📜 Custom Contracts That Protect Investors and Sellers Alike
📜 Custom Contracts That Protect Investors and Sellers Alike
In creative real estate deals, the contract isn’t just paperwork — it’s the shield that protects both sides. Generic templates may look convenient, but they rarely cover the risks and nuances of a Subject-To or seller-financed transaction.
That’s why custom contracts drafted by experienced attorneys are the difference between shaky promises and rock-solid protection.
🔑 Why Custom Contracts Matter
Creative transactions involve unique risks:
- The seller stays on the mortgage but gives up ownership.
- The buyer takes control of payments and property but doesn’t hold the original loan.
- The lender can still enforce the due-on-sale clause.
A one-size-fits-all contract rarely addresses all three perspectives. Without tailored terms, one mistake can unravel the deal.
🏛 What Attorneys Add to the Contract
A skilled Subject-To attorney builds in protections such as:
- Clear Payment Terms → when, how, and through what channel payments will be made.
- Risk Disclosures → ensuring the seller understands potential lender calls or credit impact.
- Contingency Clauses → covering what happens if the buyer stops paying.
- Wrap Provisions → cleanly structuring any seller-financed layers on top of the Subject-To loan.
- Exit Clauses → giving investors options if circumstances change.
💡 Real-World Example
An investor in Arizona closed a Subject-To deal using a basic purchase agreement downloaded online. When the seller later claimed they “didn’t know the loan stayed in their name,” the dispute escalated into court.
With a custom attorney-drafted contract, the seller would have acknowledged the terms upfront, and the investor’s position would have been fully protected.
🚀 Bottom Line
Custom contracts protect everyone involved — the investor, the seller, and even the long-term viability of the deal. Templates can’t see risk, but attorneys can.
👉 Work smarter, not riskier: Find Real Estate Attorneys — Legal Strength for Creative Deals
