hollykhuynh, Home Buyer in Silver Spring, MD

The remark in the listing has this "Pursuant to Section 28 of the Real Estate Purchase Addendum, this document is subject to all terms and conditions

Asked by hollykhuynh, Silver Spring, MD Mon May 7, 2012

set forth in the Real Estate Purchase Addendum", what does it mean?

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9
John Souerbry, Agent, Fairfield, CA
Tue May 8, 2012
holly - just google "fannie mae form Real Estate Purchase Addendum" and a PDF of the document should be one of the first responses to click on.
1 vote
hollykhuynh, Home Buyer, Silver Spring, MD
Tue May 8, 2012
Thank you Lenore, John S. and John C. for all your help.
Yes, the properties are from Fannie Mae. But how can I find out what section 28 is? I have send email to listing agents (few agents), but none of them respond to the question.

"Fannie Mae could approve the Purchase Contract with one set of terms and then kill the deal later with different terms in the Real Estate Purchase Addendum." This make me just want to avoid them all.

Thanks for all your help,
1 vote
John Souerbry, Agent, Fairfield, CA
Tue May 8, 2012
Lenore - thanks for the explanation, I guess the real issue is that Section 28 states that the Real Estate Purchase Addendum takes precedence over the Purchase Agreement when there is a conflict between the two documents. Therefore, it really doesn't make sense to do the Purchase Agreement and Addendum separately. Fannie Mae could approve the Purchase Contract with one set of terms and then kill the deal later with different terms in the Real Estate Purchase Addendum.
1 vote
John Juarez, Agent, Fremont, CA
Tue May 8, 2012
It looks like you are buying an REO property and the REO seller has provided you with their Addendum to sign. That is very common. We cannot tell you what it means. To begin with, we do not have a copy. Secondly, if we had a copy and expressed an opinion on it for you or tried to explain its meaning to you we would be exceeding our competency by trying to explain a legal form. That is attorney work. While we might think we know what we are doing, the reality is that you must take the issue up with your agent or an attorney to get the explanation that you are seeking.
1 vote
John Souerbry, Agent, Fairfield, CA
Tue May 8, 2012
It means you need to read Section 28 of the Real Estate Purchase Addendum. Since it's referenced in the listing, it should be available with the seller's disclosures. It could mean very little, but it could have a major impact on the terms of sale.
There is no form in California called a "Real Estate Purchase Addendum" - at least there is no such standard California Association of REALTORS(R) (CAR) form with that name. Lenore may be referring to a set of forms used in the Riverside County area that I'm not familiar with, as there are several areas in the state where local REALTOR(R) associations have developed a local set of forms for standard transactions (here in Silicon Valley we use both CAR forms or our local PRDS forms, whichever supports the specific transaction best).
The CAR form Lenore may be referring to is CAR Form ADM, which is simply titled "Addendum." It has no section numbers on it, though I always add numbers to each entry when I use it.
I recommend you ask the listing agent for a copy of the document they reference in the listing and work with a local agent, like Lenore, who knows the local forms and processes.
1 vote
Lenore Cordes, Agent, Murrieta, CA
Mon May 7, 2012
Hi Holly,

The Real Estate Purchase Addendum is a contract in addition to the standard Real Esate Sales Contract. In California, it is called the "Real Estate Purchase Agreement and Joint Escrow Instructions" or RPA for short.

Most likely the property in question is owned by Fannie Mae. Fannie Mae has their own contract, which they call the "Real Estate Purchase Addendum" and its terms and conditions supercede any conflicting with the original purchase contract.

If you have any other questions, or want more information, feel free to contact me.

Lenore Cordes
951.837.7395
Lenore@LenoreCordes.com
1 vote
hollykhuynh, Home Buyer, Silver Spring, MD
Tue May 8, 2012
Thanks John and Lenore, I got it.

Much Apriciated
0 votes
Lenore Cordes, Agent, Murrieta, CA
Tue May 8, 2012
Holly,

If you are working with an agent, you can get a copy from them. If you aren't, give me the property addresses in question and your email address, and I can email you a copy of the addendum(s). :)) They are normally included in the MLS supplements, that only agents have access to.

Happy house hunting!
0 votes
Lenore Cordes, Agent, Murrieta, CA
Tue May 8, 2012
I guess my answer was not too clear, since some of my colleagues did not understand it.

The Real Estate Purchase Addendum is the contract that an REO seller, like Fannie Mae, requires in addition to the normal purchase contract, which is called the RPA in California (and I referred to it in my first answer).

Fannie Mae requires that this addendum be filled in and submitted along with the RPA. Other REO sellers require that their addendum be used as well, however, it is normally sent after the initial offer is conditionally accepted.

Your agent can help you go through the process.

Does that help make it any clearer?

Lenore
0 votes
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