Home Buying in Bryan>Question Details

Lisa, Both Buyer and Seller in 96789

Contingent Contracts, what I should know if considering signing one...

Asked by Lisa, 96789 Tue Mar 11, 2008

I have my home for sale and had lots of traffic and 2 more potental buyers schedules to view in the next few weeks but nothing serioust. In the mean time we found a home in Bryan but we need to sell our home first. the seller for that home has had a hard time selling since it is FSBO so he asked us if we wanted to sign a Contingent Contract. There needs to be lots of updating and things fixed, "dated" and carpet replaced, paint etc...he was going to invest $$ into the home to get it sold but he is holding off since we would rather do this stuff on our own.

So my question is what should we know going into this sort of contract and when do we negotiate the price of the home. he offered for us to lease for while after we sell to get our finances straight so we can buy with a good rate. he is not only just a FSBO he has his real estate license and his wife is in real estate as well. if you can give me tips i should know. We "really love this home" and dont want to loose it ,any tips?

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5
It may not be listed on the MLS but these sellers are coming to the table with a lot more experience than you. I believe it would be in your best interest to get an attorney or a buyer broker. You need someone representing your interest, not protecting their own. There are so many different legal facets and considerations to your question that I will just touch the tip of the iceberg with my answer. The best tip you can take from my answer today is to get legal counsel before you sign anything.

Contingencies can take many shapes and forms that can either protect or harm either party. Contingencies always have some form of a consequence to one of the parties b/c contingencies place a higher risk in regards to the deal closing. Typically, there are no 'free' contingencies. Sales price, terms and contingencies are negotiated at the same time you negotiate the contract to purchase this home. There is no such thing as a 'contingent contract' however there are contracts with contingencies. Without knowing specifically what the contingencies are I can't offer any insight.

It sounds like you might be signing a lease? If you just sign a lease there is no price to negotiate other than rent. You are a tenant they are a landlord. What if you want to purchase later? Now you are talking lease purchase options. Are you paying for the option? Is the sales price locked? Do you want to assume responsibility for remodeling and repairs without knowing the marketability of title? Knowing what documents to file public records will also protect your 'interest' in the property.

Lastly, if for some reason you 'loose' this home please have faith it wasn't meant to be. It always feels this way to buyers (including myself) but the feelings aren't facts. Don't get yourself into a situation in which you are legally liable and or loose money because you were worried about loosing the perfect house and didn't counsel with an expert on your behalf first. You are risking loosing the home by not consulting with a local licensed real estate and/or legal expert. There is ALWAYS another perfect house even if at the moment it doesn't feel like it.


Good luck,
Susan Walker
1 vote Thank Flag Link Tue Mar 11, 2008
Dear Lisa -
My concern with your situation is that the seller is an agent and you have no representation. I wouldn't want anyone to go into one of the largest purchases of their lives without representation. If you need help please don't hesitate to call or email and I'll be glad to point you in the right direction.
979-764-2100
susan@century21bcs.com
Web Reference: http://susanhilton.com
0 votes Thank Flag Link Sat Mar 14, 2009
Hi Lisa! I have reviewed your dilemna and would like to help. I am a Realtor in Bryan/College Station. You can view my profile here on Trulia and go to my website at http://www.BCSHomePros.com. I have a great relationship with a local and reputable Real Estate attorney in town. If you give me call (979) 255-5195 or send me an email: summerscanlin@consolidated.net, I can explain how buyers working with me benefit from the representation of this real estate attorney.

Maybe we can all get together and discuss the issues and come up with a workable resolution for all parties involved and get you into the house you "really love." I look forward to hearing from you.

You can also go to http://www.ERA.com to view more about my company and our mission and values.
Web Reference: http://www.BCSHomePros.com
0 votes Thank Flag Link Sat Mar 14, 2009
Thanks, and FYI I'm a Texan (at heart and by birth) but loving it here in CO.

I'm assuming you are a FSBO too since you need to help finding an agent. If you do have a listing agent see if they will work on your behalf. Otherwise, ask for a referral from friends for a good agent. The seller doesn't have to pay the agent. You can. You can look for a real estate attorney either in the phone book, referral of a friend or call the closest Law School (University) and ask for a referral.

I always tell clients to protect your investment before you invest. I'd rather spend $500 in legal fees than loose $100,000 in a real estate transaction because I didn't understand the implications of what I was signing.

Susan Walker
0 votes Thank Flag Link Tue Mar 11, 2008
Thank You Susan Walker, for the reply. We may just be offered to sign on the basis that we sell our home. During this is negotiating the price involved? The FSBO/Realtor bought this home as an investment from a bankrupcy and hasnt been able to sell since it is "dated" and needs repairs. He was going to invest that money but we would rather do it ourselves and get a lower buying price. He is real nice and even offered for us to lease it for a while to have somewhere to live while we pay off the house. He has waited 4 weeks now with no contract in doing the updating and repairs, since we have had so many offers on our home but no bites yet. I have researched the value of sold propertiesin this neighborhood and he is asking a decent price "from what I can see".

Where would I find an attorney or a buyer broker?

I do live by your motto "if it fails it wasnt meant to be". Funny I got a responce from my favorite State (& birth place) that I have been trying to talk my husband into moving too.
0 votes Thank Flag Link Tue Mar 11, 2008
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