Nathan Payne lost a Denver deal when a seller backed out after agreeing to an assignment. The contract was missing language to file a notice of interest that would have clouded the title and stopped the seller from working with another buyer. A title company attorney provided the exact clause needed.
I was doing a deal when I went nationwide a couple years ago in Denver. Now, a seller had agreed to a price and we were able to assign it. We had a buyer, everything was ready. Then the seller said, hey, I don't want to sell anymore, I'm going to go with someone else. And for us, we were like, hey, you can't do that. But when it came time for us to enforce the contract, we didn't have the right language. And we reached out to the title company that we had the contract with and we said, hey, can we cloud the title? Can we stop the seller trying to back out and go with someone else? And he said, According to the agreement that you have, the contract you have, it's not in your contract that you can cloud title or file a notice of interest. And I was like, dang it. See, and that's the thing is you just don't know what you don't know. And in that time, I never had anyone that tried to back out up until that point. Actually, before all this, like when sellers tried to leave, I would just be like, okay, sounds good, I can't make you. But then I found out that like, hey, you don't just get to leave and take off and go work with somebody else because they said they could pay a little bit more. But anyway, the attorney at the title company told me, hey, this is the language, this is the exact language that you need in your contract in order for this to be valid. And so you can stop people from backing out by clouding their title.
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