Hi! It’s Lou Brown. With another of my 101 ways for real estate investors like you to close more deals, accelerate your cash flows, and make more money. Yeah Baby! Alright! So, today’s tip is number 13. “Have a contract that states disputes should be settled with mediation, then binding arbitration”. Alright. So over the years, I’ve developed an amazing agreement and it’s what we call our Standard Purchase and Sale Agreement. Now this standard purchase and sale agreement is amazing because it takes care of profits. So it’s got profit centers in there. It negotiates a lot of your transactions for you without each point having to be negotiated by you. And it’s also got a lot of protection in there too. So the purchase and sale agreement, it’s three pages long. And it actually goes through, one of the things it does is collect up all the money together on one page so you don’t have to hunt through the document to actually find out what the money looks like.
And another thing it does is it actually puts you in a position to deal with issues before they occur. So we’ve got a clause in here. Number 11, it’s called “Default and Attorney’s Fees”. Now, if the buyer defaults on this agreement, all deposits will be retained by the seller as full settlement of any claim whereupon buyer and seller will be relieved of all obligations under this agreement. If the seller defaults under this agreement, the buyer may seek specific performance or elect to receive the return of the buyer’s binder deposits without thereby waiving any action for damages resulting from the seller’s breach. If the seller refuses to sell for any reason other than those outlined herein, the seller and buyer herewith agree to resolve this dispute through binding arbitration with all costs of such arbitration being borne by the losing party.
So what we’re doing is, and there are some other words in here, but what’s important is that we’re solving a problem before it occurs. Because if they sell or refuse to sell to you for any reason, you may have already spent a bunch of money on getting ready for that closing. You may have ordered a title search. You may have paid for a title binder. You may have done inspections on the property, you may have spent some money getting utilities turned on. There are things that you are faced with when you’re trying to close a transaction. So you got to protect yourself. If they refuse to close, now you’ve got an out. And by the way, they’re going to initial that particular clause to make sure that they have agreed to mediation and binding arbitration.
I hope you enjoy this tip and you will use it. This will make a difference in your life. I can promise you. I’ve used it myself. I’d love to share more of my profitable free tips with you. How can you get more? Well, depending on where you see seeing this. I want you to like it. Love it. Comment on it. And subscribe. Share this with your network too. Thank you for watching. And I hope to see you soon. Yeah, baby!
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