Contract Deposit Always Required???
Quick question...all replies welcome.
I have a Pure Option on a property that expires this coming Tuesday. Property is a 2BR/1.5BA brick townhome in Bmore. It's been slow moving and is priced really low to sell quick--46K on a 60-67K block. Doesn't need rehab just minor kitchen and bath updates if wanted.
Here's my question...I have a guy(an investor) who really likes the house and claims to be able to do an all cash deal however he just put money on a couple of other properties and couldn't put a $500 earnest deposit on this contract until next Wednesday(he's also pre-approved for a bank loan...showed me paperwork regarding this). My normal response is no way but if we were to sign up the deal with him and then collect deposit next week(says he can put $$ on then) would we have a legitimate deal??
If so, we could have a contract by the end of our option expiration, get the property on it's way out of our hands and then hopefully settle (which as a cash dead would be quick) and be done with it.
What would you do or whaddya think???
A contract to be valid needs consideration. Most deeds start for ten dollars and other valuable consideration. See if he has something other than cash, diamonds, rare coins. baseball cards, GOLD. Try to get him to put up something. If you have to get a post dated check as a last resort
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
in Arizona, there is a requirement that at least $10 change hands in order for the contract to be enforceable in court. If it's the same where you live, collect $10 from him now, and stipulate $490 due on or before next wednesday if you want. If he's a cash buyer, he should be able to close as soon as the paperwork can be procesed. As long as you are in a solid position to be paid for your part, is it critical that you collect $500 up front? This could all be done in a couple of weeks.
I think I may have overlooked something in my previous post. Do you need the $500 to excercise your option? If so, you may have to front the $500 for a day. I think I get it now. however, I'm pretty sure that if you collect $10 your contract is good.
Good Luck,,
Jeff
Does it make sense to take his post dated check and submit it on your deal? The worst that happens is that your seller says no.