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