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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Use the finite consideration approach.. Posted by Ward-CA- on April 27, 2003 at 5:03 PM In Reply to: EPA consideration question posted by zachary on April 27, 2003 at 11:43 AM : Ward, : I asked this same question, and you answered it prior to the messge board going down. I forogt to print your response and now can't remember your exact reply..... : QUestion: when getting the EPA signed on the first visit prior to doing a title search, and verifying exact amount of net equity how do you write in the consideration amount and allow for it to be changed later? : you answered that you could write in "see exibit A" (or was it addendum A??) : What do I put on the addendum? Do I state what the estimated cosideration is contingent on title search and property inspection? Any adjustments made by such-in-such a date? : civil code 1695. 3. C. states: : (C) : The total consideration to be given by the equity purchaser in : connection with or incident to the sale. : (d) A complete description of the terms of payment...... : : This seems that exact consideration has to be stated in the EPA when signed.... : : thanks and sorry for the long post. : Zachary =•=•=•=•=•=•=•=•=•=•= Zachary, I agreed with you that you could explain your consideration formula in an addendum (Exhibit A). However, I personally have never felt the need for such. I make my determination of the total consideration I’m going to pay the seller at the time I execute the Equity Purchase Contract (EPA). I take the Projected Net Equity amount and divide by 2 and that’s the consideration I’m giving the Seller. Wow, knowing that finite number allows me the luxury of filling out the promissory note and deed of trust for their carry-back balance, right then and there. What I don’t like is setting things up where they might have to changed or adjusted in the future. Needing their cooperation months later is something I studiously avoid as much as I can. Hopes this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : I asked this same question, and you answered it prior to the messge board going down. I forogt to print your response and now can't remember your exact reply..... : : QUestion: when getting the EPA signed on the first visit prior to doing a title search, and verifying exact amount of net equity how do you write in the consideration amount and allow for it to be changed later? : : you answered that you could write in "see exibit A" (or was it addendum A??) : : What do I put on the addendum? Do I state what the estimated cosideration is contingent on title search and property inspection? Any adjustments made by such-in-such a date? : : civil code 1695. 3. C. states: : : (C) : : The total consideration to be given by the equity purchaser in : : connection with or incident to the sale. : : (d) A complete description of the terms of payment...... : : : : This seems that exact consideration has to be stated in the EPA when signed.... : : : : thanks and sorry for the long post. : : Zachary : =•=•=•=•=•=•=•=•=•=•= : Zachary, : I agreed with you that you could explain your consideration formula in an addendum (Exhibit A). However, I personally have never felt the need for such. I make my determination of the total consideration I’m going to pay the seller at the time I execute the Equity Purchase Contract (EPA). : I take the Projected Net Equity amount and divide by 2 and that’s the consideration I’m giving the Seller. Wow, knowing that finite number allows me the luxury of filling out the promissory note and deed of trust for their carry-back balance, right then and there. : What I don’t like is setting things up where they might have to changed or adjusted in the future. Needing their cooperation months later is something I studiously avoid as much as I can. : Hopes this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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