rumble1977
New Member
I have been talking to a developer who owns all of the houses on my side of the street in a desirable community. He has been interested in acquiring all of the houses in order to devleop condos/townhomes in their place. My house is in the middle of the street, and I enjoy living here very much and it's a nice home (brick/stucco two story tudor). Recently, however, he presented me with an offer where he would exchange one of his properties (across the street) for mine, with the added incentive that he would tear down the existing small home on the property and build me a new home on its current foundation with some of my specifications in mind. Although this seems like a good idea, I would be reducing my overall square footage slightly and reducing the lot size from what I currently own. Also, he proposed plans for a new house to me, but will not let me have a copy until I sign a WB-35 property exchange contract along with an addendum containing the following terms:
1) I must satisfy my mortgate obligation before the closing on the property, or he will loan me the money at the published prime rate.
2) We would close on the deal before he began deconstructing and construction on the new home, with me continuing to live in my current property with a lease arrangment from him rent-free (exception I pay a $1500 security deposit, and all utilities)
3) Right of First Refusal. While he claims I could live in the new home as long as I want (since I would own it, that would be a given), he is interested in owning the entire neighborhood someday for development, and would ask for first purchase rights upon any sale of the property down the road.
Now, while the basic concept is appealing, he wouldn't listen to any of my minimum requirements for me to be satified with the exchange during any of our conversations, stating that we would work that out after committing to a contract. Also, when I asked what kind of budget he had in mind for the house and accessories (cupboards, floors, etc) he wouldn't give me a number, and when we had a joint meeting with the builder, he contradicted him frequently. Finally, he asked for a month to get this form together (we've been discussing this for a year) and when he presented me with the form, he only gave me 7 days to commit, followed by a 15 day period where we must come to a final agreement on the design and accessories. Why such a short time-frame? How could I ask questions or consult an attorney? Needless to say, I felt railroaded, and declined the contract since I am in no hurry to leave my nice home unless I am totally satisfied with the offer. Now, he hasn't responded to my action yet which left him an option open for re-negotiation by me. If he does come back with an alternate offer on the terms, is this whole process a good idea? He's the kind of person who changes what he said from meeting to meeting, which is part of why I am nervous about dealing with him. What potential pitfalls could I run into? I am not going to accept being a renter from him, and what if the property he builds is not up to par? Any insight or opinions on this unique situation would be greatly appreciated.
1) I must satisfy my mortgate obligation before the closing on the property, or he will loan me the money at the published prime rate.
2) We would close on the deal before he began deconstructing and construction on the new home, with me continuing to live in my current property with a lease arrangment from him rent-free (exception I pay a $1500 security deposit, and all utilities)
3) Right of First Refusal. While he claims I could live in the new home as long as I want (since I would own it, that would be a given), he is interested in owning the entire neighborhood someday for development, and would ask for first purchase rights upon any sale of the property down the road.
Now, while the basic concept is appealing, he wouldn't listen to any of my minimum requirements for me to be satified with the exchange during any of our conversations, stating that we would work that out after committing to a contract. Also, when I asked what kind of budget he had in mind for the house and accessories (cupboards, floors, etc) he wouldn't give me a number, and when we had a joint meeting with the builder, he contradicted him frequently. Finally, he asked for a month to get this form together (we've been discussing this for a year) and when he presented me with the form, he only gave me 7 days to commit, followed by a 15 day period where we must come to a final agreement on the design and accessories. Why such a short time-frame? How could I ask questions or consult an attorney? Needless to say, I felt railroaded, and declined the contract since I am in no hurry to leave my nice home unless I am totally satisfied with the offer. Now, he hasn't responded to my action yet which left him an option open for re-negotiation by me. If he does come back with an alternate offer on the terms, is this whole process a good idea? He's the kind of person who changes what he said from meeting to meeting, which is part of why I am nervous about dealing with him. What potential pitfalls could I run into? I am not going to accept being a renter from him, and what if the property he builds is not up to par? Any insight or opinions on this unique situation would be greatly appreciated.
