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Actively Loo…, Home Buyer in 20910

We are attempting to purchase a short sale home, that is co-owned by two people. When we received the disclosure document, signed by one of them.?

Asked by Actively Looking, 20910 Tue Nov 24, 2009

We are attempting to purchase a short sale home, that is co-owned by two people. When we received the disclosure document, signed by one of them. Does this mean that the other owner has not agreed to place the house for sale. Do both owners have to sign the disclosure document, or do they simply have to both sign the contract to put the house up for sale?

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This is a great question for your settlement attorney. If you and both sellers have signed the contract, then I believe that you are ratified. Of course, this doesn't mean anything until the bank agrees to the short sale, but that's not your question.

Your contract should have a two page notice titled "Notice to Buyer and Seller of Buyer's Rights....". Take a look at this addendum. Among other things, it describes the buyer's rights in the event that the seller does not provide disclosures at the time you sign the contract. Most of us never pay attention to this language since disclosures are pretty much always provided when you write the contract. If disclosures are not provided, then this notice says that the buyer can rescind the contract and have the escrow deposit returned within 5 days of receipt of the disclosures.

So what does this mean to you? Not withstanding other issues with your contract, I believe that you are fully ratified even without the other seller's signature on the disclosures. However, assuming that you don't receive disclosures before settlement, I believe that you could void (rescind) the contract at anytime and argue that you never received disclosures as required. Your argument would be that since only one seller signed the disclosures, you did not receive completed disclosures. This may sound like a technicality, but it's definitely legit if the other owner is aware of issues with the home and hasn't disclosed them.

I believe that you are OK, but the sellers are at risk in this case. Of course, I'm not attorney so don't treat this comment as professional, legal advice. Run it by your settlement attorney to get the right answer.

Good luck.
Web Reference: http://mocorealestate.com/
1 vote Thank Flag Link Wed Nov 25, 2009
Your lender will likely want to see a fully executed sales contract, signed by both parties -- and that includes the disclosures. If one party has not signed the disclosures, it could be an oversight -- or it could mean that the two owners disagree on what one owner has written in the disclosure document. Suggest to their agent that they each fill out separate copies.
Web Reference: http://www.tamara4homes.com
1 vote Thank Flag Link Tue Nov 24, 2009
I just went through this with a short sale I was providing financing for. Both sellers must sign the disclosures and all settlement docs as well.
0 votes Thank Flag Link Tue Mar 2, 2010
Most short sales take time. Sounds like this one will take lots of time. Have a back-up plan, imo.
0 votes Thank Flag Link Sun Jan 24, 2010
All the answers you received are good information but as you have been told.... this disclore/disclaimer is part of your contract and does need to be signed by all parties that are part of the transaction. You are protected with no loss of your earnest money deposit to pull out at anytime if this is not signed before settlement and actually it should be signed NOW. The second owner on the note of this home does have to be at settlement unless they have given power of Attorney to the other owner. In which case the Title Compnay handling your settlement would need to be provided this document.
I have handled many short sales and you need to know your rights going in as a buyer.
0 votes Thank Flag Link Sun Jan 24, 2010
Both parties have to sign and agree to a sale. . .unless they have an LLC or a TRUST.. then only one person is designated to sign a legal contract to sell the property.
0 votes Thank Flag Link Wed Jan 20, 2010
I have a similar situation with a buyer client right now. In our case it was not necessary for the 2nd person to sign the disclosure document. Although both individuals are on title, only one of them is on the mortgage. However, they both must sign the listing agreement to sell the home.
0 votes Thank Flag Link Tue Jan 19, 2010
All parties on title need to provide written permission to sell the property unless someone has power of attorney.
I would ask your Realtor and/or attorney for a copy of the title profile.
0 votes Thank Flag Link Wed Nov 25, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
First of all do you have an agent and a signed contract for a property. If so that is your agent.

I reccommed to e-mail the honest agent and long time friend that lives local.

harold.countee@longandfoster.com

You will be so happy that you met him and have peace of mind. Tell him that Kevin in Florida sent you!
0 votes Thank Flag Link Tue Nov 24, 2009
That is a question you should be asking to your Realtor. . if don't have one, please get one. . you are going to be taken for a ride that may take you months to realize it.

Short Sale negotiations are very perilous for the buyer because of the uncertainty.
The least you should have is a complete ratified contract
0 votes Thank Flag Link Tue Nov 24, 2009
The disclosure statement is required to be signed by both owners of the property to be valid. It is part of the offer/contract which must be signed by all owners of the property. I advise you to use the services of a buyer's agent so that you can get full representation and advice to these questions and more. If you do not have an agent already, I would be happy to work with you.

Gary Mather
Long and Foster
Silver Spring/White Oak
301-388-2662
0 votes Thank Flag Link Tue Nov 24, 2009
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