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Hi guys im new here and i just wanted to say this forum has an amazing wealth of knowledge and im looking forward to being a part of the community. That being said, For the last two weeks ive been immersing myself and researching property investment ( mainly property sourcing/ deal packaging ) here is my question:
Lets say ive secured a seller under contract (option agreement) and i have found a buyer. Do i need to get the buyer under an assignment agreement and NDA?Also, the main part of this that has had me running in circles on the internet looking for an answer is; Where do the solicitors come into this in regards to me. Do i have to deal with the Solicitors to get paid? and do i have to pay for the solicitors or does the seller and buyer cover the costs? sorry if this is a stupid question, bare in mind that ive only been studying this for 2 weeks and i am completely new to this entire concept.Thanks in advanced....Jack
Hi Jack and welcome.I would recommend the following:1. Take an upfront "commitment fee" for £500.00 so that your client is committed to the deal. This is non-refundable or 50% non-refundable as you will incur costs, even if they do not go ahead with the deal.2. The client agrees that you are paid the balance of your fee on the day of completion of the sale and signs a basic agreement that stipulates the nature of your commercial relationship. You may want legal assistance in drawing this up and it would cost somewhere around £500.00 to £750.00 to ask a solicitor to do this for you.3. You lodge a copy of the agreement with the buyer's solicitor, advising that you should be paid the balance of your fee as a disbursement on completion of the purchase.I wouldn't bother with an NDA. They are generally not worth the paper they are written on and are virtually impossible to enforce. There is an element of trust involved, but if you get a commitment fee upfront, the buyer is less likely to go behind your back, and, if they do, that is just a cost of doing business.This may also assist you:FREE deal sourcing courseHope that helps for starters?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Thats helped me alot! Thanks for your help Vanessa