Section 2.e Lines 87-89
Buyer shall deliver to seller the LSU with a minimum of lines 1-40 complete within five (10) days of contract acceptance. Seller is entitled to an updated LSU upon request.
Section 2.f Lines 90-92
Additionally, section 2f requires the buyer to provide the lender with the “Buyer’s name, income, social security number, Premises address, estimate of value of the Premises, and mortgage loan amount sought” within three days after Contract acceptance
Section 2.g Lines 93-96
Buyer agrees to diligently work to obtain the loan and will promptly deliver all lender requested documentation. Buyer is required to sign all loan documents three (3) days prior to Close of Escrow date.
Section 2.h Lines 97-98
Indicates the buyers intended type of financing.
Section 2.i Lines 99 And Section 2.j Lines 100-102
All costs of obtaining a loan shall be paid by the buyer unless otherwise detailed in the contract.
Seller concessions are addressed here. Buyer shall no longer deliver an additional clause addendum.
If Buyer is obligated to provide compensation to Broker(s), can the funds come from Seller concessions?
What fees are not included in the seller concessions?
Section 2.k. Lines 103-106
Buyer must immediately notify the seller in writing of any changes to the buyer’s loan program, finance terms, or lender according to the Pre-Qualification or LSU whichever was provided by the buyer. The buyer may make unilateral changes so long as the changes do not affect the buyer’s ability to obtain approval without PTD conditions by COE date, increase the seller’s closing costs or delay COE.
What should you always do as the buyer’s representative if there is any change to the buyer’s loan program?
Section 2.l Lines 107-110
The appraisal contingency provides that the buyer may cancel the contract if the property does not appraise for at least the value of the purchase contract. Upon notice of the appraisal the buyer has five days to take action or the appraisal contingency is automatically waived.
Section 2l explains that if the Premises fails to appraise for the purchase price, Buyer has five days after notice of the appraised value to cancel the Purchase Contract and receive a refund of the Earnest Money. The words “unless otherwise prohibited by federal law” were added to the end of this section. Why?
The lender performs an appraisal, which reveals items that must be repaired before it will agree to fund the loan. At Buyer’s request, Seller agrees to perform the repairs. After the repairs are made, the lender requires an inspection to confirm that the repairs have been completed to the lender’s satisfaction. Who pays for the cost of the inspection?
Does the appraisal contingency apply to any appraisal required by the lender?
Does notice of the appraised value occur when the buyer/buyers agent is told the appraisal was low or does notice have to be in writing?
If the appraisal comes in low, what are the buyer’s options?
If the appraisal comes in low, does the buyer have to reduce the sales price?
In a cash offer does the buyer have an appraisal contingency?
If the seller believes the buyer failed to make a diligent and good faith effort to obtain loan approval, what are the seller’s options?
Your buyer is an investor intending to flip the property and intends to use hard money to close the “B” transaction. Should the offer be written as a financed or as a cash offer?