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i need answers to these objections

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This topic contains 10 replies, has 0 voices, and was last updated by Avatar of areyes areyes 11 years, 2 months ago.

Viewing 12 posts - 1 through 12 (of 12 total)
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  • #5082
    Avatar of areyes
    areyes
    Member

    It is titled “Non-Exclusive Option” but throughout the agreement it references “exclusive option.” See paragraphs 2, 4, 5.

    At 5 a., we have the estimated value of the house as the current principal. I don’t know if there is a pre-payment penalty…shouldn’t that be factored in to the total purchase price?

    Also at 5a, it references a payment by you of 4,395. What is that for?

    At 5c it says that if you breach, all I get is one dollar (the “option fee”), but at 5d, if I breach, you can sue for specific performance or damages…..A little lopsided, wouldn’t you say?

    At 5e, it says I agree to remunerate you for all itemized expenses….what kinds of things would that be?

    That’s it for now. I’m still uncomfortable about the fact that this agreement seems to bind me to a specific course of action (assuming you find a tenant/buyer), but that it does not provide any assurance about what the subsequent agreements will be — it has an integration clause at the end saying that this agreement is the only agreement and no other terms govern, but in my mind, your assurances about what the second step will be are entirely material to me agreeing to this first step….

    #26854
    Avatar of jerry carey
    jerry carey
    Member

    Alvin asked:

    It is titled “Non-Exclusive Option” but throughout the agreement it references “exclusive option.” See paragraphs 2, 4, 5.

    Alvin … it’s a non-exclusive option for the purchase of the real property, but an exclusive option for the personal property … a Beneficial Interst in a Trust. This prevents the seller from going around you!

    At 5 a., we have the estimated value of the house as the current principal. I don’t know if there is a pre-payment penalty…shouldn’t that be factored in to the total purchase price?

    It should be factored-in only if the Trust termination date is prior to the expiration of the prepayment penalty termination date!

    Also at 5a, it references a payment by you of 4,395. What is that for?

    Alvin, that number doesn’t appear in my template. Check your numbers/amounts that you input into the template. If blank … it should default to the minimum charges by NARS for set-up … 1% + required fees.

    At 5c it says that if you breach, all I get is one dollar (the “option fee”), but at 5d, if I breach, you can sue for specific performance or damages…..A little lopsided, wouldn’t you say?

    No! The dollar is for breaching before exercise of the option and the specific performance, etc. is for post exercise of the option when an RB has been found!

    At 5e, it says I agree to remunerate you for all itemized expenses….what kinds of things would that be?

    Advertising, signage, etc.

    Hope this helps.
    Jerry Carey

    #26855
    Avatar of dave salcido
    dave salcido
    Member

    Non Exclusive becomes Exclusive when the Optionee has met the terms and conditions for exercising the option as set forth in the agreement.

    #26856
    Avatar of dmclaen
    dmclaen
    Member

    Alvin,

    It appears you are dealing with an “unmotiveate seller.” If it were me, I wouldn’t waste my time with someone who is pointing how unbalanced your NEO is. When someone starts using terms like “uncomfortable and lopsided” on a NEO then you are setting yourself up for a frustrating transaction.

    Stick to motivated sellers, will make your life much easier.

    Daniel

    #26857
    Avatar of areyes
    areyes
    Member

    im learning a lot from this seller because he’s a litigator. its his job to pick apart the contracts. so far he’s asking a lot of questions and im answering them to the best of my knowledge. if i dont get a NEO signed, oh wells. ive picked up a few things from this experience. i cant complain. =)

    #26858
    Avatar of areyes
    areyes
    Member

    so this is a NON EXCLUSIVE OPTION towards real property and then converts to an EXCLUSIVE OPTION towards personal property upon securing an RB and exercising the option

    #26859
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Alvin,

    Get a grip. You are spamming. How many threads are you going to start on the same subject??? Your conclusion above is not entirely correct. It becomes an exclusive option upon signing, not upon securing an RB or vesting title in trust.

    http://landtrust.net/board/viewtopic.php?t=7093

    #26860

    Who CARES? Screw the Attorney and Make A Damn Offer already. Its worked for me over 100 times, including the ones that someone got a damn attorney. Forget’em, call someone else.

    Geez, you guys are so busy analysing this stuff you can’t close a deal. Believe me, if there needs to be a change in the documentation, NARS and Bill will make it. In the meantime, the waters fine and so are the docs, including the NEO.

    If what you’re saying is true about not having an interest to market the property then every damn LO and Sub-To Investor out there has the same problem. When was the last time you say the Sub-To police come through someone in jail for making a freaking offer.

    Now go sic’em.

    #26861
    Avatar of areyes
    areyes
    Member

    @mtnwizard49 wrote:

    Alvin,

    Get a grip. You are spamming. How many threads are you going to start on the same subject??? Your conclusion above is not entirely correct. It becomes an exclusive option upon signing, not upon securing an RB or vesting title in trust.

    http://landtrust.net/board/viewtopic.php?t=7093

    sorry about the spamming. i read the other thread.

    #26862
    Avatar of areyes
    areyes
    Member

    @Scott_L._Moyes wrote:

    Who CARES? Screw the Attorney and Make A Damn Offer already. Its worked for me over 100 times, including the ones that someone got a damn attorney. Forget’em, call someone else.

    Geez, you guys are so busy analysing this stuff you can’t close a deal. Believe me, if there needs to be a change in the documentation, NARS and Bill will make it. In the meantime, the waters fine and so are the docs, including the NEO.

    If what you’re saying is true about not having an interest to market the property then every damn LO and Sub-To Investor out there has the same problem. When was the last time you say the Sub-To police come through someone in jail for making a freaking offer.

    Now go sic’em.

    i did send the purchase offer and NEO. he’s hesitant to sign the NEO until he gets clarity whether its non exclusive to real property or non exclusive to personal property.

    #26863
    Avatar of red12
    red12
    Member

    I know I’ve seen the answer to this on this board but I can’t seem to locate the thread.

    Oh wait.. it’s coming to me now….

    “NEXT!”

    Just kidding with you, Alvin. You already know this. Gain a little knowledge from working with this guy but if you actually end up with his house, I predict nothing but misery.

    #26864

    @Dave Salcido wrote:

    Non Exclusive becomes Exclusive when the Optionee has met the terms and conditions for exercising the option as set forth in the agreement.

    Alvin,

    Once, you do what Dave discribes, What do you have ?

    A Partial Beneficial Interest, in a Title Holding Land Trust.

    Does he get the “Partial” part ?

    Doesn’t “Non-Exclusive” mean something to him, whether it’s for Real Estate or something else.

    Which is he trying to do ?; Protect the Real Estate ( and the acquisition of it, from clouds, entanglements, liens, etc. ) or Get Rid of it and dump the full obligation to it away, forever ?

    You are asking for a NON-EXCLUSIVE Option to have the Right to EXERCISE your Option, at which time he WOULD BE RELINGUISHING Title to the Trusteeship, of Equity Holdings CORPORATION ( acting as Trustee ).

    The Trustee is Directed by the Beneficiaries of the Trust ( as you know ), of which he will be One, YOU will be one and the RB(s) will be one.

    Someone who has a Property that they are looking to Relinquish, under the watchcare of the Corporate Trustee, is someone motivated enough to be O.K. with everything involved, before you get to these questions, first.

    If, you file a Memoradum of Option, you will still have some control over your “Non-Exclusive” position, if you want it.

    He can’t have the Full Benefit of Control and get Full Price, however, you will give him Full Price, if he is willing to leave the loan in place and most or all of his Equity intact, right ?

    You have to admit, Red12 ( Richard ) posted a cool reply.

    Thanks, Alan

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