Real Estate

Payment before signature or vice versa?

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  • May 11th, 2020 10:59 pm
[OP]
Member
Jan 17, 2016
212 posts
26 upvotes

Payment before signature or vice versa?

I'm concluding a sublet agreement as a tenant with a subtenant (sublessee). The subtenant has signed the agreement but he says that he wants me first to sign on the other side and then he will send me an Email Money Transfer. What happens if I sign and he does not send me the transfer? Could there be some legal complications in this case? Is it better not to sign before receiving the payment or am I just overthinking the matter?

What if he decides to send the payment much later, closer to the commencement date of the sublet? I need this payment to be received now so that I can be assured that there is no necessity to look for other subtenants.

Thank you.
Thread Summary
Should an agreement be signed before payment is received or after?
6 replies
Member
Sep 15, 2018
312 posts
51 upvotes
I was in a similar situation with something else. We ended up meeting up and exchanging signatures and money in person. Not sure if this is an option for you.
[OP]
Member
Jan 17, 2016
212 posts
26 upvotes
Kyle12345 wrote: I was in a similar situation with something else. We ended up meeting up and exchanging signatures and money in person. Not sure if this is an option for you.
I wish it was, but I'm in a very distant place in Canada now.
Member
Sep 15, 2018
312 posts
51 upvotes
automorphism wrote: I wish it was, but I'm in a very distant place in Canada now.
Ahh. I dunno, sounds like one of you might have to take a leap of trust. It might come down to who wants it more to see who budges first. You can walk away and find someone else if they aren’t transferring first. They can also walk away and find somewhere else to rent if you aren’t signing first.

What about adding a clause, stating that this agreement is only valid once payment is received and then a line to enter the amount received and then a signature for that to make it official?

In terms of them sending the transfer late, what about adding a date and time before the agreement becomes revocable allowing you to move on?

Just some thoughts.
[OP]
Member
Jan 17, 2016
212 posts
26 upvotes
Kyle12345 wrote: What about adding a clause, stating that this agreement is only valid once payment is received and then a line to enter the amount received and then a signature for that to make it official?

In terms of them sending the transfer late, what about adding a date and time before the agreement becomes revocable allowing you to move on?
Thanks. I've thought about adding such a line, but ultimately it wouldn't change anything because another signature would still be required, and the same problem of trust would be present. I'm thinking about sending a friend of mine there to exchange a copy of the agreement signed by me for his payment password.
Deal Guru
User avatar
Mar 23, 2008
11850 posts
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Edmonton
automorphism wrote: I'm concluding a sublet agreement as a tenant with a subtenant (sublessee). The subtenant has signed the agreement but he says that he wants me first to sign on the other side and then he will send me an Email Money Transfer. What happens if I sign and he does not send me the transfer? Could there be some legal complications in this case? Is it better not to sign before receiving the payment or am I just overthinking the matter?

What if he decides to send the payment much later, closer to the commencement date of the sublet? I need this payment to be received now so that I can be assured that there is no necessity to look for other subtenants.

Thank you.
Your risk is minimal. If he doesn’t give the money, he doesn’t get keys.

His risk is large. There’s plenty of scammer “landlords” out there renting out properties they don’t own. And you’re not even available to meet.

So you’ve cleared this with your landlord already?

C
[OP]
Member
Jan 17, 2016
212 posts
26 upvotes
CNeufeld wrote: Your risk is minimal. If he doesn’t give the money, he doesn’t get keys.

His risk is large. There’s plenty of scammer “landlords” out there renting out properties they don’t own. And you’re not even available to meet.
The tenant is already there, he would like to extend his lease and sign an agreement.
CNeufeld wrote: So you’ve cleared this with your landlord already?
Why would this be of a particular concern to you at all?

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