Hi All,
I am interested to here from the the guys who are sourcing their own property.
I was doing this in South Africa and the critical part of sourcing your own property, once a good deal is found, is to lock the seller into the deal AND be able to have a 'get out' clause, should you decide to pull out the deal.
How i did this in South Africa is that when i found a really good deal, i would get the seller to sign an offer to purchase, which locked him into the deal. I would also have special conditions in the offer to purchase stating that the offer was subject to 1) a suitable property inspection 2) obtaining a mortgage and interest rate to my satisfaction.
Generally, the sellers seldom wanted to back out the deal as they were in a position where they wanted to sell their property.
What do you guys do once you find a good deal which you intend to buy or pass onto other investors? Can you get the seller to sign an offer to purchase OR do you get the seller to sign some sort of mandate giving you exlusive rights to buy the property (or sell to other investors) within a certain time i.e 30 days.
A friend of mine in the UK gets an option agreement signed by the seller which is the closest he gets to securing the deal. If they do pull out of the deal he registers a charge on their house and then at some point in the future when they try sell it, he gets contacted by the sellers solicitor and then demand a fee for him to release the charge in order for them to complete. It is a way for him to reclaim some costs which would have been lost when the seller previously withdrawn.
What have you guys been doing to secure deals?
Look forward to hearing from you.
Regards,
RobbieYouc an do the same thing here.
Get a contract signed by the seller and then you delay in signing. You can only enforce a contract if you have the other person's signature. You can also exchange contracts subject to various conditions such as finance etc so you can back out.
You can also use options. This will give you the ability to pull out but lock the other person in. You can also assign an option to another person with minimal stamp duty.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry, much appreciated.
Who would be a good person to speak to to get an Offer to Purchase template or Option document drawn up?
Are there any legal guys on the forum who can assit me?
On the same note..
Are you able to make ammendements to a signed Offer to Purchase document?
In South Africa we were able to get the seller and buyer to sign an Offer to Purchase, which would be presented to the attorney handling the transfer.
After the OTP was signed by the seller and buyer, there might be a reason to make amendments to that document. For example, the agents commission might be changed or perhaps the buyer and seller decided to add or remove items specified, such a adding or removing maintenance work.
Is this possible?
RobbieP wrote:Thanks Terry, much appreciated.Who would be a good person to speak to to get an Offer to Purchase template or Option document drawn up?
Are there any legal guys on the forum who can assit me?
Your solicitor should be able to draw an option up. You would generally need a contract of sale attached to the option so it wouldn't work with just submitting a standard option agreement.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
RobbieP wrote:On the same note..Are you able to make ammendements to a signed Offer to Purchase document?
In South Africa we were able to get the seller and buyer to sign an Offer to Purchase, which would be presented to the attorney handling the transfer.
After the OTP was signed by the seller and buyer, there might be a reason to make amendments to that document. For example, the agents commission might be changed or perhaps the buyer and seller decided to add or remove items specified, such a adding or removing maintenance work.
Is this possible?
Once an offer is submitted and accepted there would be a binding contract. But it is possible to amend the terms of the contract if both parties agree. Agents commission would be subject to a separate contract between the seller and their agrent.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry, you are a star!
Any recommendations for a solicitor based in Sydney?
I am a solicior based in Sydney, but am not taking any clients at the moment. I would recommend Anthony Cordato as someone who knows property, options etc well. I think his website is http://www.businesslawyer.com.au
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry, please do let me know when you do start taking clients as you do seem like someone i could work with
Thanks for all the advice/
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