- Joined
- Aug 30, 2007
- Messages
- 200
QUOTE (DineenJJ @ Nov 28 2008, 06:11 PM) Could a student with a short credit history get an "Agreement for Sale?
Hi Dineen and Jim,
1) Anyone can structure an Agreement for sale, student or otherwise. Your credit history is not necessarily important UNLESS the seller want to verify your ability to pay.
2) Yes, Jim. A wrap or AFS can be used in many situations including renos and flips. You would be taking over the responsibility of the rents and expenses. These strategies were popular in the `70s and `80s in Alberta and have now fallen out of favour. There are both risks to the seller and buyer.
One of the most challenging parts if being able to negotiate an AFS (better known as wrap) with a willing seller for a longer period of time. Short periods are feasible, especially in the case of a reno deal.
The obvious risks include a seller not making payments to the bank and the property going into foreclosure or the seller fraudulently removing your caveat from title.
A buyer may also default forcing the seller to take back his property, in whatever condition it may be in... including any arrears in payments, taxes, etc. There are potential issues with setting up insurance too.
You need a decent lawyer, a willing seller and the knowledge to put together this kind of deal to make it successful. It is a good strategy that I have used in both Ontario and Alberta.
Thanks,
Hi Dineen and Jim,
1) Anyone can structure an Agreement for sale, student or otherwise. Your credit history is not necessarily important UNLESS the seller want to verify your ability to pay.
2) Yes, Jim. A wrap or AFS can be used in many situations including renos and flips. You would be taking over the responsibility of the rents and expenses. These strategies were popular in the `70s and `80s in Alberta and have now fallen out of favour. There are both risks to the seller and buyer.
One of the most challenging parts if being able to negotiate an AFS (better known as wrap) with a willing seller for a longer period of time. Short periods are feasible, especially in the case of a reno deal.
The obvious risks include a seller not making payments to the bank and the property going into foreclosure or the seller fraudulently removing your caveat from title.
A buyer may also default forcing the seller to take back his property, in whatever condition it may be in... including any arrears in payments, taxes, etc. There are potential issues with setting up insurance too.
You need a decent lawyer, a willing seller and the knowledge to put together this kind of deal to make it successful. It is a good strategy that I have used in both Ontario and Alberta.
Thanks,