Which Sales Contract Is Used for a Hud Property
Line 5 – Closing costs up to 3% of the purchase price. Closing costs can be found on page 2 of the expiry and renewal agreement. Line 6a – Commercial agent commission up to 5% of the purchase price. Line 6b – N / ALine 7 – Net to HUD – Line 3 minus lines 5 and 6. Please ensure that your calculations in this line are correct. Line 8- Type of buyer: Investor or owner-occupier. Misrepresenting a buyer as an owner is a SERIOUS crime that can constitute fraud and can lead to an investigation by the Inspector General`s office into the broker, agent and buyer. Leave the discount amount empty. (Discounts only for OND/TND and non-profit buyers) Line 9 – Sales transactions are completed no later than 45 days after acceptance by the seller. Properties can be closed in less than 45 days, but 45 days MUST be listed on the contract.
If the closure is not completed within 45 days, a renewal fee will apply. Line 10 – Backup Offers – Not Applicable – You should only submit a purchase contract package if you are the accepted bidder. Order packages that do not come from bidders will be discarded without notice. Line 11- If the property was built before 1978, please mark line 11 “is connected”. Always mark that another addition is “attached”, each contract package must also contain the other required supplements. Line 12 – BUYERS HAVE A FIRST CONTRACT HERE – Please check if ALL buyers have initialized this field before sending the contract package. Line 13 – Buyer Information: Please ensure that all information is written in the correct fields. A DocuSign purchase agreement is sent by email to the following address: These fees are usually paid by the buyer. These are all items that the lender needs, but are not always paid to the lender.
Buyer selects closing agent – BSCA must execute the BSCA closing addendum included in the purchase agreement. Once the contract is concluded, it will be sent by e-mail to the following address: Line 1 – Fill in the name(s) and address of the buyer(s) of the property, including city, state and zip code. Enter the HUD file number in the field provided and write the confirmation number on the spot. These contracts are not transferable. The buyer whose social security number was used in the advertisement must appear on the contract. Line 2 – Enter the buyer`s name and legal style. The hud closing agent will prepare a deed of transfer of ownership according to this line. This line should not be left blank or “remains to be determined”. Line 3 – Enter the purchase price (the cash prize) and the earnest Money deposit. Deposit cheques must be issued to the broker and must be in the possession of the selling broker BEFORE an offer is placed. Serious cash deposits should take the form of a certified cheque, cash cheque or money order.
o Sale price up to $49,999 Serious money deposit = $500,000 Sale price $50,000 and more Serious money deposit = $1,000 Vacant lot: 1/2 of the purchase price of the property. Line 4 – Type of financingIf your buyer applies for FHA 1 financing. Properties listed in: 203 (b) 2. IE Listed Property: 203(b) with Repair Escrow K.M. Minemier & Associates – Once KMM`s purchase agreement is ratified, DocuSign will distribute the signed contract to all signatories via email. Sales agent – The purchase contract must be checked for complete accuracy and then emailed after approval. Previously, it was used for almost all transactions involving a buyer and seller, including cash settlements. Knowing how to enter into a HUD purchase agreement (also known as HUD-9548) is an important skill for any sales representative. Below is a collection of tips and advice to help agents enter into a HUD purchase agreement and its supplements. The easiest starting point is to visit the Asset Manager (AM) website and search for the form page.
Here you will find the contractual and complementary forms. In many cases, they are easy to fill out, a type of questionnaire that ensures you fill in each field accurately. Here is a guide for each line of the contract. Line 1: Enter the name of the buyer and the full address of the property. Be sure to enter the county. Line 2: Enter the name(s) and style in which to use the tile. Please adjust the name exactly as in line 1 and the STYLE you adopt as your title (single, married, etc.) Line 3: Enter the bid amount and the amount of serious money ($500 if $50,000 or less or $1,000 if $50,001 and more) and enter that it is held by the HUD. Please send this in a cashier`s check or money order (NO personal checks) paid on order from HUD. Line 4: Make sure the appropriate box is checked for the type of financing your buyer receives and in accordance with the seller`s offer. If FHA 203(b) repairs the escrow, check “This mortgage includes a repair trust agreement in the amount of $___” and fill in the amount. Also leave the field blank or enter to determine (to be determined) the three fields for the down payment, the amount of the mortgage loan and the number of months.
Line 5: Enter the amount of the financing/closing fees indicated on your submission. HUD pays closing costs up to 3% of the purchase price. If it is inserted in line 5 of the HUD purchase agreement during the electronic submission. What are the reasonable and usual costs that the seller pays? Note: The closing fees paid by HUD have changed with the Buyer Select Closing Agent program. If the purchased property is located in one of these areas, HUD will no longer pay the billing fee. In some non-purchasing areas, HUD closing agents will continue to be used and these fees will be paid. Below is a list of closing fees paid by HUD: STEP 3 – The sales agent has until the next business day between receipt of the DocuSign envelope and the completion of the electronic signature process. Ultimately, it is the responsibility of the sales agent to ensure that this contract is signed by all parties. Before a contract can be sent for an electronic signature, real money and financing documents must be uploaded. 2.
Conditions of SaleThe sales page is attached to the purchase contract and must be signed by all buyers.3. Copy of Earnest Money depositA copy of the money order or certified cheque is a mandatory part of the sales package. Earnest Money is owned by the selling broker. A copy of the serious money payment slip to the broker`s account is also acceptable. Sale price up to $49,999 Serious money deposit = 500 $Prix of sale $50,000 and more Serious money deposit = $1,000. .