SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: microhoogle! who wrote (21238)6/3/2004 10:21:12 AM
From: TradeliteRead Replies (1) of 306849
 
<<Toll Brothers contract prohibits flipping a home. Buyer cannot sell for a period of 1 year after contract signing.>>

I think you're referring to a clause in most standard real estate contracts which says, in so many words, "this contract may not be assigned without the permission of the seller". A builder wouldn't allow this anyway. If the buyer suddenly doesn't want or can't qualify to buy the home he has under contract, the builder can find his own substitute buyer--and these days, can probably sell the house for more money than the original buyer agreed to pay.

The clause basically protects a seller from suddenly doing business with a third party he knows nothing about. It's included in almost every residential sales contract I've ever written.

A clever real estate investor, however, who's lucky enough to find a dumb seller willing to unload his house on the investor's nice-sounding terms, will always try to sneak in a clause allowing the contract to be assigned/flipped, or simply leave out any clauses prohibiting this.

(One more example of why investors shouldn't be licensed--pulling stuff like that on an innocent seller could be grounds for disciplinary action).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News