The Best Damn Document

Posted August 21st, 2007 by Joe Kaiser

Any documentation that sheds light on the transaction and makes each party's intentions all the more clear is a good thing

Dear Rob,

It’s really strange to see how my business strategies are viewed by your office.

Everything instantly gets spun into something unfair or deceptive.

Everything.

And that’s why, I’m guessing, you’d take something like my “Best Damn Document” and decide its purpose is to steal away someone’s rights (see the second item, below).

kringle-presentation-16.jpg

It isn’t.


the purpose

As a real estate investor specializing in high risk foreclosure real estate, it’s vitally important to document all aspects of any transaction, and we do this through the methods described in my course, “37 Ways to Bulletproof Every Foreclosure Deal.”

We know that if we do not, sellers have the opportunity down the road to unwind the deal by saying they didn’t understand, thought it was a loan, or any of the 20 other issues contained in my seller acknowledgement form, the Best Damn Document.

Here’s that addendum, and I defy you to find anything unfair about it . . .

ADDENDUM TO AGREEMENT

On this ____ day of ________________, 2007, I, __________ (SELLER) have agreed in writing to sell the property known as _________________ County Parcel No. ________________, (THE PROPERTY) to _____________ (BUYER) and or assigns, according to the terms and conditions contained in the Purchase and Sale Agreement (The Agreement) of even date, a copy of which is attached hereto. I further state as follows:

________ 1. OWNERSHIP OF THE PROPERTY: I am the owner of The Property (or I have an equitable interest in The Property) and am able to contract for its sale.

________ 2. ACCEPTANCE: I have reviewed the terms and conditions contained in The Agreement and have accepted Buyer’s offer to purchase The Property.

________ 3. GOOD AND VALUABLE CONSIDERATION: I have received good and valuable consideration in signing The Agreement, and I acknowledge both the receipt and the sufficiency of the consideration.

________ 4. IN MY BEST INTEREST: I am satisfied with The Agreement and have agreed to sell The Property because it is in my best interest to do so.

________ 5. FULLY INFORMED AND NOT CONFUSED: I have signed The Agreement being fully informed and with sufficient understanding of all terms and conditions contained therein. I am not confused about any aspect of The Agreement.

________ 6. SATISFIED WITH THE SALES PRICE: I understand I may be selling The Property for less than market value but have chosen to do so because circumstances dictate that an immediate sale, even at a discounted price, is in my best interest. I am satisfied with the sales price I have negotiated.

________ 7. SALE IS FINAL: I understand by signing The Agreement, I have agreed to sell The Property to Buyer and am now bound by the terms and conditions described in The Agreement. I further understand that I cannot “change my mind” or cancel the contract at some later date, nor can I continue to market The Property to any other buyer.

________ 8. CONTINGENCIES MAY EXIST: I understand the sale may be contingent upon Buyer’s inspection and approval of certain items described in The Agreement. I further understand that if Buyer does not approve of these items, Buyer may cancel The Agreement and if cancelled, I must return Buyer’s earnest money in full.

________ 9. NOT A LOAN: I understand The Agreement I have signed is for the outright sale of The Property and is not intended to be a loan of any kind.

________ 10. AGREEMENT MAY BE ASSIGNED: I understand Buyer may assign The Agreement to another party and I may be closing the sale with someone other than Buyer.

________ 11. NO ESCROW: I understand Buyer may choose to “close” this transaction without the use of an escrow company and may record the conveyance documents himself.

________ 12. CLOSING DOCUMENTS: I understand there will be additional closing documents to sign and upon receipt, agree to sign and deliver the closing documents either into Escrow or directly to Buyer, as Buyer may direct, in a timely manner.

________ 13. COPIES OF THE PAPERWORK: I understand that copies of the paperwork I’ve signed will be provided to me in a timely manner and I acknowledge that circumstances dictate that copies may not be immediately made available to me.

_______ 14. BUYER ENTITLED TO MAKE A PROFIT: I understand Buyer may resell The Property and may realize a profit in doing so. I agree Buyer is entitled to any profit that may ultimately result in the subsequent resale of The Property.

_______ 15. LEGAL COUNSEL ADVISED: I acknowledge Buyer has advised me to seek independent legal counsel to review The Agreement.

_______ 16. FINANCIAL REVIEW ADVISED: I acknowledge Buyer has advised me to seek an independent financial advisor to review The Agreement.

_______ 17. FAIRLY NEGOTIATED: I understand Buyer has negotiated on his own behalf and likewise, I have negotiated on mine. I acknowledge The Agreement has been negotiated fairly and Buyer has not taken advantage of me or my current situation.

_______ 18. NO PRECLUDING AILMENTS: I have no physical, mental or emotional ailments that preclude me from signing The Agreement.

_______ 19. NOT UNDER THE INFLUENCE: I am not now under the influence of alcohol or any other mind-altering substance, nor am I taking medication that would cloud my judgment or make me unable to think clearly.

_______ 20. NO OTHER PROMISES: I have not been promised anything other than what is described in The Agreement. There are no unresolved issues, no “side agreements,” nor are there other terms not disclosed in The Agreement.

_______ 21. NOT UNDER DURESS: I am not under duress and have signed The Agreement of my own free will, without any undue financial pressure. Buyer has in no way pressured me into signing The Agreement.

_______ 22. FULLY SATISFIED WITH AGREEMENT: I am fully satisfied with all terms and conditions contained in The Agreement.

Dated this _____ day of ______________________, 2007

√ _______________________________
SELLER

√ _______________________________
BUYER


what it’s not

Former AAG Cheryl Kringle, in her settlement proposal presentation, has apparently deemed it a document designed to unfairly disjoin the seller from his rights.

Nonsense.

Here’s her demand . . .

Not to engage in any effort to get property owners to waive or disclaim, without the advice of independent counsel, any legal rights or defenses that they may otherwise have. — Cheryl Kringle, former AAG
5/9/2007 Settlement Proposal

The purpose of the Best Damn Document is to document what took place so that any seller later claiming he or she was treated unfairly will have the burden of explaining documentation that clearly establishes otherwise.

There’s nothing sinister about it.

Any documentation that sheds light on the transaction and makes each party’s intentions all the more clear is a good thing.

The fact it serves to prevent sellers from making untruthful claims about the transaction is a good thing as well.


always

Sellers are always free to decide for themselves if they want “independent counsel” to review our documentation, and we always advise them they should.

Always.

They rarely do.

Respectfully,

Joe Kaiser


One Response to: “The Best Damn Document”

  1. DaveD responds:
    Posted: August 23rd, 2007 at 6:42 am

    As usual, the AAG is just as befuddled over the purpose of the BDD as with every other aspect of your case.

    Rather than being a waiver of rights, the BDD is a tool for getting everyones cards on the table. It overturns ALL of the rocks and clears the air so all parties can proceed. It is one of the finest examples of disclosure I’ve ever seen. There can be no evidence of deceit, wrongdoing, or fraud occuring when the seller initials each item. All in plain, English, I might add. Easily understood by anyone… except an attorney, of course.

    Getting all twenty-two cards on the table is a good thing!

    Indeed, the twenty-two items are not negotiable. If your seller refuses to sign off on a single item, you don’t close, and the seller doesn’t get his money, regardless of how “nominal” the amount.

    Really, if he doesn’t like #4 “In my best interest” what is the point of going ahead with the deal? A scammer, I suppose, wouldn’t be bothered. But my guess is the rest of us would walk. Twenty-one out of twenty-two ain’t bad, to paraphase the old song, but it ain’t good ’nuff either.


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