That's right. I was asked to read a purchase contract -- a contract inwhich I was NOT involved in creating in anyway. The Seller was being represented by a broker; and, the buyer was being represented by another broker. So, before I accepted, I had to let the attorney friend of mine know, that I can't give a BPO on this or the other brokers would hold me liable.
So, I read this contract. It was fo rthe purchase of a property with a house. (For those who are new, I do NOT work in the residential side of real estate.)
From what I could understand, the buyer was buying an option to purchase a home for a substantial sum. There was an escrow, there was a closing period. And, there was going to be a Grant Deed issued upon the close of escrow.
The initial red flag was the offerred price. It was ten times the value of the house. "Huh?" you asked.
That's correct. 10X the value of the property. The next red flag was that a Option was part of the purchase. The Buyer would pay $$$ per month for eighteen months. Not, bad. The seller would get some income for a year and a half.
BUT, the killer was that "Upon the close of Escrow, a Grant Deed would be issued to Buyer from Seller AND RECORDED. Are you with me? Did you catch what I caught? (It took me three re-reads to fully understand this one.)
So, I excuse myself from reading further. I was NOT apart of the transaction so, I gave the contract back to the person who asked me to read. That person only asked me one question: Did you see the problem they saw?
The one about the option and escrow closing with maybe only $1,000 dollars paid to Seller?
That person said, that's the one.
So, there was a little trickery involved. This is Halloween. Why not a little trickery?
Real Estate is funny. I didn't wonder about why they asked me to read this for them.
For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net
So, I read this contract. It was fo rthe purchase of a property with a house. (For those who are new, I do NOT work in the residential side of real estate.)
From what I could understand, the buyer was buying an option to purchase a home for a substantial sum. There was an escrow, there was a closing period. And, there was going to be a Grant Deed issued upon the close of escrow.
The initial red flag was the offerred price. It was ten times the value of the house. "Huh?" you asked.
That's correct. 10X the value of the property. The next red flag was that a Option was part of the purchase. The Buyer would pay $$$ per month for eighteen months. Not, bad. The seller would get some income for a year and a half.
BUT, the killer was that "Upon the close of Escrow, a Grant Deed would be issued to Buyer from Seller AND RECORDED. Are you with me? Did you catch what I caught? (It took me three re-reads to fully understand this one.)
So, I excuse myself from reading further. I was NOT apart of the transaction so, I gave the contract back to the person who asked me to read. That person only asked me one question: Did you see the problem they saw?
The one about the option and escrow closing with maybe only $1,000 dollars paid to Seller?
That person said, that's the one.
So, there was a little trickery involved. This is Halloween. Why not a little trickery?
Real Estate is funny. I didn't wonder about why they asked me to read this for them.
For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net