I received a copy of the Notes from the Options seminar and in section II “Types of Options” you mention using an option with a Deed in Escrow. My question is would the Deed held in Escrow be signed/executed by the seller and buyers just as I would find any other typical deed in the county land records (of course it would not be filed). If the option is not exercised, is the deed simply torn up or is there a clause in the Deed that nullifies the Deed if the Option is not exercised… And with IRA’s and HSA’s, would the escrow agent/company be Quest IRA, Inc…or any agreed upon third party escrow agent?
Yes, the deed would be signed, notarized and escrowed. The deed in escrow language outlines the procedure. Since Quest IRA, Inc. in this case is only a representative of your IRA we would not be an appropriate escrow agent. You would need to find an independent third party such as an attorney.
Follow Up Question:
Is the deed in escrow language found in the Option or in a separate document separate from the deed. And does the language govern the signed deed whether the deed is good(valid) or not based on the Option being exercised? And if not valid, does the signed deed get shredded by the escrow agent?
Follow Up Answer:
Ultimately it is up to you and your lawyer to decide how to handle it. On our options disk of forms, which are for example purposes only and are not to be confused with legal advice, I have the attached examples of additional paragraphs you might or might not want to include in your option agreement. The deed in escrow is paragraph 5.
I sense that you are seeking absolute answers on options. Unfortunately there are none. Options are simply too flexible. You have to structure the option for the way you want to use it.
If you are interested in purchasing the disk, please contact Ryan Kimura in our Dallas office. He can help you out.