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Escrow Docs for L/O - http://www.dealmakerscafe.com Forums

Original message

Andy-MA

"Escrow Docs for L/O" , Thu 14 Dec 17:06

I was reading over some of the L/O docs from Bronchicks course today and something confused me in the Escrow Agreement for Option...

In the doc it states the following:

"1. First Party hereby hands and delivers to said Escrow Agent a duly executed Bill of Sale and Warranty Deed to the following described Real Property, situate in the County of and State of , to-wit:

which Deed conveys said property to Second Party in fee simple.

Second party hereby hands and delivers to Escrow Agent a duly executed Quitclaim Deed to the same property."

First party being the seller...Second party being Me...

I don't understand why I would have to bring an executed Quitclaim Deed when the seller is already bringing the signed Warranty deed and Bill of sale.

Whats the use for the Quitclaim deed?

Thanks...

Andy-MA

"The greatest waste in all the world is living below our potential."

Harold B. Lee

Replies:

Joe Arlt

"Re(1):Escrow Docs for L/O" , Thu 14 Dec 17:47

Andy:

We use the same docs when I buy on land contract. I don't think my attorney has read the cash cow course so I'm heartened by the fact that both experts came up with the same process.

Here's the deal: The escrow agent situation is set up to protect both the buyer and seller when a property is being conveyed via creative financing, like when you buy on contract or do a L/O. In a traditional transaction, the buyer gets a new loan, so the seller no longer has any interest or liability in the property, so he gives you the deed straight away. That doesn't happen with the creative transaction. You get the deed only when you cash out the seller, and you don't want to have to go find him when that happens, which could be years from now. So the seller signs it at closing, it's kept in the escrow agent's file, and it's only released to you after you've performed.

From the seller's side, doing/recording this creative deal will likely create a cloud on the title, which he still owns. That's fine (and I demand it myself) as long as you don't default. However, sellers have figured out that if you do default, you're unlikely to sign a quitclaim deed right after you've been evicted. So they get you to sign it at closing, to be kept in the file and recorded only if you default. It all makes a lot of sense.

Joe Arlt
Super Wrapper

RobertNM

"thanks for the explaination!" , Thu 14 Dec 22:16:

Sometimes it is nice to hear things in very simple terms. For me at least. I am real excited about all the education recomended in this forum. Time to trim the fat! Thanks again. Your course sounds like great info!!!!!!!!
I will own it!

Robert in NM

[this message was edited by RobertNM on Thu 14 Dec 22:19]

RobertNM

"thanks for the explaination!" , Thu 14 Dec 22:14

Robert in NM

Andy-MA

"Re(2):Escrow Docs for L/O" , Thu 14 Dec 19:46

Thanks Joe, that makes perfect sense.

I kindof forgot that when I am a tenant/buyer in a L/O situation that I would have an equitable interest in the property...thus creating the need for the quitclaim deed. Thanks for the clarification.

By the way...does your course come with all the necessary forms or does it consist of just the cassettes?

Andy-MA

"The greatest waste in all the world is living below our potential."

Harold B. Lee

Dealmaker
Moderator

"Cassettes & ......." , Thu 14 Dec 20:52:

Cassettes and a lot of GREAT ideas that work. The documents are NOT that important as to the understanding of the process. Andy, you have the documents you need and now the understanding of them. Wrap Your Way to Wealth is Joe's system that he done 80 + deals with $14,000 a month Cashflow!

Check it out www.dealmakerscafe.com/wrapwealth.html

Dealmaker

[this message was edited by Dealmaker on Thu 14 Dec 20:53]

Andy-MA

"Re(1):Cassettes & ......." , Thu 14 Dec 22:46

Dealmaker,

Yea, I do have a basic understanding of the documents that I do have...though I do not think I have CFD or Wrap docs seeing that I only have Bill B's L/O course but....point very well taken that the process is the important thing and what I need to work on the most...

Thanks for the advice...I will purchase Joe's course as soon as I can...

Andy-MA

"The greatest waste in all the world is living below our potential."

Harold B. Lee

Dealmaker
Moderator

"Wrap, CFD, Subject-to Docs.." , Fri 15 Dec 07:09

Come in the Cash Cow course!

Dealmaker

Terry (Houston)

"Re(1):Cassettes & ......." , Thu 14 Dec 20:58

Very True.

I have two tapes to go and have enjoyed it so for. Lots of info.
I can see where you would have to listen several times to get it all.

...There is no chance no destiny no fate
that can circumvent or hinder or control
the firm resolve of a determined soul...

Ella Wheeler Wilcox

Terry (Houston)