Ron-Legrand-style Loan Take Over (Get The Title)

[Aaron Moore]

I have a seller who will sell their house for what they owe on it. I want to present them with a Ron-Legrand-style "Loan Take Over (Get The Title)". I`ve never done this type of deal before.

My question is... What paperwork should I present to the seller to get initial communication and agreement?

1) Should I present a Purchase & Sale Agreement with added clauses about taking over the existing mortgage (and keeping the mortgage in the seller`s name)? Then pass this Agreement to a lawyer to put together the Agreement For Sale documents?

2) OR do I bring specific Agreement For Sale documentation?

Has anyone in Ontario ever done this? Or maybe someone in Alberta can share what works in Alberta?

Thanks for any insight.
Aaron

PS. I’m going to the Ron Legrand event at the end of October, but the seller won’t wait 3 weeks for me to learn this.

 

[JimWhitelaw]

If you're looking for some template AFS docs, you can find some here:



http://myreinspace.com/downloads/critical_forms/m/ron0legrand-canadian-quick-turn-forms/default.aspx



Last week I closed on 3 properties in Alberta via AFS using none of my own money. What I had was:



1) Purchase and Sale agreement w/ AFS clause from B. McGuire (downloadable above)



2) A signed letter of intent with the seller and myself. This proved to be useful to our lawyers, as when questions arose, they had something to refer to in order to understand what our intent was, and thus craft the documents accordingly.



3) I had a specific AFS (very similar to the ON one downloadable above). My lawyer felt there were some deficiencies in it and provided a replacement he felt was clearer, simpler and filled the gaps.



In future, I will likely just do steps 1) & 2) above or even just 1) and then hand off to my lawyer to prepare the specific AFS contract.

 

[Aaron Moore]

Thanks for the advice and resources Jim.
I gave the sellers a purchase and sale agreement with some AFS related clauses. I made it clear that my lawyer would draft further documentation. I also wrote a cover letter for more clarity of intent.

Naturally the sellers aren`t too keen on the mortgage staying in there name. They`ll be looking into other options (they don`t have many good options) and they`ll keep my offer as a back up plan.

 

[nav1940]

QUOTE (aaronmoore @ Oct 19 2010, 02:30 PM) Thanks for the advice and resources Jim.
I gave the sellers a purchase and sale agreement with some AFS related clauses. I made it clear that my lawyer would draft further documentation. I also wrote a cover letter for more clarity of intent.

Naturally the sellers aren`t too keen on the mortgage staying in there name. They`ll be looking into other options (they don`t have many good options) and they`ll keep my offer as a back up plan.

Hi

I would call Ron Legrands office. He was saying he would help out if some had a deal before the course.

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