Here's my original post asking about the numbers:
Numbers still aren't settled, but there are more terms that I thought protected my seller that changed the buyer's original offer. My terms:
- Earnest money shall be increased to $5,000 and delivered within 2 business days after acceptance.
- Earnest money shall become non-refundable upon expiration of the inspection period, except in the event of Seller default.
- The inspection period shall be 10 business days from the date of acceptance.
- The seller-carryback note shall be recourse to Buyer and not non-recourse.
- At closing, Buyer shall execute a promissory note in favor of Seller, secured by a deed of trust, with such documents to be prepared in connection with the closing by a Tennessee closing attorney or Tennessee title company selected by Seller.
- Seller’s deed of trust shall be recorded at closing to secure the note.
- The entire unpaid balance of the seller-carryback note shall be due and payable in full 60 months after closing.
- Buyer shall not assign this Contract without Seller’s prior written consent.
- Buyer shall not record a memorandum of this Contract without Seller’s prior written consent.
- Following closing, Buyer shall be solely responsible for all taxes, insurance, utilities, repairs, and maintenance related to the Property.
- Buyer shall maintain hazard insurance on the Property after closing, with Seller named as mortgagee, loss payee, or other protected lienholder status as required by the closing attorney or title company.
- Upon any default under the seller-financing documents, Seller shall have all standard enforcement remedies available under the note and deed of trust, including acceleration and foreclosure, and Buyer shall be responsible for reasonable attorney fees and enforcement costs to the extent permitted by law.
- Any resale, transfer, additional financing, lease-option, or further encumbrance of the Property, or any interest therein, without Seller’s prior written consent shall constitute a default and shall make the seller-carryback note immediately due and payable in full.
- Closing and preparation of the seller-financing documents shall be handled in Tennessee by a Tennessee closing attorney selected by Seller, and all seller-financing documents shall be subject to Seller’s review and approval prior to closing.
The buyer has come back with several "Not Acceptables":
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$1000 and not paid until after inspection.
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No seller recourse.
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Must be assignable without consent
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No restrictions on resale/transfer
Maybe I'm the unreasonable one, but I don't see why a seller who isn't in an extremely distressed position would take this risk. Even with #1, we have upcoming showings scheduled.
Follow up on "More seller-friendly seller-finance deal: Would you take it?"
byu/crowdsourced inrealestateinvesting
Posted by crowdsourced