Subject To Purchase ... How To Guide

[Sarah Jones]

I'm in Los Angeles, CA trying to get a subject to done. I was wondering what are all the forms I need the seller to sign. I know i have to get a title company to check the title before I close but what are all the form I need to seller to sign because California may have different class.

-Standard Purchase and Sales Agreement (I couldnt find any that is subject to for California)
-Deed (Is there a link where I can go to get a print out of an blank deed so I can have the seller transfer that to me) They are ready to walk out of the house becauase they are behind on their payments.
-CYA letter (I have this)

is there anything else I need them to sign to get this done?
I don't think I need an agent becuase I am just taking over their payments and there isn't enough money to pay for an agent on this deal.. can I just use a title company instead?

[Michael Lauther]

"Oh what a tangled web we weave when we first practice to deceive."

By the way yes Jon you of course are correct , Title companies do prepare the deed what I meant and should have been more specific they do not prepare most other types of legal documents although my title company has sent me samples of documents they have used from other investors in the past.

Sarah, your energy and drive and plain stubbornness in the face of criticism will probably net you success somewhere down the road, but honesty and your reputation are critical to long term success.

There is a reason many states require disclosure on a subject to transaction. Many unsophisticated property owners do not understand their liability and risk. Your seller apparently does understand and wants no part of it. You also say your seller is among a group you describe as friends. What will happen to your reputation when the seller feels cheated and you have to walk away from the property if everything falls apart and the lender calls the loan.

There is nothing illegal or immoral about subject to investments but care must be taken to protect all parties. Take the time you need to learn the process (as you are doing) but this deal is a non starter in my Humble opinion.