2 Contracts On One House
Hello,
I would like to see how other professionals would handle this problem.
I have a contract on a house. It is the 3rd contract. The first 1 was put on hold because seller could not get tenant out of house. The close date had come and gone by the time they evicted. 2nd contract was same as first but new price because of damage tenant caused and new dates. It happen to be in dec. now so holidays,damage,and price proved hard to wholesale. I re-negotiated with seller one day before contract ended.(although in 2nd contract I had 60 day extension)3rd contract, we agreed on lower price, assume mortgage and do owner financing, a few days later selller says i dont want to do that i need the money, my relative wants to buy. I say sorry we have a contract. A few days later I get told I wont sell to you. Now today I find out she signed a contract with another guy a few days earlier. He got a memorandum and I did not. I have 2 to 4 end buyers because I keep working on it to close as cash instead of O/F. besides attorneys what is the integrity thing to do? I dont think walking away is the answer.
Thanks for your input.
my end buyers just happened. After the price was lowered.
kerivoice,
Glad to meet you.
The local Real Estate Boards impose regulation relevant to the distribution or aid in distribution of a homestead with the intent to protect the consumer (and in some rare cases monopolize the marketplace).
Whether or not this legislation is put into place in a criminal or a civil context, it does appear fairly evident that the enforcement of this legislation would be limited to that of:
a) When a consumer is being blind-sided (ie: you are acting on his or her behalf without proper licensing and steering him/her wrong)
b) You are continuously taking a "fee" for selling real estate.
If you are working with an investor, and you are paid by the investor, who has experience in real estate transactions, and you are not party to that transaction (ie: a consultant) you should be ok, for the following reasons:
1) You are taking a fee for selling information, not real estate (nobody can prevent you from charging $5.00 to tell him or her were the nearest gas station is, or where the nearest "deal" is)
2) Even if legislation was in place to protect the consumer, you have conducted no harm to the consumer....so in a semi-perfect world, you can indeed pay for a lead on a house!
I think it is important to know, most investors are opposed to the local Real Estate Boards attempting to corner the market on Buying/Selling properties, I am certainly of the opinion that the local Boards would like to see no investors/creative RE at all so that they can continue to take a small chunk out of every property sold and have the properties sold according to their "rules & regulations".
There is also such a thing as a simple Partnership Agreement, thereby making you and the investor principals in the transaction. The Bird Dog is bought out of the Partnership by the investor, thereby violating no State Statute.
John $Cash$ Locke
Thank you! That has been incredibly helpful!
I really appreciate you taking the time to leave such a detailed explanation.
If anyone else has any thoughts on this--please feel free to share.
Great information here. Does anyone know if the same would apply to the sale of a commercial property . I know in CO. there is a $ 50.00 allowance to referral source but I have two parties who deserve fair compensation for their involvement in the transaction - none of whom are realtors. I would ie to pay them as such.
My idea would be to put a partnership/JV agreement between the group(3) and state that we would assign a representative to represent and take the deal down legally and pay out the agreed upon % of revenue ??? possibly by POA or ???
Anyone with advice on this situation. thanks.
IN CA finders fees are legal for commercial and residential property.
When you want more that what someone says they can pay.. I have a computer consulting company that they pay for computer services.
Another company paid me a 5K consulting fee to help them find their new location.