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Your chance to play mortgage attorney! Please help.


Dottleshead
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I don't have one.  My state doesn't require one and nobody I know has ever used one.  But that doesn't mean I shouldn't.  I got a cash offer tonight from an LLC on my house that is a nice bit of change over the asking price.  While the lure of that is enticing, I've also been presented with the following Buyer's Addendum and a somewhat low escrow.  But that may all be fine and dandy as I meet with my agent tonight in about an hour.  

But hey!  This is a great time to leverage the experience of my forum cohorts!  Please read these and provide your feedback.  I'm looking for red/yellow flags.  I appreciate it in advance.  Always good to have multiple eyes on it.  No, I don't have an HOA or live on a golf course, etc. Just a single family home on a residential neighborhood that is my primary residence.

 

BUYER ADDENDUM to RESIDENTIAL REAL ESTATE PURCHASE AND SALE AGREEMENT Property: __________________________________________________ Date: ____________

In the event any provision of this Addendum conflicts in whole or in part with the terms contained in the main body of the Residential Real Estate Purchase and Sale Agreement (“Agreement"), the provisions of this Addendum shall control and the conflicting terms in the Agreement are hereby considered deleted and expressly waived by both Seller and Seller’s Agent.

1. Buyer and Seller agree Earnest Money is payable by Buyer within three business days after mutual acceptance.

2. In the event that the Property is subject to a Homeowners’ Association ("HOA"), in addition to the items outlined in Form 22D, Seller shall obtain, pay for, and deliver declarations, bylaws, Covenants Conditions and Restrictions, rules and regulations, HOA Questionnaire, insurance and financials (collectively “Association Information”) to Buyer within eight (8) days of mutual acceptance of the Agreement. Notwithstanding anything to the contrary herein, in addition to the other time periods herein, Buyer may terminate this Agreement within five (5) days after Buyer receives the Association Information or prior to Closing, whichever occurs first, and Closing Agent shall refund the Earnest Money to Buyer. If Buyer does not receive the Association Information, Buyer may terminate this Agreement at any time prior to Closing and Closing Agent shall refund the Earnest Money to Buyer.

3. In the event that the property is located within an HOA, Closing is further subject to Buyer's receipt of the attached HOA Questionnaire to be completed by an authorized manager or representative of the HOA. If Buyer does not receive the completed HOA Questionnaire eight (8) business days after mutual acceptance of the Agreement, Buyer shall have the right to terminate this Agreement and Closing Agent shall refund the Earnest Money to Buyer. Any fee associated with obtaining the HOA Questionnaire shall be the Seller’s responsibility. If there is no HOA, the Seller may check and initial the box at the top of the HOA Questionnaire indicating such.

4. Buyer shall have the right to terminate this Agreement prior to Closing should rental or leasing of the Property without the need for application or approval be prohibited or limited under Association Information or applicable laws, and Closing Agent shall refund the Earnest Money to Buyer.

5. Notwithstanding anything to the contrary herein, in the event the owner or tenant of the Property is required per the terms of the Association Documents to maintain membership of a golf facility, tennis facility, country club or other recreational facility, Buyer shall have the right to terminate this Contract and Escrow Agent shall refund the Deposit to Buyer.

6. In the event the property is located within an HOA and has open HOA violations, Seller must remedy all violations prior to Closing. In the event Seller does not do so, Buyer will have the right to terminate the Contract and Closing Agent shall refund the Earnest Money to Buyer.

7. Seller shall close any open permits or correct any permit violations prior to the Closing Date. In the event Seller does not do so, Buyer shall have the right to terminate the Agreement and Closing Agent shall return the Earnest Money to Buyer. Seller represents that Seller has no knowledge of any improvements to the Real Estate for which required initial and final permits were not obtained; Seller’s representations shall survive the Closing.

8. Seller represents and warrants that the property is not condominium ownership. Buyer shall have the right to terminate this Contract prior to Closing if the Property is found to be a condominium in the legal description, deed or under Association Information, and Earnest Money Deposit shall be released to Buyer without further written authorization from Seller.

9. Notwithstanding anything to the contrary herein, as a condition of Closing, in the event Seller is currently leasing the Property, the lease among Seller and its tenant(s) will be terminated effective as of Closing; Seller will have performed all of its obligations thereunder and Buyer shall have no responsibility for any obligations under any lease including return of Seller's tenant(s)' security deposit or any prepaid rents; Buyer shall be indemnified and held harmless under any such lease; and Seller and Seller's tenant(s) shall execute evidence of the foregoing in a form satisfactory to Buyer in its sole discretion prior to Closing.

10. Notwithstanding anything to the contrary herein, Buyer will not assume or enter in to any lease agreements for items including but not limited to solar panels, security systems, propane tanks, or water softeners. If Seller currently has leased items on the property, Seller shall terminate the lease prior to Closing. Seller shall be responsible for repairing any damage due to the removal of leased items prior to Closing.

11. Within 5 days after mutual acceptance of the Agreement, Seller shall deliver to Buyer a Seller Disclosure Statement. If Buyer does not receive Seller’s Property Disclosure Statement, Buyer may terminate this Agreement at any time prior to Closing and Closing Agent shall refund Earnest Money to Buyer.

12. Buyer reserves the right to schedule multiple inspections and investigations of the property prior to the expiration of the Option Period, and Seller will provide reasonable access to Buyer’s inspectors, personnel or representatives.

13. In the event there is a well and/or septic system on the property, Seller shall obtain at Seller’s expense a well water test stating that the well delivers not less than five (5) gallons of water per minute and including a bacteria and nitrate test and/or a septic report from the applicable County Health Department, a Licensed Environmental Health Practitioner, or a licensed well and septic inspector, each dated not more than ninety (90) days prior to Closing, stating that the well and water supply and the private sanitary system are in proper operating condition with no defects noted. Seller shall remedy any defect or deficiency disclosed by said report(s) prior to Closing, provided that if the cost of remedying a defect or deficiency and the 3304 95th Drive Se, Lake Stevens, WA, 98258 09/21/2020 DocuSign Envelope ID: 24DD7F7A-F964-48F3-9283-92AAC2AA5EC1 By:__________________________________________________________ Date: Seller Acceptance: Signature:_____________________________________________________ Date: Print Name: ____________________________________________________ Signature:______________________________________________________ Date Print Name: Buyer Addendum - Page 2 of 2 cost of landscaping together exceed $3,000.00, and if the Parties cannot reach agreement regarding payment of such additional cost, this Agreement may be terminated by either Party. Additional testing recommended by the report shall be obtained at Seller’s expense.

14. If Buyer determines, in Buyer’s sole discretion, that the Property is not acceptable to Buyer, Buyer may terminate this Agreement by delivering written notice of such election to Seller prior to expiration of Inspection Contingency Period. If Buyer timely terminates this Agreement, the Earnest Money shall be returned to Buyer, thereupon, Buyer and Seller shall be released of all further obligations under this Agreement.

15. In the event the home is new construction, Seller must provide certain warranties to Buyer effective on the date of Closing. Builder warrants to the first purchaser and subsequent purchasers that: (1) during the one-year period from and after the warranty date, the dwelling shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards; (2) during the two-year period from and after the warranty date, the dwelling shall be free from defects caused by faulty installation of plumbing, electrical, heating and cooling systems; and (3) during the tenyear period from and after the warranty date, the dwelling shall be free from major construction defects.

16. As a condition of Closing, Seller must remove any playset, swing set and/or trampoline, if applicable, prior to closing.

17. Seller must maintain the property in its condition as of mutual acceptance of the Agreement. Seller agrees to leave the Property in broom clean condition. All refuse and personal property that is not to be conveyed to Buyer shall be removed from the Property at Seller’s expense prior to delivery of Possession. On the date of Closing, Buyer shall have the right to conduct a walkthrough to inspect the Property, fixtures and included Personal Property prior to Closing to verify that the Property, improvements and Included Items are in substantially the same condition as of the mutual acceptance date.

18. Notwithstanding anything to the contrary herein, if Buyer is in default under this Contract and such default is not cured within five (5) days after written notice of such default is given by Sellers to Buyer, and provided that the Sellers are not in default, the Seller’s sole and exclusive remedy shall be to terminate this Contract by giving written notice thereof to Buyer, whereupon the Deposit shall be retained by Sellers as liquidated damages and neither party shall have any further liability or obligation to the other.

19. If any deadline falls on Saturday, Sunday or federal holiday, such deadline shall be extended to the next day that is not a Saturday, Sunday or Federal holiday.

20. Time is of the essence. In the event the Seller fails to close by the scheduled date of Closing for any reason and Buyer and Seller cannot agree on a mutually acceptable extension of the Closing Date, Buyer may terminate the transaction and Escrow Agent shall refund Earnest Money to Buyer.

21. Notwithstanding anything to the contrary in Section f of the General Terms of the Agreement, Possession shall be delivered to Buyer at the time of Closing and not after. The portion of Line 75 that states "Buyer shall be entitled to possession at 9:00 p.m. on the Possession Date" is stricken from the Agreement.

22. Buyer shall have the right to assign its rights and obligations under this Contract to any affiliate of Buyer or other entity under management by Buyer without the consent of Seller; provided, however, that any such assignment shall not release Buyer from its obligations hereunder.

23. Buyer may assign its rights (but not its obligations) under this Contract to a qualified intermediary as defined in (and as part of a tax-deferred like-kind exchange under) Internal Revenue Code Section 1031 and the Treasury Regulations thereunder. Said exchange will be closed without cost, liability or delay to the Seller. If Buyer so elects, and at Buyer’s reasonable request, Seller shall perform such actions and execute such documents as Buyer believes to be necessary or appropriate to facilitate the exchange.

24. By signing this Addendum, Buyer and Seller each acknowledge that they have read and understand all provisions of the Addendum and have entered into this agreement voluntarily. Buyer Acceptance: \s1\ \d1\ The Affiliated

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I would walk away.   All slanted to them.  Multiple inspections.  Sounds like the stick and carrot. They dangle a big carrot on the end of a inspections stick and make you do all kinds of repairs and if they aren’t happy they walk away and get back escrow and you  are out the expense of all the repairs. 
 

I agree they are a rental agency and they are already lawyered up because they probably have to always sue tenants

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Didn't read...  That's what I would pay my attorney to read and explain to me.

Any time WoBG and I ever purchased or sell a home we use an attorney.   And we then have him explain wtf it all means section by section. 

Real estate law is not my thing... and I know that I need to be helped.  We found a guy we like and used him when needed.

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2 minutes ago, jsharr said:

I would walk away.   All slanted to them.  Multiple inspections.  Sounds like the stick and carrot. They dangle a big carrot on the end of a inspections stick and make you do all kinds of repairs and if they aren’t happy they walk away and get back escrow and you  are out the expense of all the repairs. 
 

I agree they are a rental agency and they are already lawyered up because they probably have to always sue tenants

Yep.  They are Home Partners of America LLC.

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1 minute ago, Dottles said:

I did but it just seems effed if you are the buyer.  I saw nothing about seller issues.

They negotiate for the buyer so they are going to try to make sure that anything and everything that needs repaired is repaired at your expense before they buy the house and turn around and lease it back to some poor sucker 

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I would highly recommend a real estate lawyer..  My sister recently sold my Mom's co-op apartment, and both sides had a lawyer even though she was selling it a neighbor she knew well and it was the friendliest deal you could imagine.  There are often local requirements or informal practices that can make a big difference and the lawyer will know these sorts of things.

 

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They are throwing offers out there willy nilly to tie up properties before the general public can tour them. They can back out at any time for any reason. The carrot is the above asking offer. 

Let the property be seen by the public. Or counter back with no inspection & close in 2 weeks. Mark through every addendum they give you. And add $20k for the aggravation

*they are not going to buy your house at the offer price

**what did your agent say?

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16 minutes ago, Scrapr said:

Let the property be seen by the public.

I've had 27 tours of my place in the last 4 days so the public has seen it.  And they've offered cash, an aggressive closing date (they want to close in 3 weeks), and $25K above asking price with an elevator clause.  Honestly, that's par for the rest of the real estate around here.  And I'm not required to pay for anything but any possible septic issue that may pop up (outlined in point 13 above) -- which won't happen -- because I already paid for my inspection and it passed.  If they want to try to nickel and dime me after their inspections they pay for -- they can kiss my ass.

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How many offers? I would worry they stretch you out to take the house off the market. You decide F it I'm not dealing with you. Go back to market & you have sale fail marked on you in a hot market. People look more closely to find the "gotcha" Extra special inspections. Stretched out close
 

My house goes on the market Friday. Pictures today. Probably evaluate offers on Monday. If there are 27 tours I'm going to be drinking a lot of coffee at the LCS. But i got to take Eos so it better be good weather. I'm saving a bunch of errands for the weekend

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6 hours ago, Dottles said:

I've had 27 tours of my place in the last 4 days so the public has seen it.  And they've offered cash, an aggressive closing date (they want to close in 3 weeks), and $25K above asking price with an elevator clause.  Honestly, that's par for the rest of the real estate around here.  And I'm not required to pay for anything but any possible septic issue that may pop up (outlined in point 13 above) -- which won't happen -- because I already paid for my inspection and it passed.  If they want to try to nickel and dime me after their inspections they pay for -- they can kiss my ass.

Cash or mortgage, who cares?  It's all green at close.

This seems too much in their favor.  You don't have to take this. 

Walk away.

or, counter with more cash, less inspections and hire an attorney.  

I am leaning towards the walk away.  You don't have to take this shit in a hot market.

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8 hours ago, Scrapr said:

How many offers? I would worry they stretch you out to take the house off the market. You decide F it I'm not dealing with you. Go back to market & you have sale fail marked on you in a hot market. People look more closely to find the "gotcha" Extra special inspections. Stretched out close

Sadly, I can imagine some douchy companies (and people) doing this BS.

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Ideally a buyer looking for a deal would:

  • Tie up the property with an offer
  • Get the seller to pay as much as possible for inspections and BS
  • Write in lots of possibilities for you to walk away and get your earnest money back
  • Low earnest money.

This is risky in a sellers market.  A seller might just reject the offer and not play ball.

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3 hours ago, Dirtyhip said:

Cash or mortgage, who cares?  It's all green at close.

This seems too much in their favor.  You don't have to take this. 

Walk away.

or, counter with more cash, less inspections and hire an attorney.  

I am leaning towards the walk away.  You don't have to take this shit in a hot market.

Well, an attorney is happening for sure. But getting to walk away is harder because my wife is on the title and she's leaning towards it. And time is somewhat of a concern. Cash is typically 7-10 days faster. That's really the driving force here. We have a short turn around time.

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1 minute ago, Dottles said:

Well, an attorney is happening for sure. But getting to walk away is harder because my wife is on the title and she's leaning towards it. And time is somewhat of a concern. Cash is typically 7-10 days faster. That's really the driving force here. We have a short turn around time.

My experience in 7 real estate transactions, money is transferred at the time of closing.  Not before and not after.  Cash or check goes from one hand to the other.  Checks clear in less than 24 hours and cash deposited is usually not available until next day.  And no one really means cash.  It's either a check from them or a check form someone else.  So what is the difference?  The only advantage of cash in a real estate transaction is no credit approval is needed.  Everyone I know of gets pre-approval with documentation from lending sources before they start their search.  You are not dealing with an everyone.

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2 hours ago, Dirtyhip said:

It’s all cash at close.

At our closing WoBG met with our lawyer and our real estate agent first.  We signed a LOT papers.  

Then the buyer arrived, and WoBG speaks up...  "Show me the money!".     OMG you could have heard a pin drop.  Our lawyer, real estate agent and I just looked at her with WTF written all over our faces.  After the closing I tell her,  you can say that AFTER they sign all the paper work.   :wacko:

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7 minutes ago, Bikeguy said:

At our closing WoBG met with our lawyer and our real estate agent first.  We signed a LOT papers.  

Then the buyer arrived, and WoBG speaks up...  "Show me the money!".     OMG you could have heard a pin drop.  Our lawyer, real estate agent and I just looked at her with WTF written all over our faces.  After the closing I tell her,  you can say that AFTER they sign all the paper work.   :wacko:

Ahhh, this post made my day. :D

 

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7 minutes ago, Bikeguy said:

At our closing WoBG met with our lawyer and our real estate agent first.  We signed a LOT papers.  

Then the buyer arrived, and WoBG speaks up...  "Show me the money!".     OMG you could have heard a pin drop.  Our lawyer, real estate agent and I just looked at her with WTF written all over our faces.  After the closing I tell her,  you can say that AFTER they sign all the paper work.   :wacko:

HAHA

Buyers are on edge on closing day.  It's a big amount of money.

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2 hours ago, Bikeguy said:

At our closing WoBG met with our lawyer and our real estate agent first.  We signed a LOT papers.  

Then the buyer arrived, and WoBG speaks up...  "Show me the money!".     OMG you could have heard a pin drop.  Our lawyer, real estate agent and I just looked at her with WTF written all over our faces.  After the closing I tell her,  you can say that AFTER they sign all the paper work.   :wacko:

That's sooooo funny.

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1 minute ago, Scrapr said:

Fast close is nice because if they are inspecting they gotta turn & burn. Of course that also doesn't give you much time to get rid of the dead bodies in the crawl space either. 

25% bump about pays the real estate commision I would think

Almost. But it does pay off my new car. So let's just see how this plays out. 

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