Help -How do I get off and accepted offer?

[Candi]

I am new to RE investing, have an accepted offer which need to remove clauses by june 6, I found out yesterday, that building has many problems including the the original builder having almost 50% ownership and not paying his strata fees.

a council member said the city is voting to convert that block into high density residential possible this month- some one told me to negotiate bring the buying price down, buy it, and wait for developers to come and buy the building out is a 875 sf 2br 1bth ins ldry accepted offer 170k this property is in Coquitlam BC- I need your advice please- How do I get off the hook without spending on inspection first?

 

[RedlineBrett]

Have you included a clause for review of condo documents and reserve fund study?

If you have, then just say you reviewed the docs and aren`t confident with the stability and management capacity of the condo board... which is the truth anyway. Go through the docs and find some backup for the 50% owership and developer in arrears. If it`s true that would definitely be on there as the existing owners would be talking about it at their meetings and hence it should be included in the meeting minutes.


If you haven`t and the property inspection is the only condition you have then to follow the letter of the law you will need an inspection performed that shows things you aren`t happy with to be able to get out of the deal.

You could try and sneak out saying you couldn`t get financing you liked.

Or you just tell the seller you don`t want to follow through with the deal but want to give them the opportunity to relist as fast as possible. If your deposit is small they most likely won`t pursue you in court and you`ll get it back and off you go.

good luck!

QUOTE (Candi @ Jun 2 2008, 12:02 PM) I am new to RE investing, have an accepted offer which need to remove clauses by june 6, I found out yesterday, that building has many problems including the the original builder having almost 50% ownership and not paying his strata fees.

a council member said the city is voting to convert that block into high density residential possible this month- some one told me to negotiate bring the buying price down, buy it, and wait for developers to come and buy the building out is a 875 sf 2br 1bth ins ldry accepted offer 170k this property is in Coquitlam BC- I need your advice please- How do I get off the hook without spending on inspection first?

 

[Candi]

QUOTE (RedlineBrett @ Jun 2 2008, 11:19 AM) Have you included a clause for review of condo documents and reserve fund study?

If you have, then just say you reviewed the docs and aren`t confident with the stability and management capacity of the condo board... which is the truth anyway. Go through the docs and find some backup for the 50% owership and developer in arrears. If it`s true that would definitely be on there as the existing owners would be talking about it at their meetings and hence it should be included in the meeting minutes.


If you haven`t and the property inspection is the only condition you have then to follow the letter of the law you will need an inspection performed that shows things you aren`t happy with to be able to get out of the deal.

You could try and sneak out saying you couldn`t get financing you liked.

Or you just tell the seller you don`t want to follow through with the deal but want to give them the opportunity to relist as fast as possible. If your deposit is small they most likely won`t pursue you in court and you`ll get it back and off you go.

good luck!
Thank you Brett, Yes I have 3 subject clauses
1- Inspection
2-1st mortgage beeing approved
3-Subject to the buyer, on or before June 04 2008 receiving and approving the following documents with respect to information that reasonably may adversely affect the use or value of the statra lot, including any bylaw, item of repair or maintenance, special levy, judgment or other liablility, wherer actual or potential:

*Form B
*Copy of registered strata plan
*Current bylaws and financial stmts
*The minutes of meeting for 2 years

The minutes which are missing pages btw do not show that the owner owns % only that the commercial part is in arrears- etc -

Thanks - I think I will be ok to back off with your advice on not approving the minutes.

 

[RedlineBrett]

You have a `buyer`s approval` clause with your condo doc review... so that`s basically a free pass out of the deal. Shouldn`t have any trouble there.

Good catch with your due dilligence!

QUOTE (Candi @ Jun 2 2008, 02:41 PM) Thank you Brett, Yes I have 3 subject clauses
1- Inspection
2-1st mortgage beeing approved
3-Subject to the buyer, on or before June 04 2008 receiving and approving the following documents with respect to information that reasonably may adversely affect the use or value of the statra lot, including any bylaw, item of repair or maintenance, special levy, judgment or other liablility, wherer actual or potential:

*Form B
*Copy of registered strata plan
*Current bylaws and financial stmts
*The minutes of meeting for 2 years

The minutes which are missing pages btw do not show that the owner owns % only that the commercial part is in arrears- etc -

Thanks - I think I will be ok to back off with your advice on not approving the minutes.

 

[Candi]

QUOTE (RedlineBrett @ Jun 2 2008, 02:03 PM) You have a `buyer`s approval` clause with your condo doc review... so that`s basically a free pass out of the deal. Shouldn`t have any trouble there.

Good catch with your due dilligence!

Thanks Brett for replying- I was so worried but once I read your message I was ok so I just called and said will not be removing subjects -done by Phone only - do I need to do it in writing? or just that phone call is enough?

Again, thanks a million,
Candi

 

[SamEfford]

Always put it in writing! That way there is no confusion, and every party involved is in complete understanding.

 

[RedlineBrett]

Hi Candi,

I`m not sure what the particulars are with the contract you`ve used in BC, however here in Alberta every condition has a date and time deadline whereby if the condition has not been waived by that time then the condition is considered to be NOT waived and the deal is dead.

So, you can do it by verbal and then just not waive your deal but the wheels won`t turn on getting your deposit refunded until that deadline passes.

Also, out of courtesy to the sellers I think you should submit your non-waiver in writing so that they can try and find another deal. No sense having the property tied up needlessly if you aren`t going to close.

QUOTE (Candi @ Jun 3 2008, 12:43 AM) Thanks Brett for replying- I was so worried but once I read your message I was ok so I just called and said will not be removing subjects -done by Phone only - do I need to do it in writing? or just that phone call is enough?

Again, thanks a million,
Candi

 

[Candi]

Than you Sam and Brett- for your input
I did use a very new Realtor and that`s why I was so worried- she said her manager told her it was ok to do it verbaly - that`s why the subject clauses and the deposit was suppose to be given once subject removed. So I left the matter on her hands sd did call the other Realtor and he was ok with it - Said if change my mind I could counter offer- But with what I found out about the building?? I decided I will look for somewhere else!!