Hello,
I was reviewing the purchase contract template provided in the masterclass course and when thinking about the scenario where I get a signed agreement from a buyer and the price is based on only a cursory review of the property. What is the typical procedure to follow if I have to adjust my offer down from what was originally agreed to after conducting a more thorough review? The cancellation clause appears to be my “out” in this scenario but it mentions that I would need to deliver a “written notice of cancellation” to the seller. Does anyone have information on what that notice would look like and what type of verbiage would be good to use? I plan on speaking with a closing attorney in my state (SC) about my purchase agreement in general, but wanted to get feedback from other investors on what this looks like in practice.
Hi @Derric_Akin, that cancellation notification could be anything that clearly communicates to the seller in writing that you are terminating the agreement. ChatGPT could be your friend in putting this together.
For example, I just gave it this prompt:
If I want to send a written notification to a seller that I am terminating or cancelling our purchase agreement, in accordance with the terms of our agreement, what could that written notification look like? Please make it as succinct as possible.
And it gave me this:
Subject: Notice of Termination of Purchase Agreement
[Seller’s Name]
[Seller’s Address]
[City, State, ZIP]
[Date]
Dear [Seller’s Name],
Pursuant to the terms of our Purchase Agreement dated [Agreement Date] for the property located at [Property Address], I am providing formal written notice that I am exercising my right to terminate the agreement effective immediately.
Please let me know how you would like to proceed regarding any necessary final steps.
Sincerely,
[Your Name]
[Your Contact Information]
This seems to be written in the format of a letter, but you could just as well send this kind of thing in an email. In fact, email might be even better, because it would give you a digital record that you sent it, whereas mail would be harder to prove without paying extra for delivery confirmation.
@retipsterseth Thanks for the feedback. I like that it is simple and to the point.