RIP Twitter

#2,201
#2,201
825VOL said:
If we use this stupid analogy, it is more like he agreed to purchase the home for $500k and the appraisal came in at $100k,

For the record, I don't really care what happens to Musk or Twitter. It is just fun to point out the stupidity that you post.
Click to expand...

So, if you sign a contract to buy a house for X, and it's appraised at X-Y, you can get out of the contract? That's a new rule of contract law I'm not familiar with.
 
#2,202
#2,202
evillawyer said:
So, if you sign a contract to buy a house for X, and it's appraised at X-Y, you can get out of the contract? That's a new rule of contract law I'm not familiar with.
Click to expand...
Actually yes. Common contracts have two contingency clauses around the subjected property. Pending inspection of the house and appraisal, where the buyer can void the contract without penalty.
 
  • Like
Reactions: hog88
#2,203
#2,203
evillawyer said:
So, if you sign a contract to buy a house for X, and it's appraised at X-Y, you can get out of the contract? That's a new rule of contract law I'm not familiar with.
Click to expand...

Yes, that is in every real estate contract that is contingent on financing.

Maybe I can explain it better so you can understand. Musk agreed to buy a house based on the photos shown on the listing (SEC filings). When he actually went to take a look the house, the house was a different one than the one in the photos (inaccurate SEC filings). Make more sense to you now?
 
#2,204
#2,204
825VOL said:
Yes, that is in every real estate contract that is contingent on financing.

Maybe I can explain it better so you can understand. Musk agreed to buy a house based on the photos shown on the listing (SEC filings). When he actually went to take a look the house, the house was a different one than the one in the photos (inaccurate SEC filings). Make more sense to you now?
Click to expand...
The listing said 6 bed and 4 bath but it's actually a 3 bed 2 bath. Appraised for less because of that.
 
  • Like
Reactions: 825VOL
#2,205
#2,205
evillawyer said:
So, if you sign a contract to buy a house for X, and it's appraised at X-Y, you can get out of the contract? That's a new rule of contract law I'm not familiar with.
Click to expand...

Yes, whereas financing is concerned. Under normal circumstances there are clearly stipulations in real estate contracts that the property must appraise at agreed to price for purposes of financing or the buyer can walk. Now, an all cash deal would be a different story.
 
#2,206
#2,206
utvols88 said:
Actually yes. Common contracts have two contingency clauses around the subjected property. Pending inspection of the house and appraisal, where the buyer can void the contract without penalty.
Click to expand...
But Musk's contract does not. He waived business due diligence. If he bought a lemon, he's gonna be stuck with it.
 
#2,208
#2,208
Vol737 said:
Yes, whereas financing is concerned. Under normal circumstances there are clearly stipulations in real estate contracts that the property must appraise at agreed to price for purposes of financing or the buyer can walk. Now, an all cash deal would be a different story.
Click to expand...
Appraisal would have to be a contingency on your offer. An offer is the offer unless you put in the contingency
 
#2,209
#2,209
volfanhill said:
Appraisal would have to be a contingency on your offer. An offer is the offer unless you put in the contingency
Click to expand...
It's standard practice and the language is embedded in every offer to a house I've ever purchased (4) with the option to check out of that contingency.
 
#2,210
#2,210
utvols88 said:
You are the only adult who didn't know an appraisal could void a contract to buy a house.
Click to expand...
Parties can generally put whatever terms they want into a contract. But, absent a provision in the contract, you don't get to walk if something is appraised to be of less value than you agreed to purchase it for.
 
#2,211
#2,211
utvols88 said:
It's standard practice and the language is embedded in every offer to a house I've ever purchased (4) with the option to check out of that contingency.
Click to expand...
It's standard practice but you still have to put it in. I just bought my second home in November. In this market we actually discussed not putting the contingency appraisal in there bc we were confident it would appraise for more then asking and the bank would be fine. That would have made us a more attractive buyer. Ultimately decided to put it in. It is an additional part of the contract. Very common yes. Not assumed.
 
#2,212
#2,212
This is so laughable. Musk has purchased billions of contracts and yet us peons know what is in the terms of such complexity
 
  • Like
Reactions: Wireless1
#2,213
#2,213
evillawyer said:
Parties can generally put whatever terms they want into a contract. But, absent a provision in the contract, you don't get to walk if something is appraised to be of less value than you agreed to purchase it for.
Click to expand...

What you keep ignoring is that in the agreement between Musk and twitter, twitter clearly states that their SEC filings are true and accurate. Those filings include the number of active daily users. The number of active users determines advertising rates and the ultimate value of the company. If it turns out that those numbers are greatly inflated, then those filings are not true or accurate. That is all that Musk will need to prove to get out of the deal or lower the price per share of his offer.
 
  • Like
Reactions: Wireless1
#2,214
#2,214
825VOL said:
What you keep ignoring is that in the agreement between Musk and twitter, twitter clearly states that their SEC filings are true and accurate. Those filings include the number of active daily users. If it turns out that those numbers are greatly inflated, then those filings are not true or accurate. That is all that Musk will need to prove to get out of the deal or lower the price per share of his offer.
Click to expand...
Nope. Read the articles I posted. Your argument is addressed and found lacking by everyone.
 
#2,215
#2,215
evillawyer said:
Nope. Read the articles I posted. Your argument is addressed and found lacking by everyone.
Click to expand...

What I originally typed was a bit harsh, so I will try it again.

Just because you and others think that, does not make it correct. We will all have to wait and see. My money is on the billionaire being correct in the end.
 
#2,218
#2,218
evillawyer said:
By morons, you mean all the law professors who teach M&A and Delaware corporate law that are quoted in the articles?
Click to expand...

You can get lawyers to argue anything. Just see this forum for an example. Pay them and they will argue the sky is actually green and the grass is blue. That doesn;t mean they are correect, no matter their degree or where they teach.
 
#2,219
#2,219
825VOL said:
You can get lawyers to argue anything. Just see this forum for an example. Pay them and they will argue the sky is actually green and the grass is blue. That doesn;t mean they are correect, no matter their degree or where they teach.
Click to expand...
But these guys aren't wearing their advocate hats. They're opining on how a court would likely view the case.
 
#2,220
#2,220
volfanhill said:
It's standard practice but you still have to put it in. I just bought my second home in November. In this market we actually discussed not putting the contingency appraisal in there bc we were confident it would appraise for more then asking and the bank would be fine. That would have made us a more attractive buyer. Ultimately decided to put it in. It is an additional part of the contract. Very common yes. Not assumed.
Click to expand...
I'm on number 4. You spoke about it because its rare. EL missed the mark by mocking a common practice in real estate
 
#2,221
#2,221
utvols88 said:
I'm on number 4. You spoke about it because its rare. EL missed the mark by mocking a common practice in real estate
Click to expand...
I said nothing about what is commonly done in (i.e., put into) real estate contracts. I was talking about basic rules of contract law. There is no rule of contract law that says a contract is voidable simply because you agreed to pay more for X than X is worth.

Here's my post again, since you appear to struggle with reading.

"So, if you sign a contract to buy a house for X, and it's appraised at X-Y, you can get out of the contract? That's a new rule of contract law I'm not familiar with."
 
#2,225
#2,225
evillawyer said:
Glad to see your new found sensitivity over mocking those with a disability

Click to expand...

Hated it when Trump did it too. I have never made a secret of the fact that I find Trump to be a thoroughly disagreeable person. Maybe don’t make assumptions about people you don’t know if the future? Wrong is wrong and I condemn it just as vociferously in my own party as I do in the opposition. Hopefully you do as well.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top