Don't understand what to do with this contract?

Anybody want to add, feel free. Hope this helps a bit.

Purchase and Sale Agreement
This agreement is made this ___(16th)____day of _____(February)_____, 20_(09)__
between Seller(s)___(Seller‘s name (first & last, maybe middle initial))______...
Social Security #______(Seller‘s SS#)_______
and Buyer ___________(Buyer‘s full name or company name (however you would want it recorded)_&/or assignees)________________...and or assignees.
Seller agrees to sell and buyer agrees to buy the following described real property together with all improvements and fixtures and the personal property described below:
Street Address________________(123 Any Street)_________________...
Legal description: ____(legal description from courthouse or title company, or other record you have)_____...
_______________________... County __(county prop is located in)_____.
Personal property included: ___(anything that is not physically “attached“ to the property, but will be included in the sale)___...
Earnest Money Deposit $___(whatever amount you are putting down to “lock up“ the contract (as little as possible))___
Cash To Seller At Closing $____(balance due after earnest $/ (not sure how this combines with the next 2 lines))______
Existing Loans & Liens $______???___________
New Loan To Seller At Closing $______???________
Purchase Price $____(purchase price agreed upon)_______
The purchase price to be paid as follows:
1. EARNEST MONEY to be deposited with licensed title company or attorney within 48 hours of acceptance by seller. The buyer will take title subject to the following loans on terms agreeable to the buyer:
(*****************The next sections will be determined by whatever terms you and the seller agree upon and filled out accordingly***************************)
A. Loan to _______________________________________ Balance
$____________________________
Interest rate: _________ %, Monthly Payment $___________________ Loan Number
_____________
Date last payment made____________________________ Loan current through
_________________
B. Loan to ________________________________________ Balance
$___________________________
Interest rate: _________ %, Monthly Payment $___________________ Loan Number
_____________
Date last payment made____________________________ Loan current through
_________________
Other liens: ________________________________________...
Any overstatement in the above loan and lien amounts will be added to note to seller. Any understatement will be deducted from balance due at close.
2. THE BALANCE DUE SELLER in the amount of $ _______________ shall be paid as follows: ____________
______________________________________...
______________________________________... including interest at the rate of
_______%.
______________________________________...
______________________________________... including interest at the rate of
_______%.
3. PRORATIONS, IMPOUNDS & SECURITY DEPOSITS: Loan interest, property taxes, insurance, and rents shall be prorated as of the date of closing. All security deposits shall be transferred to buyer at closing. All impound accounts for taxes and insurance are included in the purchase price and shall be transferred to buyer at closing.
Any shortage in these accounts shall be charged to seller at closing.
Page 2 of 2 Purchase and Sale Agreement
4. CONDITION OF HOUSE AND APPLIANCES: Seller warrants that the house and all mechanical systems and appliances will be in good working order at closing. Buyer will have access to property for inspection and the cost of any needed repairs will be paid by seller at closing. Appliances and other personal property will be transferred by bill of sale free of encumbrances at closing.
5. CLOSING DATE AND TRANSFER OF TITLE: This transaction shall close on or before ____(date you choose. try for 60-90 days out, less if you can make a quick sale (a plus sometimes))___,
20_(09)_. Closing will be held at ______(location of closing, usually a title company (I usually put “buyer‘s choice“ here, and let them know where if accepted))_____ and Seller(s) agree to transfer marketable title free and clear of all encumbrances except those listed and pay any required state taxes or stamps required to record deed and mortgage. Seller agrees to furnish title insurance in the amount of the purchase price, showing no encumbrances or exceptions other than previously noted.
6. DAMAGE TO PROPERTY: Seller shall maintain property in its current condition and keep it insured against all loss until closing in the event of destruction covered by insurance, buyer may elect to close and collect the insurance proceeds.
7. DEFAULTS: If buyer defaults under this contract, any and all monies deposited by buyer(s) shall be retained by seller as full liquidated damages. If seller defaults, buyer may pursue all remedies allowed by law and seller agrees to be responsible for all costs incurred by buyer as a result of sellers default.
8. SUCCESSORS AND ASSIGNEES: The terms and conditions of this contract shall bind all successors, heirs, administrators, trustees, executors and assignees of the respective parties.
9. ACCESS ADVERTISING AND REPAIRS MADE BY BUYERS: Sellers agree that buyers may advertise property and have access during reasonable hours to show property to others. If the property is vacant and in need of repairs, buyers at their expense may make repairs and improvements, and any improvements made shall become the property of the seller should the buyer default,
10. ADDITIONAL TERMS AND CONDITIONS:
________(any other conditions or contingencies you want to add)____________...
______________________________________...
______________________________________...
______________________________________...
The undersigned have read the above information, understand it and verify that it is correct.
SELLERS:
____(seller‘s signature/ date of acceptance)_____...
_________(co-seller‘s signature (if any)/date)_______...
BUYERS:
____(buyer’s signature/ date of acceptance)_____...
___(co-buyer’s signature (if any)/date)__...
__________________

*****************************************************

Ok so would you add the assignee's signature on this contract so you have the option for a new buyer to take over the obligations? Or would you have to create a whole new contract altogether with the seller to assign to a new buyer?

Hi guys,I just have a question.When it comes to the purchase contract where do you put the assignment clause at(on what line) and what do you write as an assignment clause?It would be very helpful for someone to responed back to me please;)

Thanks;)

Yeah I know what you mean Roypncss. These contracts are really confusing to me too, and it would be great if someone could just lend out all the answers. I really wanna learn how to use em with full confidence, rather than wonder if I did it wrong or not.

Actually, you only have to include the words "and/or assigns (or assignees)" to your name on the purchase agreement. You don't have to have your buyer's signature or even know who it is yet, for that matter. They would just be taking your place at closing (you'd have to let the title company know who it was prior to closing). The "assignment contract" is a separate contract between you and your end buyer/investor. You can find it in Dean's docs on the left of the page (there are probably other examples in here as well).

Hope that helps.

Rina

Yeah I know that the "assignment contract" is a separate contract
with the end buyer. But what I wanna know is do you have to create a whole new purchase agreement contract to assign to the end buyer? or can you just give him your purchase agreement contract that you originally made with the seller?

No, use the original...

Ok so would you have to add an "assignment clause" somewhere on the contract or what? And how does an "assignment clause" look like? And where can I get one?

And wouldn't you add the option for an assignee to sign the contract too? instead of just having buyer signature and seller signature. Wouldn't you add assignee's option to sign the contract as well?

For example:

Buyer's signature _________________________

Seller's signature ________________________

Assignee's signature ________________________

I have the same question(s) as you. Maybe it is as simple of just using the assignment contract that is signed by you and your end buyer as an "addendum" to the original purchase agmt contract that you signed with the original seller.

And if this is the case, it also seems like your end buyer will know what you paid your seller.......Is there possibly another approach where the end buyer doesn't have to know what I paid to the seller? Or would I have to perform a double closing?

Anyone's advice would be greatly appreciated to help us out here. I am sure these questions have been raised and answered in previous threads, but because of the multitude of threads, it is difficult to get answers to your specific questions all the time. My apologies in advance for asking these same questions.

Neil

Hahaha man I just so happened to stumble to the solution to your problem in a thread I just read today.. LOL talk about luck of the draw

Ok I think this might solve your little dilemma. Note I got this from another thread so this isn't something I would fully understand if you were to ask further questions.

Perform a back to back closing. To do this you would get another blank contract just like the one you and the seller signed together and fill it in with YOU as the seller and the end buyer as the BUYER. Then go to your title company with all the paperwork (they will tell you exactly what they need from you) and get them to perform the back to back closing.
With a back to back closing the end buyer never knows how much you are making on the deal.
With an assignment fee he will know exactly what you are making.

Thanks........already knew about double closings (that is one concept I have written about on many other threads) re Coastal Funding HML.

So it seems to me that we use the assignment contract as an addendum to the orig purchase agmt.

I'll ck some of the old threads as well.

Neil

Well I don't know much about double closings, but I heard the tittle company will charge twice as much for the fee, or something like that anyway.

But anyway hope you find the solution to your problem Neilkim24. And learn as much as you can. With all the support that you get here, you would be a fool to not take advantage of it lol.

Have a good one

Here is a thread that cbr posted. Looks like he is advising at this time to use attys to do the assignments:

Here it is:
The Best Scenario Possible When Assigning Contracts
Now that I have been assigning contracts I have learned a ton from the entire process. I see a lot of people on this site that want to assign contracts but are struggling getting through that first one. By the way once you get through the first one it gets really easy after that. Here is a list of the ways to assign contracts with the least amount of resistance. Just follow these steps and victory is yours-it is not hard to do and don't let anyone else tell you it is.

1.) Find your buyers first. The buyers that will pay cash should be at the top of your list. The reason is that some banks will not let their clients close on a contracts that is not written in their name.

2.) Lock up deals that are For Sale By Owner, or if the house is listed with an agent then make sure the house isn't bank owned. I'm not saying bank owned properties can't be assigned I am just saying that it is much easier to assign deals that aren't. All you do is sign your name and after your name you write "and/or assigns". The place you write this is on the line that says "Buyer" at the top of the page (which is right above the legal description of the property). You only have to write and/or assigns in this spot and not anywhere else.

3.) Make sure to get a real estate attorney in your area that is familar with assignments of contracts involved with the closing. This is a must. A title company does not have "legal counsel" to be able to handle an assignment. An attorney does. Once you lock up a deal with and/or assigns and you have a buyer in place call your attorney and give him a copy of the contract and the phone number of the buyer. He will do the rest of the work for you. He will call you if he needs more info. DO NOT USE A TITLE COMPANY TO HANDLE AN ASSIGNMENT OF CONTRACT. A title companies job is to make sure a clean title is delivered-they are not in the business to give "legal counsel". That is why some title companies will tell you it is illegal to do assignments because it is illegal for them to change contracts because they are not lawyers. I hope I am making this clear. At the point when the attorney starts getting the assignment put together, your new buyer will send a check to the attorney. You can do one of two things-have the check made out to the attorney and then the attorney will in turn write you a check (the best way) or the buyer can just make the check out to you or your corp and the attorney can hold the check until closing. Note: some title companies will do assignment of contracts, but they are few and far between. It is only a matter of time before they won't handle them any longer. I have met several people that used to be able to do assignemnts and then one day their title company told them they weren't aloud to do them anymore. When I explained to them why-they looked at me with a new sense of hope. Now after learning what I have taught them they are back to the races.

4.) Make sure you help your new buyer run through his due dilligence checklist. The buyer needs to have the property inspected, get insurance ready, etc.

I hope all of you realize this is LEADING EDGE information. This isn't stuff I have read somewhere or stuff that someone else is using. This is information that I have learned as I have been doing assignments. You will not find this info anywhere else. As I have discovered several of these "mistakes" that some of the biggest guru's in the country were making when teaching assignments of contracts I realized why so many people have failed when trying to complete one. Please use it and go make money. I want you to make money, Dean wants you to go make money, America wants you to go make money. Go out there and accomplish your goals and dreams. Get it done!

Once I begin assigning, I will ask my realtor for attys she works with and see if they have dealt with assignments. Can never go wrong using a "good" atty!
And also per above, it looks like cbr is saying that when the contract is being assigned to have the buyer send a ck to the atty and he will sign over to me (I assume the assignment fee that I am charging). Just curious as to why the buyer would pay the fee prior to the actual closing (what happens if for some reason deal does not go through)??? I would think that I would collect my fee at the closing. Hmmmmmmm

Neil