Contracts... And/Or Assigns
I'm just getting started in my real-estate investing, and I'm interested in a little guidance regarding my first contract(s). I just want to be sure and protect myself. I wanted to know the proper way to use the "and/or assigns" in my contract. I am also planning on purchasing the real estate within an LLC I am currently in the process of starting up. For protection and legality, I assume that the LLC must be listed on the contract instead of the names of my business partner and I. Is that correct? 
I am also planning on including many "subject to" clauses, including a mortgage contingency, inspection contingency, partner/investor approval (does this work with either both our names or the company name, since we're both included?), and any others that prove useful.
Could someone help me shed some light on this subject? This may indeed be a newbie question, I know. I am familiar and comfortable with a standard residential contract, but I know this type of deal requires some extra attention. Also, does an attorney approval period help protect me if I make an error?
Thank you all for your time. Feel free to email me to discuss.
Jeff
First, have you actually done any deals yet? If not, why would you go to the expense to form and maintain a business entity in a business that you may/may not be successfuly at, or that you may/may not even like? This of course is personal opinion, but I think you're wasting your money on this until you've actually got a few deals under your belt to know that it's something you want/can do.
Contingency clauses can be used, but know that the more there is, the less chance you have of getting the deal accepted. More so if you are offering less than full price. Standard clauses, such as a finance contingency or an inspection clause (as long as it is short-term) get approved fairly easily, but such contingency's as ''upon partner's approval'' or ''on condition that I find a tenant/buyer'' are pure weasel clauses. They are not that effective, and will lose more deals than they protect.
Remember that REI is still investing, and with investments comes risk. Trying to protect yourself to the point of ''no risk'' also gets you also to ''no gain.''
Whatever name you want on the deed must be the one on the contract. To use the ''and/or assigns'' simply put it at the end of your name(s). Make sure not to include/cross out any ''non-assignment clauses'' within the contract. You may even want to write in a clause about the contract's assignibility and the terms/conditions, etc for assigning.
Roger
Roger,
You make some excellent points. I appreciate your input and advice.
Jeff