Home Buying in Wilton Manors>Question Details

Ed, Home Buyer in Wilton Manors, FL

Is it common practice to pay additional payments on a contract after offer is accepted.....referencing a condo purchase with cash?

Asked by Ed, Wilton Manors, FL Sun Mar 18, 2012

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5
As Alma pointed out, it depends on what you are purchasing.

In two recent short sales with Bank of America, extra payment was required from the buyer so the bank would "grant deficiency waiver." The amount, $92,000 will not appear anywhere as the acquisition cost of the house.

There is way too much we do not know about your specific situation to provide precise responses. Your real estate professional will be able to guide you through this process.

Best of success in acquiring your new home,
Annette Lawrence
Broker/associate
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
0 votes Thank Flag Link Mon Mar 19, 2012
What type of transaction? We have 3 types right now, Short Sales, Bank Owned/REO and regular sales where an owner has equity.

If it's a bank owned or regular sale your contract will control your costs and you should be able to enforce the terms of your contract pretty easily.

If it's a Short Sale, it's not unusual to have extraordinary costs or you may not be able to close. Even if your Short Sale contract says the condo/HOA fees to bring it current will be paid by the Seller, some lenders will not allow more than one years back due and also limit the HOA/Condo attorney fees, too. Most Short Seller will simply sell to another buyer if you're not able to pay the extraordinary fees required.

All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes Thank Flag Link Sun Mar 18, 2012
Thanks Alma, this was a regular resale.....no bank owned, shorts sale or foreclosure. I've never seen this before in previous contracts....just my first in Florida so thought maybe they do things differently.
Flag Sun Mar 18, 2012
if you have a contract you should only be paying what is on that contract. On a condo at closing you would expect to prorate taxes and HOA fees thats it.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Mar 18, 2012
There are instances where additional payments could be required in excess of the contract price. For example, if there are assessments due the condo association and your contract did not specify that the seller is responsible any and all assessments, then you could be obligated pay those assessments after closing.
0 votes Thank Flag Link Sun Mar 18, 2012
Thanks Ken, this is a Coldwell Banker contract......could it be a practice of theirs. They also cashed an earnest check to place an offer even after knowing that the contract was not going forward. So I had to wait a month for a reimbursement check.... I've put contracts on properties before and if they didn't go thru for one reason or another (before an inspection was even conducted) they never really cashed the earnest money!
Flag Sun Mar 18, 2012
Payments? As in multiple payments? No, uncommon. Is it common to have to pay more than the contracted amount? No. Is it common for a seller to reduce from the contracted amount after a home inspection? Oh yes, very common.
0 votes Thank Flag Link Sun Mar 18, 2012
Thanks Tim! I appreciate! I thought maybe it was something different in the Ft Lauderdale area. It was Coldwell Banker that put an additional 10,000 payment after the inspection was conducted and purchase process continues. I thought this was strange, I've done contracts like this before, but never saw that before.....
Flag Sun Mar 18, 2012
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