I need a purchase contract with a subject to current financing clause

[Collusion]

Does anybody have a purchase contract with the subject to existing financing clause in it? If so can you email it to me at brandon@equitybegone.com ?

[Duncan Pollock]

Not sure if this is what you're looking for, but in Ontario the following clauses could/would be used in an Agreement of Purchase and Sale:

1. Assumption of Existing Charge/Mortgage (No Approval)
The Buyer agrees to assume the existing _______________________Charge/Mortgage held by ______________________for approximately__________________________,
$__________________), bearing interest at the rate of _____% per annum, calculated semi-annually not in advance, repayable in blended monthly payments of ____________ ($____________), including both principal and interest, and due on the ________ day of _______________, 20 ____.
NOTE: The personal covenant of the original Chargor/Mortgagor would still apply following the assumption of the Charge/Mortgage by the Buyer.

2. Assumption of Existing Charge/Mortgage (Chargee/Mortgagee Approval) (Condition Precedent)
The Buyer agrees to assume the existing ________________________Charge/Mortgage held
by ________________________for approximately _________________, ($_____________), bearing interest at the rate of ______% per annum, calculated semi-annually not in advance, repayable in blended monthly payments of __________________ ($____________), including both principal and interest, and due on the ______day of _____________, 20 ____.
This Offer is conditional upon the Buyer obtaining the approval of the Chargee/Mortgagee to assume the existing Charge/Mortgage. Unless the Buyer gives notice in writing delivered to the Seller not later than _____ p.m. on the _____day of _________, 20____, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without interest or deduction. The Buyer hereby agrees to proceed immediately to make an application and provide such material as may be required by the Chargee/Mortgagee for approval of the Buyer as the Chargor/Mortgagor.
NOTE: This clause is a true Condition Precedent and neither the Seller nor the Buyer is entitled to waive it. However, it can be reworded on the lines of "... offer conditional for (say) 14 days upon buyer being approved ........ failing which offer becomes null and void, etc."

Duncan :SM092:

[Collusion]

Thank you but I am looking to structure a deal so that the owner who owns the property free and clear gets a new 1st mortgage and holds a second for part of his equity. This way, they can get $20,000 or more from the 1st to give to me and hold a note for their equity, including that amount. I can't seem to find a contract that has it in it that the seller has to get a new 1st.

[Duncan Pollock]

Huh?
You have me thoroughly puzzled.
Why, for instance, would someone who owns a property free and clear want to put a mortgage on it and how on earth can he/she hold a second?
If the objective is simply to give you $20,000, no problem and least of all is there any need to explain why he/she wants/needs to pay you. All that's required is for him/her to apply for the loan from just about any lender you care to name.
So what am I missing?
Are you in fact an intended mortgagee and simply want to get $20,000 more than the total amount of a mortgage (or maybe a first and a second mortgage) that you're prepared to put on the property? If so, you don't need a clause of any kind, do you? All that's necessary is a suitably worded mortgage document.
Or is it something like the other way round, with you being a buyer with a wish/need to get the owner to come up with the $20,000 that's to be paid to you, while you arrange a first for whatever amount is possible and find someone who'll provide the $20,000 and, in effect, thereby hold the second rather than the owner? In which case, again you don't need a clause but two mortgage documents that cover the situation.
Or what, what, what?
Sorry if I'm being dumb, but nothing's making sense the way you're describing it so far!

Duncan :confused:

[Collusion]

This is why you find don't wanters first before making such an offer. It does happen. The house I live in now is a 4,880 sq ft mansion that I bought ZERO DOWN, 100% seller financing and they paid the real estate commission, closing costs, and I even borrowed the money for the moving truck. I have found a place with a ton of don't wanters and I have a natural attraction towards these kinds of people for some reason, which is wonderful for me. I have 2 offers with the sub2 new financing obtained by the seller which very well may go through. I would like to be prepared with a contract but I just don't have any more time and I may have to go sign some papers monday so I am having my attorney draw them up.

I posted a contract that should do the trick http://www.equitybegone.com/board/index.php?topic=64.new#new

Sorry for the self promo there Dan.

[Duncan Pollock]

Well, you've obviously got it all figured out and I'm not seeing the need for any additional, special, or revised clause.
Gotta say you're pushing the envelope, though. However, with a sufficiently motivated seller, there's no good reason why you can't put everything together.
All that's really in the way, I suppose, is whether the property will appraise at a high enough figure for you to get it without, in effect, laying out one red cent of your own -- and the seller takes the risk that you'll pay him/her what you say in the promissory note you issue (just as the lender also needs to have sufficient faith in the two sides of the transaction).
Phew, there is more than one way to sell and buy a house, isn't there?!!

Best wishes.

Duncan