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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Just be fair handed... Posted by Ward-CA- on May 29, 2003 at 10:25 PM In Reply to: Equity Split Questions posted by John Chan on May 29, 2003 at 5:44 PM : I do have a quick question about profit equity splitting. Do you have to in : California real proerty market under law split the profits in half like : 50/50(or as close to) or is this just a moral thing investors do? : But what if I plan to use it for my primary resisdence but will most : likely(95%) sell it within 2 years. My current home is in Escrow right now? : And so if this property has a debt of total $185K and it can be resold in : today's market for $380K(Neighbor exact unit sold for $400k) and I came in : as an investor, I would do a 50/50 split but does it mean if I use it for my : primary residence, then do I have to factor my 50% split and the math should : be $380K-$185K=$195K/2 = $97.5K+$185K =$282.5K for my offer to purchase the : property? Wouldn't it be cleaner to purchase the property outright, make an : offer and open excrow? Besides, the seller knows he is coming out : ahead...and plus I don't have to worry about any othe liens since he will : have earnest interest to get rid of them or he can't sell property to me. : But california law says seller has 4 years to sue me. They could easily sue : me for misinforming them to sell property under market value? How do I : prevent this? : John Chan =•=•=•=•=•=•=•=•=•=•=•= John, I’d invite you to read Civil Code Section 1695 (see the Foreclosure Codes link below) and then I think you’ll understand that CA law insists that you be able to prove that you did NOT take unconscionable advantage of a homeowner in foreclosure. As you seem to know, CC§ 1695 does not apply if you intend to occupy the property as your personal residence. There’s no set time period you have to occupy the premises before you move out and the post-sale right of rescission doesn’t apply either. Hope this helps. Foreclosure Codes Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I do have a quick question about profit equity splitting. Do you have to in : : California real proerty market under law split the profits in half like : : 50/50(or as close to) or is this just a moral thing investors do? : : But what if I plan to use it for my primary resisdence but will most : : likely(95%) sell it within 2 years. My current home is in Escrow right now? : : And so if this property has a debt of total $185K and it can be resold in : : today's market for $380K(Neighbor exact unit sold for $400k) and I came in : : as an investor, I would do a 50/50 split but does it mean if I use it for my : : primary residence, then do I have to factor my 50% split and the math should : : be $380K-$185K=$195K/2 = $97.5K+$185K =$282.5K for my offer to purchase the : : property? Wouldn't it be cleaner to purchase the property outright, make an : : offer and open excrow? Besides, the seller knows he is coming out : : ahead...and plus I don't have to worry about any othe liens since he will : : have earnest interest to get rid of them or he can't sell property to me. : : But california law says seller has 4 years to sue me. They could easily sue : : me for misinforming them to sell property under market value? How do I : : prevent this? : : John Chan : =•=•=•=•=•=•=•=•=•=•=•= : John, : I’d invite you to read Civil Code Section 1695 (see the Foreclosure Codes link below) and then I think you’ll understand that CA law insists that you be able to prove that you did NOT take unconscionable advantage of a homeowner in foreclosure. : As you seem to know, CC§ 1695 does not apply if you intend to occupy the property as your personal residence. There’s no set time period you have to occupy the premises before you move out and the post-sale right of rescission doesn’t apply either. : : Hope 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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