Hi Friends,
I have a park under contract but as I looked over the Frank and Dave approved contract, i didnt see anything in that seemed to cover the topic that the seller MUST sell for the specified price.
If anyone can point that out i would greatly appreciate it.
Thanks!
Joel
I believe there is a section covering Default that includes specific performance. This encapsulates all terms of the contract not only purchase price.
Thanks for the quick reply! I did a search of the document for default and i guess its simply not understandable in any laymen type terms but this appears to be it:
"© In the event the transaction contemplated hereby does not close or is terminated due to a default by SELLER, PURCHASER shall be entitled to immediate return of the Earnest Money and may pursue all its rights and remedies at law and in equity, including, without limitation, specific performance. "
I am not an attorney, but I suppose i will ask my attorney to be sure this would stand up in a court of law but im guessing if you more experienced folks trust this that there is no concern on that end?
Thanks!
Joel
You should definitely, at a minimum, walk through it in detail once with a good real estate attorney to make sure you know what you’re signing up for.
That F&D contract protects the buyer and the seller has to really be on their game to not breach it. This was one of my biggest frustrations and why I quit using it. After I lost multiple deals because “your contract is too complicated” I decided to take on more risk and also use a simpler approach I could sell to sellers. I could only justify this because (at that time) I had been through over a dozen feasibility periods and have scar tissue to prove it.
I now use a 3 page LOI now and a state promulgated Unimproved property contract for my purchases. This is my personal opinion. A lot of other people have had a lot of success with long form custom contracts, especially those dealing primarily with institutional owners and syndications.
Good luck and keep us posted.