for one if I have strong doubts it will come up clean. I mentioned the probate lawyer was subpar, as he stopped returning the seller's calls and failed to produce title after probate.

I mean that the probate lawyer was not able to find any of the previous transfers of title, per the seller. I'm pretty hesitant to buy this house if there might be other heirs out there

I'm working on a deal where the owners cannot find a deed, which includes their (subpar) lawyer. The property has been owned by the sellers parents and grandparents over the years, getting transferred to the heirs as the various family members passed away over time. No one can find deeds of all these transfers, and the sellers are scheduled to lose the property to tax sale this summer. How can we secure clean title to this house in that time?

Thanks for the replies Ned and Marie!

I have the following language:

And:

I believe that covers me?

I just put a property under contract that I plan on wholesaling. However, I just found out that there are $1,000 in taxes due on the property (delinquent). I trusted, but did not verify, the sellers word there are not taxes due before getting it under contract. Lesson learned!

My question is, who is responsible for paying these taxes?

In my purchase contract, it states the seller will pay their part of the closing costs, but I wasn't sure if this could be counted as the closing costs or not.

I am going to call the seller and ask him about it, but I wanted to get a feel for what is standard when this happens. $1k is probably not going to break the deal, but for a ~$20k house it's a fairly significant portion of the purchase price. Thanks!

Thanks misty,I will definitely look into docusign in the future!

That is a good idea John, and probably the way I will go to start. We'll see if the seller has any issues signing it if I haven't executed it

Thanks Wayne and Adam. I guess I'm just worried since I wouldn't be there for the seller to physically sign the form.

That's good advice agreeing to terms before sending the contract. Just to confirm, it is acceptable to email offers then?

Thanks for the response Josh, I'm more worried that the seller would change terms on the signed agreement, as I wouldn't have to sign it again. Maybe I'm just paranoid on that point.

Virtual wholesalers have to be making offers all the time without seeing the sellers in person. Anyone know how they submit offers?