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Why you may need to fill in an amount for seller’s expenses

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02/22/2017 | Author: Legal Staff

If your buyer has a Federal Housing Administration, Veterans Administration, or similar government-backed loan, Paragraph 12A(1)(b) in the One to Four Family Residential Contract (Resale) may be used to cover expenses that your buyer may be prohibited from paying. Over time, many of these government-backed loan programs have reduced or eliminated the prohibited fees referred to in the contract. As such, check with your buyer’s lender and title company to determine if any such fees will be assessed in the transaction; if so, the parties can negotiate an amount to be included in this paragraph accordingly. Your buyer should be aware that if the lender assesses one of these fees, and there is “$0” in Paragraph 12A(1)(b) or it is left blank, the contract may fall through unless the seller or lender agrees to pay it.

Categories: Legal
Tags: fha, va loan, seller's expenses, paragraph 12

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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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