Short Sale Resources

Below are a few important disclosures regarding what can be expected when our office provides short sale representation to a seller:

	1.	We will start collecting information from the seller, seller's real estate agent as soon as we are retained.  The collected information will start the short sale package ("package").
	2.	The package will not be complete until the buyer's home inspection is conducted and the purchase and sale agreement is fully executed.  It is important that buyer completes these two items as soon as possible after the offer is accepted.
	3.	The buyer's home inspection must be complete within 5 business days of the accepted offer.
	4.	The purchase and sale agreement must be signed within 7 business days of the accepted offer.
	5.	The buyer's financing contingency must be "21 days after lien holder(s) short payoff approval."
	6.	The closing date must be "30 days after lien holder(s) short payoff approval."
	7.	We will submit the seller's complete package for approval to their lenders within 24 after we have the complete package.
	8.	In most every case we will not have an answer from the lender before 30 days.
	9.	Seller will not pay buyer's closing costs.
	10.	Seller will not pay for repairs, homeowner warranties or other such costs.
	11.	Seller will only accept one offer and we will only submit one offer to the bank. All subsequent offers will be back up offers only.
	12.	The offer must be made using our "Offer to Purchase Real Estate" form.
	13.	We will need the following items to complete the package:  - Updated letter of pre-approval  - Deposit check  - Proof of down payment  - Short Sale Acknowledgement Form  - Mandatory Agency disclosures  - Lead paint addendum
	14.	Buyer must make a good faith deposit of at least 3% of the purchase price and at least $1,000.00 must be tendered with the offer.  The certified bank check must be tendered with the signed purchase and sale agreement.
	15.	All buyer contingencies except the buyer's financing contingency must expire within 10 days after acceptance of offer.
	16.	The cost of personal property cannot be included in the sale.
	17.	Buyer cannot be a relative of the seller.  Any family relationships to the seller must be disclosed to the seller's lender.
	18.	If the property is served septic system the sale must comply with Title 5 of the Code of Mass Regulations. If the seller does not currently have a passing certificate it will be the buyer's responsibility to obtain the certificate.  If the system fails or conditionally passes the buyer can elect to repair the system or receive a return of their deposit and release from all obligations.
	19.	Smoke/Carbon Monoxide Certificate:  It is the Buyer's responsibility to obtain a smoke/carbon monoxide certificate 10 days prior to closing. It is also the Buyer's responsibility to pay for any and all costs associated with obtaining these certificates. This includes, but is not limited to, smoke/carbon monoxide detectors and wiring if needed. Therefore, the Buyer needs to conduct their own due diligence ahead of time. This must be written into the offer.
	20.	Once the package is submitted to the lender we will continue to follow up with them often and on a regular basis.
	21.	Although we have a very high success rate with obtaining approval, it is not guaranteed.
	22.	In the event that the seller is unable to provide clear title to the property under the terms of the purchase and sale agreement the buyer will entitled to receive a return of their deposit and release from all obligations.
	23.	Be aware that some lenders require detailed information about the buyer to be submitted with the closing package.
	24.	The buyer's settlement agent or closng attorney is responsible for obtaining final approval of the settlement statement from the short sale lender.