OfflinePlease can someone answer ASAP! I am doing dean's program for two months and ready to do my first assignment. I am working with a laywer and an agent who is waiting for me to to give her offers on homes we looked at last week. Just tweeking the contract. I am told that as soon as I tie up the property the contracts must go into attorney review. I know Dean said this can be done with no out of pocket expense. I have a 30 day exit clause in the addendum. However I don't understand why it needs to go into attorney review when I have 30 days to purchase it or assign it and I didn't expect that expense. Also, the realtor said it has to be inspected within ten days after review. Another expense I did no expect. I'm going to ask my attorney if we can add to the Addendum a clause that gets me off the hook for the inspection. Can anyone please elaborate on the attorney review and the inspection please?
Anyone doing assignment deals in NJ?
Posted on: Wed, 11/25/2009 - 16:42
I would like to know this as well as I live in Northern NJ and considering the market is saturated in terms of prices, I would like to know anyone who has assigned contracts.
Thanks.
Cherie and Magic,
Send a PM to Carol (username freeindeed). She is our NJ Assignment queen and I guarantee she'll be able to answer your question!
Vincent
"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53
Cherie,
When you put in an offer on a property through a Real Estate Agent in NJ you are subject to the Attorney review period. Don't let this scare you it is basically a 3 day period where you and the buyer have a right to have the contracts reviewed by your Attorney. Most of the time however neither the buyer or seller uses an Attorney and the contracts basically sit for three days in case someone changes their mind. You DO NOT have to pay an Attorney to review your contracts it is just provided as an option in case you want to.
I would put your offer in in spite of the Attorney review. Make sure you have exit strategies in your contract in case you cannot find an end buyer within the 30 day period.
Info on Attorney Review in NJ...
In New Jersey, after a "proposal" is accepted by the buyer and seller, the property moves into Attorney Review status. During this period of time, both the buyer and the seller can exit the deal with no harm to either.
While in Attorney review, the attorneys representing the respective buyer and seller will ensure that all terms are clearly understood and acceptable to both parties. It will usually last for 3 days.
Unlike many other states where the "proposal" is actually a sales contract and when all signatures are received, the deal is a legal and enforceable contract, the attorney review period in New Jersey was created to ensure that both the buyer and sellers´ interests where represented prior to a legally enforceable contract being created.
New Jersey is not a Title state (a state where a title company can execute the closing of a real estate contract), both the seller and the buyer will need to obtain attorneys to represent them during the deal. Attorney fees are typically around $1000 in New Jersey. They can be more depending on the amount of time and negotiation required by the attorney.
Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10
http://realwholesaling.com FREE wholesaling tips and resources!
To your success,
Carol Stinson
Hey Carol,
$100 or $1000?
We are keeping busy up here. Things have been a little crazy lately, and I've had work done on my car, so I haven't been out looking for properties in a while, but I'm bursting at the seams to start again!
Vincent and Pamela Jo
"He who is mighty has done great things for me...He has...exalted those of humble estate; he has filled the hungry with good things..." Matt. 1:49-53
If you can find an Attorney for $100 let me know and I will work him to death...lol!
Actually Attorney fees start at around $1000 and can go up to $2500 to do the Attorney review.
Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10
http://realwholesaling.com FREE wholesaling tips and resources!
To your success,
Carol Stinson
Cherie adding on to what Carol said, your inspection period is basically the period in which you have to find your buyer, depending on what other exit clauses you have given yourself in the contract. I found it very hard working the MLS for assignments in NJ, but that doesn't mean it isn't possible. A lot of realtors can just be a huge pain when it comes to assignments and proof of funds.
Here is what you want to do though. You want your inspection period to be as long as it can without compromising the deal. You do not pay for this inspection. You need to lock up a great deal and assign that contract and have your end buyer (investor) do the inspection and his due diligence. A few deals down the road you can do the inspection for your end buyers if you so choose (this sometimes gives new investors a little more comfort).
The only time I would ever agree to a 10 day inspection period is if it was an REO. Otherwise I at least ask for 14-21 days.
Good luck!
Larry
Philadelphia, PA
Check Out my blog at: http://www.theflipkid.com
"We succeed because we pay our dues to meet our goals, and in doing so we expand our personal genius"
Larry F.
The Flip Kid
I live in Alaska. and am doing REO's, in this area...
at one point I am splitting $ 300-k in half, with my person whom is doing this trans action for me....
once that one is done.
we are splitting $ 200-k .
not bad for just being at the right place at the right time.....
what's that tell you
skultkaman at gmail dot com
subject "REO" in ny
get me????
Alaskan Success,Inc