Mistakes Agents make when selling Residential income property

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Education & Training with Real Estate Expert Witness Support

You wouldn't believe how common it is for a residential agent to think that they can sell a duplex, 4 plex, etc by the same techniques that they use when selling a house.

It starts with the contract.  If you use the residential form,  you leave out all the clauses that apply to income property; like the seller providing income and expense information,  that the seller can't repair,  rent or cancell any tenants without buyer approval, transfer of deposits,  contingency on approval of rentail agreements, etc, etc.  But,  if you use the income property contract,  because 2-4 unit properties also require all the mandated disclosures used for single family units,  the contract is also inadequate. Frankly,  the only way to resolve this is for you to prepare a standard disclosure for the Residential form,  adding all the good clauses that protect the buyer or seller.

More next time.

 

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Guy Berry

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Comments (3)

Shaun Wren
AGENTFORLIFE - Lakeland, FL

 Thanks for the tip.

Jun 02, 2008 01:35 PM
Bill Mitchell
Marc Joseph Realty & ForeclosureToursRUs.com - Fort Myers, FL

good blog!

Jun 02, 2008 01:36 PM
Jamie Flournoy
got agent? - New Market, MD
The Realtor on Your Side

Guy:

I think I mentioned that in your last class.  Here in CA, we should be using CAR's form Residential Income Property Purchase Agreement (RIPA) for any residential income property as it does provide the clauses that deal with deposits, limiting what the seller can and cannot do while in escrow, etc.

Jamie Flournoy, Broker, Assist-2-Sell, San Jose, CA

Jun 12, 2008 04:54 AM

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