Fill and Sign the Short Sale Addendum Form

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 acknowledge and agree that there is no binding contract for the purchase and sale of the Property and no earnest money is required until Buyer, Seller, and the Third Party reach a written agreement with each other as provided in Section 4 below. 4. Third Party Conditions If one or more of the Third Parties requests modifications to the Proposed CPSRE (Third Party Conditions) Seller shall, no later than four (4) days after Seller’s receipt of the Third Party Conditions , provide a counteroffer to Buyer that includes the Third Party Conditions that modify Buyer’s obligations under the CPSRE . The Third Party Conditions shall not be binding upon Buyer or Seller without their mutual written consent, which consent may be withheld by Buyer and/or Seller in their respective sole discretion. If by the Approval Deadline referenced in Section 5 below, Buyer, Seller and the Third Parties reach a written agreement, and Buyer has not previously cancelled the Proposed CPSRE as referenced in Section 7 below, then Buyer and Seller shall be deemed to have entered into a binding contract with each other for the purchase and sale of the Property, with the Third Parties approval of the Short Sale. 5. Failure to Obtain Third Party Approval If by the ________________________________________________ (date), (the Approval Deadline ) Buyer, Seller and the Third Parties have not reached a written agreement as provided in Section 4 above, then the Proposed CPSRE shall automatically be deemed cancelled and any earnest money shall be returned to Buyer . 6. Seller’s Right to Accept Additional Offers Buyer agrees that at any time prior to Buyer, Seller and the Third Parties reaching a written agreement as provided in Section 4 above, Seller may: (a) continue to market the Property and advertise it through the MLS as available for sale; (b) accept additional offers for purchase of the Property; and (c) at Seller’s option, forward any such additional offers to the Third Parties for review and approval. 7. Buyer’s Right to Cancel Proposed CPSRE In consideration of the rights reserved by Seller under Section 6 above, Seller agrees that at any time prior to Buyer, Seller and the Third Parties reaching a written agreement as provided in Section 4 above, Buyer may cancel the Proposed CPSRE for any reason, or for no reason, by providing written notice to Seller; whereupon any earnest money shall be returned to Buyer. 8. Contract Deadlines Contract Deadlines in Section _________________________ of the CPSRE may be modified in the event Buyer, Seller, and the Third Parties reach a written agreement. ALL OTHER TERMS of the CPSRE , including any prior addenda and counteroffers not modified by this Addendum, shall remain the same. ( ) Seller ( ) Buyer shall have until (e.g., 5:00 P.M. CDT) to accept the terms of this Addendum in accordance with the provisions of Section ____________________ of the CPSRE . Unless so accepted, the offer as set forth in this Addendum shall lapse. Witness our signatures as of the dates set forth below. _______________________________________ Date: _________________________ _______________________________________ (Printed Name and Signature of Buyer) _______________________________________ Date: _________________________ _______________________________________ (Printed Name and Signature of Seller)