Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.
I have provided my comments below in bold, underlined, italicized text.
I'm typing your answer. It takes a bit of time to respond to the entire contract.
1. Full Purchase Price: $325,000 of which the above deposit shall apply as part. This contract is subject to: 1) buyer finding adequate financing and subject to partner's approval. Should adequate financing not be found, or property does not meet with partner's approval, all of said deposit shall be returned to the buyer. You'll want to set a deadline for this...no more than 30 days; you don't want to be bound for long while he is not bound. 2) Subject to clear title, seller to cover any liens, judgments, applicable fines from net proceeds.You want to either have the right, but not the obligation, to clear unacceptable liens or decline in which case Buyer has the right to terminate. 3) Buyer will release seller from contract with advance notice for any reason before closing.No! This makes this only an option contract..you are bound and he is not. 2. Other property: All Appliances, carpet, air conditioning, personal property, etc convey with property in as-is condition. Any personal property conveyed has no contributory value and is being left for Seller's convenience. No warranties given or implied. 3. Closing: Closing shall be within 60 Days or less, with possession granted upon closing. Sellers/Buyers Title Co. to hold deposit and close transaction OK. 4. Title commitment: This contract may be automatically extended for up to 60 days if needed to insure clear title. Seller agrees to convey title to the aforesaid property to the Buyer by deed appropriate to Sellers status, free and clear of all encumbrances or liens except real estate taxes and as noted here: There will be all kinds of other encumbrances such as utility easements. You want to agree upon "permitted encumbrances" up front. 5. Radon Gas -Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities. May present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings. Additional information regarding radon and radon testing may be obtained from your county public health unit. 6. SOPHISTICATED BUYER Buyer represents that they are a sophisticated buyer and understands the term As-Is, takes complete responsibility for doing their own inspections and assessing value, and has been afforded an inspection period of 5 days. Buyer further understands expressly that there are no warranties whatsoever as to the condition of the property or anything contained in, on, or surrounding the property. The Buyer accepts the property in its As-is condition with all faults. 7. Default: Should Buyer default, for any other reason than the subject to conditions mentioned in paragraph one, the deposit is to be forfeited to seller as full damages. If Seller defaults, full deposit to be refunded. Make sure Seller has no additional liability. 8. Buyer-may assign, and be released from liability under this contract Not without your prior written consent. . 9. This is intended to be a legally binding contract. If not fully understood, seek the advice of an attorney prior to signing.
OK - Thanks just making sure
I guess I left off the last two items. They are as follows:
8 - Buyer may assign and be released from liablility under this contract
9 - this is a legal binding contract
This seems to buttress you comment about a one-sided commitment
sorry... I see you addressed those
You don't want to allow the buyer to assign this contract without your prior written consent. You want to know who you are dealing with. This basically just obligates you for a period of time while he goes shopping for investors. Typically, you would want an investment buyer to already have the money tied up. I would give him 30 days to be bound; 60 days to close; and if he does not close after committing, he loses his earnest money.
Thank you... is there anything else?
You're welcome...it's been my pleasure to help! I think that's it! :) Have a great day!
OK - you too
Thanks...I appreciate that!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).