Permission to Disclose is often found in a standard real estate contract under the section titled “Permission.” It will say something like: Buyer and Seller grant permission [to Brokers] to advise the public of this sale upon execution of this Contract, and Brokers may disclose price and terms herein after close of escrow. Being able to disclose this type of information is advantageous to Brokers. They will be able to advertise a sale, once finished, and reveal selling price and terms. This information may or may not also be entered into any private data base they develop on market conditions and also be useful in obtaining back-up contracts.
This information can be disclosed once a contract is “executed.” This can mean one of two things; the contract has gained the last signature needed or the sale is closed. In real estate “executed” is usually meant to be the first. Buyers and sellers may not want this information disclosed before closing. What is the meaning of this? If a Broker is representing the seller and you make an offer on the property, the broker can disclose your offer price to a buyer he is also representing. The other buyer will then have the chance to make a better offer; this may, or may not, cut you out of the deal.
To prevent this from happening you might consider including offer-confidentiality language in your contract. This section would simply state that the price, and terms, of the buyer’s offer cannot be disclosed by the broker, seller, or associates of either party, at any time, starting from the moment the offer is received by the broker or seller, except as required by recordation.
Tuesday, January 19, 2010
Wednesday, January 13, 2010
Right of First Refusal
A right of first refusal (RFR) in a real estate contract is typically a device that gives to a specific party the right to be the first allowed to purchase property if it’s offered for sale. The holder has the right to refuse to buy the property. An RFR is a future right, and it is contingent upon the property being listed on the market. The terms of an RFR can range from vague to very specific and confusing.
One type of RFR is an option to buy the property before it is sold to another buyer. At the time the RFR is negotiated the seller and holder may or may not bind themselves to a specific price or other terms. Also, the option may or may not end at a specific date in the future. The seller is not obligated to sell if a price and other terms were not been established at the time of the RFR’s negotiation. A variation is an agreement to sell and buy at a price based on one or more appraisals when the RFR is invoked.
Another type of RFR is the right of the holder to match any offer the seller has, therefore preempting its sale to another party.
A related idea is Right of First Offer (ROFO). This idea requires that the seller take part in “good-faith” bargaining with the ROFO holder before negotiating a sale with other parties. Seldom does the ROFO bind the parties to come to an agreement but this does happen. An ROFO simply aids in getting the buyer in front of the seller; nothing is guaranteed after that.
With a motive of self-interest, an RFR can give certainty to both the buyer and holder. Certainty can come in the form of future time, price, and other arrangements. If you are considering an RFR or ROFO agreement please contact a lawyer for assistance. Drafting languages and terms can be very simple or complicated. Making sure that all parties understand how these agreements work is a top priority.
One type of RFR is an option to buy the property before it is sold to another buyer. At the time the RFR is negotiated the seller and holder may or may not bind themselves to a specific price or other terms. Also, the option may or may not end at a specific date in the future. The seller is not obligated to sell if a price and other terms were not been established at the time of the RFR’s negotiation. A variation is an agreement to sell and buy at a price based on one or more appraisals when the RFR is invoked.
Another type of RFR is the right of the holder to match any offer the seller has, therefore preempting its sale to another party.
A related idea is Right of First Offer (ROFO). This idea requires that the seller take part in “good-faith” bargaining with the ROFO holder before negotiating a sale with other parties. Seldom does the ROFO bind the parties to come to an agreement but this does happen. An ROFO simply aids in getting the buyer in front of the seller; nothing is guaranteed after that.
With a motive of self-interest, an RFR can give certainty to both the buyer and holder. Certainty can come in the form of future time, price, and other arrangements. If you are considering an RFR or ROFO agreement please contact a lawyer for assistance. Drafting languages and terms can be very simple or complicated. Making sure that all parties understand how these agreements work is a top priority.
Friday, January 8, 2010
Waterfowl Habitat Tips
It is easy to purchase a property with the intentions of maintaining it; however, the best plans can easily be forgotten. Fall mowing and disking are effective ways to maintain a property for waterfowl. Waterfowl habitat management can be completed during duck season as well as the next spring or summer.
Neglected “duck holes” are common problems to properties. Broad leaf plants and dense stands of vegetation lead waterfowl away. Grassy areas full of plants such as wild millet, sprangletop, and panic grasses will provide natural food when flooded. “Spot Mow” areas dominated by broad leaf plants and leave grassy areas. To determine whether a grassy area is beneficial, look for golden-brown vegetation. “Spot Mowing” will allow you to relieve the property of the dense vegetation while leaving 50%-70% of the area that will be flooded. Fall mowing also attracts a litter layer; when flooded, it will attract aquatic invertebrates, another important food source for ducks.
Fall disking is also used to promote natural grasses. It is important to only disk approximately 30% of the area. This insures that natural food sources and cover are left for the waterfowl to use. Disking in the fall sets up the impoundment for the following spring and summer. Flooding in the impoundment is an important step to maintaining vegetation. Maintaining water levels in the disked impoundment through the winter and into the spring will help control unwanted plants. Slowly draining during the spring and summer will drive natural “moist soil” plants to germinate on the mud flats. These plants are an excellent, free food source for waterfowl.
Fall mowing and disking can be used together or separately to maintain a property. The key to waterfowl habitat management is to try different strategies. Take notes on what works for your property. For more information on waterfowl and habitat maintenance please visit the South Carolina Waterfowl Association at http://www.scwa.org/main_mallards.html.
Neglected “duck holes” are common problems to properties. Broad leaf plants and dense stands of vegetation lead waterfowl away. Grassy areas full of plants such as wild millet, sprangletop, and panic grasses will provide natural food when flooded. “Spot Mow” areas dominated by broad leaf plants and leave grassy areas. To determine whether a grassy area is beneficial, look for golden-brown vegetation. “Spot Mowing” will allow you to relieve the property of the dense vegetation while leaving 50%-70% of the area that will be flooded. Fall mowing also attracts a litter layer; when flooded, it will attract aquatic invertebrates, another important food source for ducks.
Fall disking is also used to promote natural grasses. It is important to only disk approximately 30% of the area. This insures that natural food sources and cover are left for the waterfowl to use. Disking in the fall sets up the impoundment for the following spring and summer. Flooding in the impoundment is an important step to maintaining vegetation. Maintaining water levels in the disked impoundment through the winter and into the spring will help control unwanted plants. Slowly draining during the spring and summer will drive natural “moist soil” plants to germinate on the mud flats. These plants are an excellent, free food source for waterfowl.
Fall mowing and disking can be used together or separately to maintain a property. The key to waterfowl habitat management is to try different strategies. Take notes on what works for your property. For more information on waterfowl and habitat maintenance please visit the South Carolina Waterfowl Association at http://www.scwa.org/main_mallards.html.
Subscribe to:
Posts (Atom)
