Stop Squirrely Sellers from Backing Out with this Simple 1-Pager [Free Download]
Dealmakers: Have you ever had a sweet deal under contract to buy, only to have the seller suddenly decide for whatever reason not play ball with you anymore?
What can you do?!
At first, you're their new best friend…
They ‘see the light', and they're more than happy to let you relieve them of their distressed property/situation for the reasonable price & terms you proposed and they warmly agreed to.
You're heroically saving them from the ‘bad house' situation they've somehow found themselves in.
Then, things suddenly go sideways…
A few days later, they suddenly want out and for no good reason.
- Maybe someone else came in behind you and made a slightly higher offer than yours. It happens – often shysters or noobs who don't know their numbers and just want a deal but can't really do it.
- Maybe they decide afterward that your car looked a little too nice, and you can probably do better than the contract price/terms they already agreed to.
- Or, maybe they just don't like the way your hair looks or your politics on Facebook or that weird southern/northern accent you've got suddenly turns them off.
Whatever the reason, things can suddenly get weird and go sideways. It doesn't happen often, but when a seller gets squirrelly and tries to cancel you for no good reason, what's an investor gonna do?!
Enter: The Affidavit of Equitable Interest ⇊
For the record, let me be clear…
I'm NOT into always holding sellers ‘hostage' to our agreements.
Life or circumstances really change sometimes. And when they do, maybe things are worth reconsidering sometimes.
If they've got a legit reason for having second thoughts, and are willing to have a thoughtful conversation with me to talk about them, then I'm always willing to listen, understand, and even back politely out of the contract we both previously agreed to.
Sure, I'm sad for a minute about the deal lost, but I understand.
But ya know, sometimes people just get WEIRD.
And for those now-and-then times when a seller suddenly gets squirrelly on you, and tries to cancel you for no good reason…
Well, that's exactly when you'll be super grateful that you've got this handy dandy “Affidavit of Equitable Interest” in your Awesome bag of tricks. ッ
And yes, I've got one for you. But first…
Here's a quick story about using it…
Video Transcription:
So you've got this sweet real estate deal under contract. Great payday on the other side of it… but the seller seems kind of squirrelly. You think maybe they might back out? What do you do? Can you do anything?
I think there is something than you can do. Let's talk about that.
So what the heck am I talking about?
I'm talking about a simple one page document called an Affidavit of Equitable Interest and you absolutely need it in your tool chest as a savvy real estate investor and I'll tell you why.
Let me tell you a story to explain it…
Over a decade ago I had a deal, a sweet wholesale deal under contract at 2215 Hunter Avenue. I remember it well and man I knew this was like in the early days of my wholesaling career. I was going to make a sweet $10,000 wholesaling this. I already had the buyer in mind. I knew I was going to collect that payday sooner than later.
I signed the contract with the seller. He was eager to sell it to me… but then a couple of days later he called me up and said, hey Mr. JP, I don't think… I'm thinking… maybe I'm not doing this deal with you. And I said, really? I took the time to sit with them and ask them questions and said, what's going on?
Come to find out. Another investor had come behind me and made him another offer with a few thousand dollars more. He was going to scalp the deal from me… is that the right term? Scalp the deal? Poach the deal from me. That's how you say that.
I was like, hey, I'm sorry. It's cool that somebody offered you more money but we have a deal. You sign the contract and I'm going to follow through and do the deal. We're just about to close here in just a few days.
And he said blah blah blah. I said no, I'm sorry but we have an agreement. He said no, I'm not going to do it. And that's when I said, Whoa, wait a minute, we have signed this contract and you have an obligation to follow the terms of the agreement that you signed and dated. He said well you can say that but I'm not going to do it.
That's when I pulled my hand out of my bag of tricks, proverbiably speaking, and whipped out the Affidavit of Equitable Interest. Now this is not a document that you should use on every single deal that you ever do. It would just be a big hassle if you did.
But when you have a deal like the one I just described where the seller decides for whatever reason he's just not going to do this deal with you. Maybe he doesn't like the way you look, maybe he's offended by your hair or something like that or he gets a better deal. Somebody comes behind you and tries to poach the deal from you. Whatever the reason. That ain't cool. And you can use the Affidavit of Equitable Interest to basically let the world know via public notice that you have an agreement to purchase the property from the homeowner.
Now, the way that you let the world know is by recording this document. And that means, of course, in most counties, you're going to have to sign it in front of a notary public. Most banks have access to one right on hand… you can just walk into your local bank and say, hey, do you have a notary somebody with a notary public license… or whatever it's called certification? I guess… for $10 or $15, they'll notarize anything as long as it's formatted properly. They don't even have to understand it. That's typically how I do it.
So then you take that notarized document down to your county recorder or whatever it's called in your county, and you record it against the property.
What does that do?
Not only does it let the world know that you have an agreement to purchase this property, but it clouds the title.
So what that means is the guy that this gentleman was going to sell to instead of me couldn't get title insurance. He goes to a title company or a closing attorney to close the deal. They're going to do a title search, they're going to see this thing recorded against the property, and a title insurance company is not going to insure that.
So it basically holds clean title hostage. Now, this is something that if you're this kind of person, you could use this in a nefarious way. You could go and randomly cloud other people's title against their will. And I don't recommend I would never do that. If you do that, you're a jerk. You're an idiot. Don't do that. You're evil.
But when you use it to protect your equitable interest in a viable deal from a sketchy seller or somebody who decides they don't like the way you look and they're not going to do the deal with you, then that's a completely viable option. So I've not had to do this very often. There's only that one deal I can think of that it actually saved the deal. I've done a handful of other times when I thought maybe the seller's kind of looking at me sideways.
So again, it's just something you keep in your bag of tricks. You use it when it makes sense to use it, don't abuse it, obviously.
And the way that you're going to get it for free. This is the same one I use is if you're watching this video on our blog post, then just scroll on down below the video and you'll see simple instructions. And just follow the instructions and you can download it free of charge, no strings attached. You don't even have to opt in for it.
Basically, all I'm doing is trying to use it as an ethical bribe to get you to like us on Facebook. So scroll down on the blog post, give us a little like on Facebook because that's cool. Tells the algorithms and Facebook that we're nice and friendly and that people like us and then for the small cost of doing that, you get this free of charge and you can use it to your heart's content as long as you use it for good, not for bad, right? Don't go to the dark side.
If you're watching this on YouTube Then you obviously aren't on the blog. So just scroll down and look at the description of this video and you'll see right at the top you'll see a link to the blog post and just click the link in the description. It will take you right to the blog post and you just follow the same simple steps that you see there, okay?
So why am I doing this? Well, that's one of the things that we like to do at AwesomeREI.com is just share the tools and resources the contracts and the checklists and marketing pieces that have been time tested and proven for us, so that you can shorten your learning curve and sooner than later use them in your own real estate game to level up your bottom line. That's why we exist.
So you're welcome to swipe and deploy this and we have a handful of other things like this that we also give away. So on the blog post, you'll see links to some of the others that we've given away over the years… contracts and proven direct mail pieces that we've used and all that good stuff, okay?
Let me know what you think. Leave a comment below, please and I would love to hear from you. Is this something that you've used before? Maybe you have your own story to share about a seller that backed out on you that you wish you'd known about this? Maybe you've used something like this before.
There's also another document it's very similar function called the Memorandum of Agreement. So maybe you've used a memorandum of agreement or an affidavit of equitable interest. It's just separate fancy ways to say basically the same thing.
All right, so that's it. Thanks for tuning in and don't forget to be awesome today. JP out.
An Affidavit of WHAT?!
This handy dandy little one pager protects your interests as the buyer. It’s a form you will only need in certain cases, but one you should always keep on hand.
And yes, I'm giving you mine. So, now you will. ッ
First, let's just quickly clarify…
What the heck is “equitable interest”?
Equitable interest is what you (as the buyer) have ownership of during your contract period – from the time you both sign until you actually close.
It's more specifically defined by precise contract terms explicitly agreed to when a purchase & sale agreement is activated for any piece of real property.
And — Snapple Fun Fact — this “equitable interest” you now have is technically considered personal property, and it's what binds the seller to you and the terms of the contract. It's actually this “equitable interest” that you're selling when you wholesale a property via assignment.
That's not really the point. Just a nerdy sidebar I guess.
Here's the bottom line…
If you have a contract to purchase a property, and you’re not 100% sure the seller’s going to be loyal to the terms of your agreement, then you can protect your equitable interest by filing a document like this.
It basically gives public notice that you already have a signed agreement to purchase the property from the homeowner.
Doing so effectively “clouds” the property title, and makes it very difficult (if not impossible) for another buyer to get clear, insurable title. At least not without expense and hassle factor.
The “bad news” is that you have to get this doc notarized in most states in order to be “recordable” with your County.
But the “good news” is that you (as the buyer) are the only one who needs to sign it! Easy peasy.
So, it's not something you use all the time. But if you think you have a squirrely seller who may not make good on their end of the deal, a simple doc like this in your ‘bag of tricks' is a super useful tool you can deploy to protect your deal.
I’ve only ever done it twice, and one of those times it saved a deal.
Affidavit of Equitable Interest: Get Mine Now 🙂
Ready to just grab mine for your own Awesome bag of tricks?
Sweet, just remember: You might want to run it by a local Notary Public to make sure the notary verbiage is kosher for your area…
Here's how…
Step 1 ⤸
“Like” our Facebook page please?
Step 2 ⤸
Just leave a comment below sharing your honest feedback on the affidavit of equitable interest template I'm freely sharing with you. Whatever you think after hearing my thoughts behind it in the video above. Good, bad, and anywhere in between. Seriously.
Alternately, I’m also interested in hearing anything else (another resource or tool) that you’d like us to share in a future “Swipe & Deploy” like this. Do tell.
Step 3 ⤸
Then Chuck Norris will hand you over my template.
Totally serious. Just try it. 😀
Oh, and BTW…
In case you don’t know already, there’s an entire “Swipe & Deploy” goodies category over here—which we’re always adding to, and currently gives you everything from a transfer property letter, simple real estate contract to option agreements, a tasty letter of intent template, MLS keywords, a seller phone script & voicemail script— even some marketing goodies like one of our favorite motivated seller letters and seller postcards too.
Awesome JP!
This thing is awesome, yeah!
JP thank you for sharing a tool that we may need at some point in our endeavors.
Great info and thanks for the template!
Thanks for all the advice
Thank you JP! Very valuable tool to have
You’re the best as always!
Thanks this is very good to have.
This is terrific–as always, thanks for sharing the Agreement and your experiences.
Thank you for sharing! What do you think about a Memorandum of Understanding as well?
I am just getting started, a
I appreciate any help I can get!
great idea! unfortunately there are sketchy people and no ones keeps to their word anymore, it has to be on paper.
Great! Thank you!
Thanks for this, good idea for both sides to get a win win.
Thanks, JP. This was super helpful and I will definitely keep it on hand for situations where sellers try to back out of a RE Purchase Contract, etc. Cheers.
Thanks JP and Patrick for the awesome information, JP always has a fun way of sharing. I realized, like you pointed out
that where you are could change policies. Good to have as much as possible when doing a deal. Thanks again.
Thanks for the doc
Thanks for the help. This is great.
Nice to know. Always good to protect one’s interest in a deal. I always thought a seller can back out of a deal unconditionally!
Awesome REI you are truly very helpful. You provide help every step of the way.
Thanks for the great advice.
Nice I’ll put with my contracts
Thanks for the gem. I wish i had something like this because the same thing happened to me and i lost the deal.
Thanks for the docx, I appreciate the support!! Be blessed
This is a very unique and fantastic document and tool. It’s the very first time I have heard of it. I really appreciate your advice.
Thank you for the advice! I hope I won’t have to use it, but grateful to have it!
Recording against title in County clerks office .. is very powerful … This stop a deal that we had like a Brick Wall .. could NOT move forward until it is resolved! Thank you Awesome REI this shows that you continually invest in your members success … as we know success is earned ! Thank You
Thanks for all the advice and content you provide. Awesome!
thank you
Hello, this is great material. It keeps both the Sellers and Buyers from undercutting you within the deal. Awesome info
Equitable interest document is a must-have. Could have used it recently.
this is great and it works like a charm!
I’m grateful thank you JP and awesomerei for tools for success
Thank you so much for the gift. Now, if you could just give me some useful instructions on how to do the job you promised you’d teach me, that would be great.
I really enjoy the use of powerful wording to add power to legal papers. Looking forward to downloading the affidavit!
Interesting, useful tool. I live in an area where honesty in transactions can be hard to come by, this document will help me sleep better at night. Thank you.
It’s hard to leave a comment before I have a chance to review the product.
I’m excited to get started with the program and looking forward to working with the team to close my first deal, hopefully within the next 30 days ;-)!
This tool may help growth as needed
Thanks for keeping all of us supplied with the best tools for success ever JP!
Really enjoy getting good legal contracts from Awesome.
An ounce of prevention as they say and since I’m new to this game, greatly appreciated!
just spoke to a friend of my husband, he is thinking of selling his property and so is his daughter, this information will come in handy, Thanks Alot
Excellent protection for hard-earned, time-invested work to help a home owner save his credit and other possible unsavory consequences such as family on the street.
It’s nice to know that it’s exactly what you say it is and the best part is it’s truly free.! No click bait half truths! AWESOME! THANK YOU
Awesome tool to have in your investment strategy planning.
Can save you a whole lot of wasted time and energy.
I assigned my very first wholesale property to a buyer and he fell victim to this. He even accused me of having something to do with it. I would have gladly gave him a copy of this.. way back then in the early 2000’s. Thanks for this. Hopefully now I can find the link to get it!
Thank you for sharing! Hope won’t need to use too often.
Great idea to save a transaction. Appreciate the Awesome help guys.
Excellent thank you
Great tool to manage risk
It’s good info to know. Be careful because you might end up being sued for clouding a title if you can’t perform. Some counties take a long time to remove affidavits.
great protection!
Thanks for posting all of this helpful information!
I’m looking forward to thr many jewels of information Awesome REI has to share
This is definitely something I can use… thanks for sharing.
Great strategy to protect oneself from getting snowed under by another buyer and a squirrely seller. Thanks.
Great advice! Excited to get started with the program!!
Good stuff. Nice to add to my arsenal.
This just gets better and better everyday! Thanks a lot guys!!!!
This is a great way to protect yourself from flaky sellers and deal thieves.
Nice to know this tool is available
I like it. Good way to curb greed and keep other unscrupulous people from running under you for the deal
Super helpful information!
So grateful this exists. We have a neighbor trying to steal vacant land from us, and this document is going to be very useful for fighting the ridiculous adverse possession claims, sadly,….all because we allowed them to park on our property. After 3 years in court and this document will literally end their case! Thanks so much for sharing it here!
very useful tool to protect deals when needed thanks so much
Important that investors understand this issue in every state they do business in!
I prefer to know how to protect a deal than b oblivious that it can’t happen. I appreciate your willing to share this document that’s vital to have in this business.
Thanks JP, these tips and strategies are the Best for our businesses! Salud…
Great Stuff JP, I need this like I need to breathe dude! Thanks a Zillion…
AWESOME TOOL TO HAVE IN ONE’S DOCUMENT TOOLBOX!
This is a great to have in my toolbox. I will use it when needed.
AwesomeREI is truely AWESOME!
JP, This will help any serious Wholesaler hang on to their hard earned deals. Thank you again. Kevin in Pensacola
I like having this application for use with new buyers
Thanks
Thank you again for the resources you provide. They are invaluable.
ah….having trouble getting this doc. Link. Ot working. I’m in your program.
Thanks, I will keep this on file.
You Da Man JP! Thanks again!
Yay!!! Love you JP & all you share. Thank you
Thank you! Your videos are great and kinda funny @ darkside =)
Awesome
Thanks again for another tool. But this one is one I hope I never have to use.
This is awesome!
The Affidavit of Equitable Interest document is great to have!
This is definitely something I can use, thanks for sharing
Thank you, seems you guys think of everything!
Thanks for always sharing valuable content. I try and educate my customers, but they watch HGTV and think they know more than the professionals.
Always enjoy your emails to help us do well in the business.
I read this article earlier, but couldn’t print off the affidavit. Now I’m trying again to print it, and you’re not giving me access to it? What other hoop do I have to jump through to get access to this document. I’m very frustrated with this process!!!
Seeing this, and others like it, is a reminder if all the “shenanigans” people can pull in this business, but glad to have this in my arsenal when they do!
It’s always smart to have a safety net and I think this affidavit is exactly what we need. Thanks for sharing.
Lets Go!
Let’s hope we never gave to use it.
Awesome, awesome, awesome information JP, thank you!
This was good information JP, thank you!
I am definitely going to use this. I am committed and want my seller to be as well! Thanks for this piece of wisdom.
USED THJIS BEFORE–VERY GOOD
Sounds GREAT! But can’t download.
Looking forward to implementing these resources. Good place to start, helping others and building a future for family. Thanks for sharing.
Awesome info, Thank you JP
“Equitable Interest”… Signed and Recorded… a ‘cloud’ on the title – if need be. Good idea… could be mis-used… Don’t be that person…
Had this , but lost it, glad it’s on your blog post.
Thank you so much! Having a well written document to file at the county, can be a real life saver for some deals. I have used a “Memorandum of Contract” in the past, and it came in very handy several times. I like your “Affidavit of Equitable Interest” which should come in handy on a variety of deals in future.
Dude! Thanks for the awesome share.
This is an absolute necessity as much as insurance is to life and health. Protection! -When you’ve put time and effort wastefully its because somebody made a promise they didn’t keep. So, put it in writing.
Good thinking.
I like this.
A good way to keep the seller honest and the buyer operating with dignity.
I’m excited to get started with the program and looking forward to working with the team to close my first deal, hopefully within the next 30 days ;-)!
This is a really cool strategy, and a great way to protect the interest in the deal from both sides, the seller side and the cash buyer side.
This looks like something I can use. Thanks for sharing
Better save than sorry Thank You.
I can see where this could really save a deal, as JP described. Thanks for sharing – again!!
Helpful information , good to know how to handle these types of situations if they arise.
Good idea to keep both parties honest and Awesome information thank you For sharing this.
This is something that the real state tv shows won’t show you an tv, so is very interesting what you are teaching many of us beginners Thank You.
THANK YOU FOR SHARING YOUR EXPERIENCES!!!
better safe then sorry…thanks and GOD BLESS YOU IN JESUS MIGHTY NAME!!!!
Thank you for providing so many ways for me to glean from the best in the business!!!