General Questions

Is there a law that says you cannot give a car away if somebody buys a house? Think people-this is not a lottery. There is not a law that prohibits this practice. Do you need a HUD statement when you prepare the deed? It does not hurt to do this. If your closing agent is recommending it, then you should follow their lead (after all-they are paid for this).

Most people think that everything should be notarized-everything! Is this true?

Do you really need to notarize-affidavits, CYA letters, etc?

No. CYA letters do not need to be notarized, but you might want to record an Affidavit and Memorandum conce
ing Real Estate. Now this has to be notarized, so make sure this is signed. Think about it this way-you do not have to have anything that you don’t intend to record.

What if you have used a short contract and you’ve had three options in the last month. They sign it (and have it witnessed). Are you nervous? Would you feel better if it was notarized? Don’t worry. Your affidavit is how you’ll be protected. It really does not make a difference whether or not your option is notarized. It is really just as enforceable. Your affidavit is what is going to keep them from selling your house behind your back! This is key!

Do you worry about an auction?

I once had a house that the ARV on it was one and a half, and had an option on it for one million fifty, and I didn’t know if I would mess it up by mentioning it on auction. At the time the seller was still living in this house. I would have needed their full cooperation. If you find yourself in a situation like this, then your option is to try to sell on the open market and there are 2 reasons.

Number one-the seller would have to allow people to come on the property. This includes everyone-even the auctioneer.

Number two- All of the seller’s stuff is still in the house. This includes all of their personal stuff. Now how would that work? Think about it. Auctions are usually done on vacant houses (or houses that people aren’t really living in).
No if this is what you plan to do, your best bet is to discuss this with the seller openly and immediately. Being up front with the seller is your only chance of keeping all communication open regarding your auction.