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Who holds the earnest money when not using a realtor as in a developer wanting to buy our property: developer has offered to buy our property with a contract that allows the buyer to opt out if the city does not give development approval. The developer, so far, has not offered earnest money. We are still negotiating the purchase price and want to include a non refundable deposit as we would be taking our property off the market for nearly a year. We are looking for wording to use to request a deposit or earnest money whichever might be appropriate. We live in Minnesota and are not using a real estate agent.

Asked 4 months ago in Real Estate

Kirk’s answer: Be careful. I have handled many situations such as your with a sale to a developer. The earnest money is the easy part. It can be held by you in a savings account or by a title company is an escrow account.
Your biggest issue with a developer is the terms of the contract as to a number of things. Often the seller is happy about the $ but rushes the matter by signing only to tie the property up for a very long time with no ability to force the developer to close. You need to have contact terms that if the developer does not perform in certain ways by certain time the contract is void and you can go back to the market. This and other factors are important.
Then you have the sale price. In almost all cases where I represent sellers, they are ready to jump on a $50,000 to $75,000 per acre sale price where in reality their parcel may be worth much more depending on where it is at with utilities and city plans. I have handled sales of $150,000 and more per acre by knowing how to value the property and get the best developer capable of closing and doing so sooner than later. Since the market is hot you need good terms now because if the sale does not go through and the market goes south you could be sitting on the land for 15-20 years waiting for new home sales to get solid again. I have seen developers tie up a sellers land for years because they could not close and the owner could do nothing because they had bad contract terms.

Answered 4 months ago.

Do I have to move out of a rental if the owner is changing property management companies?: I am renting a townhome through a Property Management company. The owner of the townhome has given that property management company notice to end their contract together. I then received notice that my lease is not renewable. The owner and I have spoken, they would like to keep me as a tenant and I would rather not move. Unfortunately, by the lease agreement, I have to vacate by noon on 6/30 and the owner does not get possession back from the property management company immediately.

Is there a way around me having to literally move out?

Asked about 1 year ago in Real Estate

Kirk’s answer: The owner has control of the property. If they want to keep you as a tenant create a new lease that suits both your needs and stay.

Answered about 1 year ago.

Huge Hidden foundation issue can i or who can i go after?: I bought this 100 year old house 2 years ago. In the buyers contract it says the basement was finished 1 month before it was listed for sale. I had water in the basement and uncovered a wall that 2 specialists said would be to be replaced 20k+. It was covered in sheetrock and hidden. Nothing listed in the disclosure form, no checks for foundation issues. Do I have a case that I can go after the seller?

Asked about 1 year ago in Real Estate

Kirk’s answer: Yes if you can prove the defect in the house exists and was not disclosed. These matters take witnesses to prove up the claims. Sometimes proving it up is the biggest challenge.

Answered about 1 year ago.