SubTo - here is how to get the agreement

[Account Closed]

SubTo or "Subject To" is a short way of saying "taking over the seller's financing". Sounds pretty cool, no bank qualifying, little cash down and you own a property. Therre's a lot of fuss being made about SubTo in Phoenix, TX, OH, IN, GA and TN.

But, since usually there is no agent involved, how do you get the paperwork? What a lot of people don't realize is that purchase and sale agreements are 17 pages long to protect, guess what . . .  the agent and the broker. Shouldn't surprise you. But, I've written purchase and sale agreements by hand on yellow paper, by hand on white paper and on a three page legal document that explains everything the escrow company needs in order to close. 

The document, hand written or otherwise, is needed in order to make sure eveyone is on the same page when it comes to the transaction. From there, once you hand it over to escrow, they will take care of the rest. 

It's more important "to have a meeting of the minds" than it is to have a very long document. I've had subject to's go very smoothly with hand written purchase & sale agreements and I've been sued using very long and complex agreements. Imagine that! 

It's important to find a good closing attorney or title and escrow company to complete the deal, so that you have a third party to attest that the transaction is legit.