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WORFER5 · Feb 13, 2006, 03:28 PM

We Are Selling Our Home Which Has Two Separate Properties. The People Who Want To Buy Both Properties Put In A Contract. Now They Wish To Divide To Two Contracts One For Each Property. Please Note That Both Properties Are Separately Addressed And Separately Deeded. If We Agree To This Are They Still Compelled To Buy Both Properties. One Property Has A House The Other A Vacant Lot. We Like To Know Can We Hold Them To Buy Both Or Can They Buy One And We Are Stuck With The Other. What Should We Do To Make Sure That They Have To Buy Both Properties. We Are Moving In April. The properties are in Baltimore, Maryland

Worfer5

CaptainForest · Feb 13, 2006, 03:35 PM

If they sign both contracts, then they are legally bound to buy both properties.

Have them sign both contracts FIRST, before you sign them. That way, you protect yourself of them signing only one and running off.

Of course, there are other ways to deal with it as well, but the simplest way is to all gather and have them sign them both first.

LisaB4657 · Feb 13, 2006, 04:05 PM

I agree with Captain Forest's answer but I would add one thing. In each contract, make sure you add a paragraph stating that the seller's obligation to complete this sale is conditioned on the completion of the sale described in the other contract, and that the buyers' failure to close on one of the properties will be a default under both contracts. This way they can't close on one property without closing on the other property.

CaptainForest · Feb 13, 2006, 04:14 PM

Originally Posted by LisaB4657

I agree with Captain Forest's answer but I would add one thing. In each contract, make sure you add a paragraph stating that the seller's obligation to complete this sale is conditioned on the completion of the sale described in the other contract, and that the buyers' failure to close on one of the properties will be a default under both contracts. This way they can't close on one property without closing on the other property.

I wish to add that I agree with LisaB4657. That little paragraph can come in quite handy. Good idea!

Fr_Chuck · Feb 13, 2006, 06:37 PM

To me a BIG RED FLAG jumps up as to why they wish to separate it into two separate contracts. So I would want a clear answer to why first.

You don't of course have to agree, you can merely say no, it has to be on one contract,

But as stated, you need a legal way to not accept the closing on the house, unless the lot closes also. They may be having money issues buying both properties and are trying to only buy the house right now, or use it latter to try and force your price down on the lot as a tool, close on the house, delay the property and then ask for a much lower price.

Personally unless they can offer a logical reason, and accept the terms that both must close I just personally would have a real issue separating them if I wanted to sell them together.

CaptainForest · Feb 14, 2006, 11:40 AM

Fr Chuck, I assumed that they wanted to turn around and sell one of the properties (vacant lot) to someone else. And this way, having 2 separate contracts is a lot easier because they can value one property higher than the other. They pay the same for 2, just divide it differently.

WORFER5 · Feb 14, 2006, 04:56 PM

I heard from the buyers today. I told them that if they want two contracts they need to have all the papers signed and notarized and after our attorney agrees we will sign. I think they will be back with one contract

Fr_Chuck · Feb 15, 2006, 09:30 AM

Capt, at least in some of the US states where I have bought and sold property, the contract you buy them on does not effect how they can be sold latter, ( unless you are needing to buy and sell one of them first to have money to buy the second) (that would be assuming you already have someone that would buy the one piece from you at a higher price to make a profit)

Even if on one contract if the physical deeds are not together but on separate deeds then there would no problem, unless you tied both deeds up on the same mortgage. Of course the buyers may not have understood that and wanted it two separate contracts.

At closing there will still have to be two complete sets of papers to sign over since there are two deeds to deal with.