Home Buying in 89123>Question Details

VBR, Home Buyer in 89123

My friend got Counter offer with following terms on shortsale property from seller agent. Is it advisable to go forward with this counter offer?

Asked by VBR, 89123 Tue Oct 13, 2009

1. Property is conveyed “AS IS/WHERE-IS” condition. NO warranties expressed or implied as to the condition of the property and sellers limits of liability to make any repairs to the property is zero. Seller will not complete or compensate for any repairs.
2. Buyer is responsible to turn on any utilities to satisfy any inspections deemed necessary.
3. buyer is responsible to pay Appraisal, HOA contributions, HOA transfer fee
4. Buyer to sign Seller Agent as is waiver.
5. This agreement is contingent on financing only during the due diligence period.
6. If buyer fails to close on or before COE, any penalties, assessments, fines, liens additional costs will be paid by buyer, no exceptions.

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7
Voices Member’s answer
Waste of time. Banks cannot do a short sale without perptrating a fraud / See FAS 140 - and GAAP defintion related to transferring assets and control of assets allegedly sold to an investor at time of orgination. They willmore than not waste your time!

MSoliman
0 votes Thank Flag Link Thu Oct 15, 2009
1. Make sure you have a professional inspection completed. Check their reviews online.
2. illegal, but you see it all the time... if you want the house, turn on the utilities.
3. Completely legal, and I do see this commonly.
4. See # 1.
5. Check your due diligence period and make sure it's enough time for your lender... if it's not request an extension up-front... some banks will only grant an extension when the day has come and it is needed.
6. ...how long is your set close of escrow date? Is it enough time for the lender? Should be at least 3 weeks, recommended (unless this is a cash deal). Also, you'll often see the seller fail to close on or before this day, don't be surprised.


http://www.sellstatedeluxe.com
1 vote Thank Flag Link Tue Nov 6, 2012
Your agent should be explaining all the terms of this counter to you and what if any are the disadvantages to each item.
I had a counter similar with a company that wanted my client to release his Ernest money after 2 days of accepted contract along with other items that were potentially harmful for my client. And to add to this the seller was going to pay an additional fee to my broker if my client signed on the dotted line. Now that would mean I as the agent could gain more of a commission..
However, a reputable agent should always put the clients needs first and foremost..... Of course I recommended my client walk away from a poorly favored contract .

Best Regards,
Helene M Moore
Windermere Prestige Properties
702-275-2192
0 votes Thank Flag Link Mon Mar 10, 2014
"5. This agreement is contingent on financing only during the due diligence period."

I would be signing this agreement with this clause in it.

David Cooper Investor 702-499-7037
Free Bank-Owned Foreclosure List
http://www.lasvegaswinner.org
0 votes Thank Flag Link Fri Nov 2, 2012
It is all fairly standard. The only items I would be concerned with is #5 and #6. If you agree to #5 you need to get with your loan officer and make sure your financing is solid otherwise you could potentially lose your EMD and be liable for items in #6. Secondly, I would try to counter #6. This could be costly to you the buyer if you fail to get your financing or fail to close for any other reason.

Did you speak with your buyer's agent? They should be able to advise you on this.

PS. Also before signing you need to review the "Seller Agent's waiver" to see if you are willing to accept those terms as well.

Best Regards,
Robert Adams
Broker/Salesman
The Adams Team at
Rothwell Gornt Companies
C:702-349-9175
O:702-932-8813
F:702-932-8826
RobertAdams@LVrealestateHELP.com
http://www.LVrealestateHELP.com
0 votes Thank Flag Link Wed Oct 31, 2012
I'm going to disagree with Bill. I don't think this is "typical language" and don't think it's from the lender. It looks like launguage written by the seller's agent. I do agree with Bill that the advice should be coming from the buyer's agent. I've never seen another market or time where having an experienced and knowlegable agent representing you is so absolutely critical.

Personally, I would not agree to those terms unless I was buying cash. Even then I would want #6 clarified because it doesn't make sense as written.
0 votes Thank Flag Link Tue Oct 13, 2009
This is typical language whenever a lender is involved in the sale of a property. Your friends agent should be the one to answer this question as there are a lot of variables that I do not know. Typically lenders put language into the contrat that is favorable to them and limits their liability and ensures the finality of the sale. Your friend has to decide whether these terms are acceptable or not. My experience with lenders is that there isn't a lot of room usually for negotiations. You either mover forward or not and they typically don't care.
Have your friend talk to her/his realtor and get advice more specific and timely than I can give here.
0 votes Thank Flag Link Tue Oct 13, 2009
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