All Forum Posts by: Eikichi Takuya
Eikichi Takuya has started 1 posts and replied 3 times.
Post: Why not just write an option contract instead of using escape clauses?
- Northridge, CA
- Posts 3
- Votes 0
I appreciate everyone's input. The person that advised me with regards to the option contract was a friend, and did not specialize in real estate law. The reason he gave for advising me as such was that he thought it was best to be as honest and forthcoming as possible with the sellers. I will set up an appointment with an attorney who specializes in RE in a couple weeks. Any suggestions for one in Los Angeles? Thanks again!
Post: Why not just write an option contract instead of using escape clauses?
- Northridge, CA
- Posts 3
- Votes 0
Thank you both for your responses. I am familiar with the idea of consideration and am not too concerned about it. What I am more concerned about is how courts would legally view my activities should I ever be sued. What I was getting at was that even though there are people writing purchase contracts with assignment clauses, there are no doubt those that have no intention of buying the property and are, in effect, actually writing option contracts to purchase the property. This is where it gets a little bit grey for me. Investors writing purchase contracts with escape clauses whose true intentions are to, in effect, create an option to purchase the property.
Any recommendations for a competent and reasonably priced RE attorney in Los Angeles? I've been intending to get started doing wholesaling for a while now, but it's really important that I do it right the first time without any major oversights. I can't stand the 9-5, 3 hour drive in traffic anymore and am ready to make the transition. Thanks again!
Post: Why not just write an option contract instead of using escape clauses?
- Northridge, CA
- Posts 3
- Votes 0
I spoke with a lawyer in regards to the idea of "wholesaling" properties and his take was to just write an option contract outright rather than create what is essentially an option contract by including an escape clause. Any thoughts on the legal implications of this? Specificallly in regards to how the courts view such "purchase contracts" which are in essence functioning as an option to purchase. Does anybody know of cases where courts have found such lines as "contingent upon partner's approval" or "contingent upon securing financing" to be weasel clauses?
If anyone can provide some insight into this it would be greatly appreciated. At this point I'm deciding which path to take; outright option contract, or purchase contract with an escape clause. Thanks in advance!