Let it not be said "every sale is the same" (Part 1)
In California, real estate purchase contracts are sometimes assigned. Generally this is done well before signing escrow documents is underway.
Imagine my surprise as I was enroute to support the Seller as they sign closing documents when the Buyer's agent told me they would be adding a co-buyer.
At this point in the transaction, disclosures had been made and accepted, contingencies had been released and funding was due in the near term.
I'm not an attorney, but I do know some contract formats have specific provisions that prevent assignment. Our contract had no such language making an assignment possible. That said, we still consulted a real estate attorney to make sure our steps were done within legal constraints.
Calls were required! Since every real estate sale is different, each must be evaluated carefully and calmly.
- One was to the Escrow Officer to both alert them and to confirm what impact this might have on the seller signing - within the hour.
- One was to the Brokerage to appraise them of the change.
- One was of course made to the client since they would be participants in the contract change.
As it turned out, the sellers were able to sign the deed as scheduled, but that didn't mean we were done. The new buyer joining the transaction so late in the process meant more documentation was required.
Among this documentation was an addendum and another round of disclosure signatures. The new buyer may have been witness to some of the due dilligence investigation along the way - or they may not have. In either case, they had to receive, review and acknowledge all disclosures, inspections and information about the property. As an aside, failure to disclose is a great BIG no-no. If in doubt, disclose!
This is all of the story I'm going to share for now, you'll have to check back for an update sometime before the end of December 2013.
Every home sale is different and that is the moral of this story.
As always, let's foresee the possibilities . . . and get results!
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