deposits: Follow up to the non-refundable deposit story
- 02/12/10 09:48 AM
If you read my last blog about the buyer who breached the contract but got their deposit back because the contract included an unenforceable non-refundable deposit clause, let me give you an update. Some people are commenting on the bad buyer. My focus in on the agents and they were the cause of the problem. The agent wrote a contract that was unenforceable. If they didn't know the significance of writing an offer with no Liq. Damages, shame on them for not advising their buyer see an attorney. It was a $14 Million house. Do you think a $14 million buyer knows at … (1 comments)
deposits: How to keep Buyers in Short Sale Transactions!!
- 08/20/09 06:38 AM
I think all of are facting this problem. Buyers get all excited about a property, make an offer and lose it. Then they make another offer and with multiple offers, lose that one too. Then, they finally get into contract, only to have their agent tell them that (1) it might take 3-6 months for the deal to go through, (2) in a declining market, the property might not appraise the the contact price and (3) you really don't have a deal since iit subject to the lender approval which might take 2 months to get and even then, they might … (0 comments)
deposits: Very common mistake with Rental Property sales
- 07/25/08 09:20 AM
Once of the common mistakes Buyer's agents make when selling income property, whether it is a duplex or 20 units, is forgetting to make sure an important clause is in the contract. That clause should say something like: "Seller agrees that they will not terminate, rent, evict or lease any units without written approval of the buyer" The idea being that during the 60 days or so that during the 60 day transaction, the seller does not change the rental or income makeup of the property. It is quite common for sellers to represent 100% occupancy, then during the transaction, fill … (1 comments)
deposits: Stay away from Class C low income property
- 06/04/08 12:22 PM
Unless you know what you are doing, I would suggest you don't sell Class C property, especially if low income or Ghetto property. These properties typically have great potential and too often look like good deal but they are not right for unsophisticated buyers. Here are some of the issues Higher turnover - Turnover can kill a good project. When a tenant leaves, you have turnover costs such as clean up, advertizing, vacant for some time, etc, etc. Also, many low income tenants live a very unstalble life, so turnover is more frequent Lower deposits: Typically low income tenants do not … (2 comments)
Guy Berry is a frequent expert witness in real estate litigation and an accomplished trainer in real estate law and contracts. In addition he has been licensed for 30 years as an agent and managed large offices, including Coldwell Banker and Century 21.
If you read my last blog about the buyer who breached the contract but got their deposit back because the contract included an unenforceable non-refundable deposit clause, let me give you an update. Some people are commenting on the bad buyer. My focus in on the agents and they were the cause of the problem. The agent wrote a contract that was unenforceable. If they didn't know the significance of writing an offer with no Liq. Damages, shame on them for not advising their buyer see an attorney. It was a $14 Million house. Do you think a $14 million buyer knows at … (1 comments)
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