consultants are sandburs

Saturday, October 25, 2014

RAMSEY'S HRA AGENDA - This one looks like tying up a land parcel until Feb 18, and a three grand earnest money is not a good option price. Or is it?

HRA agenda, this link. Conditioned on Buyer subjective satisfaction with financing available; which makes it a promise that can be hiked away from at any convenient time. Deadline setting, Feb. 18 is months away. What about a term allowing consideration of any intervening unconditional purchase offer. At the least.

It is paying three grand earnest money for the property to be off market until months from now; in effect, three grand for an option to purchase in the future; and a dispute over refund of the earnest money due to failure of a contingency makes it not ever that. "We were unhappy with financing available, subjectively so, and the deal was better per another parcel we tied up in Elk River, so sayonara, and since it never closed refund the earnest money please," can by mid-February of next year be a reality. The question then, how likely is it other fish in intervening time might bite a hook? And be landed?

Three grand to tie up a piece of land, with conditional escape and recapture of the three grand possible, sure seems a bad option contract for City of Ramsey to be getting into.

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