QUOTE (TerryKruse @ Oct 21 2009, 11:54 AM) I am visiting a selling in the hope of getting a option for a "pretty house" in a great neighbourhood. I plan to Round Robin/Cash Sale the property within a short time.
I have 2 questions.
1. When I do this option, do I have to also fill out an Agreement for Sale or does this step come when I exercise my option?
2. The Option form has space for a Witness. What happens if there is only the seller and I at the meeting?
Thank you in advance,
Terry
Hi Terry, both good questions.
1. When you get your option signed, that gives you control of the property. If your exit strategy is to do the Round Robin/Cash Sale, then, as long as you get a buyer who is just getting their own new mortgage as seems like for your pretty house in great neighborhood, you DON`T NEED the agreement for sale strategy. Once you settle on a buyer, they do their diligence and go unconditional with you . At that point , you can handle the sale in a couple of ways.
- You exercise your option with your seller and have your lawyer, ( I see from another post that will be me
), handle the paperwork going between your seller and the ultimate buyer, or; You could tell your seller you have a buyer to buy from you. He could buy your option back from you for the amount of the profit you are making and then he closes directly with the ultimate buyer. You would ask to be paid right now. If you get a deposit on your sale to the ulitmate buyer in the amount of your profit, that would work great. You have all your money you are ever going to get and you just let seller clsoe with buyer. Either way would work. # 1 is probably easier and more understandable for all concerned. After you do a few of these and are really comfortable with the process, it will be much easier for you.
2. As for the witness , you don`t need one to be legal but always better to have a 3rd party witness - that is, not your husband or seller`s wife/relative. For our Quick Turn deals, they are not well known and you can bet that some sellers will squawk that they have been mislead... or worse. Great if you have a witness who can testify what went on at a signing. My advice is that you are better off with a 3rd party witness.
Hope this helps
Barry