Contract addenda and non contract forms flashcards bybrainscape
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Short Sale Addendum to Contract for the Purchase and Sale of Real Estate This is an Addendum to that certain Contract for the Purchase and Sale of Real Estate (the CPSRE) dated _____________________________________________ (date), including any prior addenda and counteroffers between _____________________ ___________________________________ (Name of Buyer), as Buyer, and ________________________________________________________ (Name of Seller), as Seller, regarding the Property located at _____________________________________ ________________________________________________________________________________________________________________________________________________ (street address, city, county, state, zip code) (the Property). The terms of this Addendum are hereby incorporated as part of the CPSRE and to the extent the terms of this Addendum modify or conflict with any provisions of the CPSRE, including any prior addenda and counteroffers, these terms shall control. 1. Acknowledgment of Short Sale Seller represents to Buyer that the agreed upon Purchase Price for the Property is less than the amount(s) owed to individuals/entities (Third Parties) that have an interest in the Property. For purposes of this Addendum, the Third Parties may include, without limitation: institutional lenders, mortgage insurers, bankruptcy trustees, federal, state and local tax authorities, and private parties. The Third Parties will be identified on the Commitment for Title Insurance referenced in Section _______________ of the CPSRE. Since the Third Parties will be asked to approve a lien payoff that is less or short of the amount actually owed, this proposed transaction is referred to as a Short Sale. 2. Third Party Approval of the Short Sale Buyer and Seller acknowledge that a Short Sale requires the written approval of the CPSRE by the Third Parties. No later than four (4) days after Acceptance of the CPSRE by Buyer and Seller (as defined in Section _____________ of the CPSRE, Seller shall submit to the Third Parties the proposed CPSRE (the Proposed CPSRE), together with any additional documentation required by the Third Parties, for review and approval. Buyer and Seller acknowledge that the Third Parties may, in their sole discretion, elect to request modifications to the terms of the Proposed CPSRE, or reject the Proposed CPSRE. 3. No Binding Contract Because the Proposed CPSRE represents a short sale, Buyer and Seller acknowle
Edge that this cpsre shall be entered into and executed only by and between the buyer and seller. Neither buyer nor seller shall enforce this addendum against the other. 5. No binding contract, the buyer and seller acknowledge that they are each entitled to terminate this contract upon notice of termination, by delivering written notice of termination to the other, which notice does not exceed one (1) day from the date of receipt of written notice of termination by either party, unless the short sale buyer has notified the seller that he or she will assume title to the property, or, in the case of land under mortgage, both parties give prior notice to the lender, the lender's agent, or their successors (or in the case of land under mortgage, the homeowner to which title is assigned or held by the mortgagee or assignee). 6. If a foreclosure sale cannot be obtained under the terms of this addendum (after the second attempt by the buyer to make this offer, or after the third transaction by the seller involving this seller) the parties agree: a. If the foreclosure sale was obtained (i) by the sale of the property and/or in foreclosure, or (ii) by the assignment or purchase of the property under a mortgage with a principal that is not a bona fide purchaser (and (iii) in the case of a property covered by a deed of trust). The parties will, within two (2) days of the date of the execution of this addendum to consummate this short sale transaction by foreclosure sale/sale-in-foreclosure. B. The buyer will give the seller one (1) month's notice of intention to exercise a right to recover in excess of twenty-five per cent of the total unpaid amount of the property, including a lien on the property as well, if the purchase price of the property was greater than forty per cent of the original purchase price, or if the buyer is unable to afford to make the payment of such amount in full on the date upon which the short sale commenced in this state. If such notice is not given under this section, the buyer, in his or her sole discretion, may terminate this short sale without notice to the seller. C. If the buyer obtained the foreclosure sale in good faith, without knowledge that the seller had commenced this short sale transaction or, in the case of a property covered by a deed of trust, after it had been consummated and without knowledge which is required to effect a foreclosure sale by a lender pursuant to title 7
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