I’ve bought and sold a few houses in my day, and usually paper checks or wire transfers are involved to cover earnest money and down payments. Then at some point the participating parties go to a lawyer’s office or the local title company (the parties may meet together or separately) and then you sign your name approximately 42 million times. Then someone sends a check or does a wire transfer monthly (usually) to pay the mortgage and this goes on for a specified period of time.
When Trump or a Trump analog buys a big ol’ m.f. building, say, does the transaction look anything like that?
Corollary (but important): does Trump the buyer have to prove he actually HAS any money in order to buy a building (or a country, island, ocean, planet, whatever) like ordinary mortals?
Re the mechanics they are generally the same with respect to deed, title etc as small transactions. One difference, however, is that for large complex commercial real estate transactions in the tens to hundreds of millions of dollars and beyond the SOP is that they are largely handled electronically and by mail funneled through the settling attorney’s offices unless there is compelling reason to drag a bunch of executives together for settlement. Most of the time in huge deals the buyer and seller entities never see one another most of the interface is through real estate agents (if used), bankers, accountants and attorneys.
In some areas if the buyer and seller are individuals and close to each other it may make more sense (in some cases) time wise to have a standard sit down settlement, but most of the time very large assets are owned by corporate entities and corralling a bunch of busy, often dispersed execs together in one place for settlement is waste of everyone’s valuable time.
In the seven real estate transactions I’ve been involved in (bought four homes, sold three) I’ve only actually met the other side once, and that was because they were nice enough to come and show us how to use the electronics. Is this unusual?
When I sold my last rental property, the title company lady said they almost always have the buyer and seller come in separately to sign. Avoids any problems, especially if it’s an intra-family transaction.
I’m not so interested in whether Trump meets his buyers/sellers as I am in whether anyone has to prove they can “afford” the sale (whatever “afford” means at those exalted levels). Does the buyer have to have cash somewhere, or can this all be done on some kind of float. Maybe astro can answer.
Thanks for that informative response. What about this?
Bilker he may be, but transfer is contingent on payment, and I would guess when the wire only delivers $10,000 and an IOU instead of the expected $100 million, the sellers would be fully aware of his financial status.
I think the OP is picturing some rich-person analog to the old Eddie Murphy routine about how, when it’s only them together somewhere, white people just give each other things.
Serious question: do you really think so? And if they were, would anyone call Trump on it? Does anyone ever call him on anything? And if they do, he just ignores them, right?
Certainly: the nature of commercial contracts is that a party gives the agreed value of whatever property he or she is purchasing; if they don’t the agreement collapses.
Where Trump may be at fault would be with contracts and gentlemen’s handshakes in lieu of silly paperwork, we can surely trust one another, you know I’m good for it, I’ll see you right, you have my word, you remind me of a young me, for services. Rendered to his benefit. Once those have been performed he is in the cat-bird seat and could, were he minded, delay or cut down the agreed payments.
Not that he would of course. His good name is more precious than rubies.
It looks different because of two reasons: (1) Type of property and (2) the entities purchasing.
(1) Type of property. A transaction for a building is a gazillion times more complicated than a transaction for a house. The game plan is the same, but each step is vastly more complicated. Due diligence for a house means getting a home inspection. Due diligence on Trump Tower? I probably don’t know the full extent of it, but you have to at least make sure the building is structurally sound, and you need to vet the tenants and go through all their leases.
Also, in a residential transaction, the forms are standardized and do not get negotiated. In commercial deal, every document can be negotiated and modified.
(2) Entities Purchasing. If an individual is buying a house, it looks a lot different than when a company buys a house. It looks even more different if it’s a sophisticated company that specializes in buying houses. In NYS, we do things differently from the other 50 states, and individual buyers usually show up for their closings. If all goes well they are sitting around the table exchanging stories about the house and the neighborhood. If all doesn’t go well, they are fighting like children over how much it would cost to fix a broken microwave. With a company buying real estate, they send a guy or an attorney who is authorized to sign for the company and he efficiently signs all the necessary paperwork.
Why not? Why would someone waste their time selling a building to Trump without being sure he has the money to buy it?
That’s a very reasonable question. However, reasonable questions do not apply in Trump World.
Trump is a con man, liar, cheater, swindler, bully, and bluffer with the emotional maturity of a toddler. Why would anyone trust him, eh? Good question. If we can find anyone who does trust him, let’s ask them.
Or he simply chooses to ignore the terms of the contract and not pay the contractor. Trump seems to only do this with small contractors who can’t afford to go after him with an army of lawyers.
But the fact is, there are people who do business with him. So he obviously recognizes some of the contracts he signs. I suspect like any egomaniac bully, Trump only stiffs people who offend him in some way and who can’t fight back.
You’re funny.