My buyer client wants to include in her initial offer a requirement that the seller repair a specific item listed in the seller’s disclosure notice as in need of repair. She also wants to request that the seller contribute to closing costs. What is the best way to prepare the offer with these terms?
Paragraph 7D(2) of the TREC contracts is the appropriate section to cover a seller’s agreement to repair a specific item of the property. General phrases that do not identify specific repairs, such as “subject to inspections,” are not appropriate.
Paragraph 12A(1)(b) should be used to show the seller’s contribution to the buyer’s closing costs. This paragraph already provides for language to limit the seller’s obligation to the amount shown in the blank space. Note that the paragraph also controls the order in which the seller’s contribution shall be applied to various buyer’s expenses.
The Par 7D2 is NOT large enough to type out much for repairs and be specific! We need more room there!
I always add an additional page, and make reference to it in 7d2.
Hi Shirley, if you’re preparing the documents on Zipforms, you can write as much as you can. The system will create additional pages as you write and will add them to the end of the documents.
I would suggest you check with the lender before preparing to see how much the closing costs are and what would be allowed to be included. Typically they can include all the mortgage-related costs and possibly homeowners insurance. If the amount shown in the contract in paragraph 12A (1) (b) is higher than what is shown at closing, you may have negotiated with an amount that is too high and left money on the table. Seller is not obligated to reduce the price to offset the difference.
The first option if 7.D.2 isn’t enough space is to reference (TAR 1903) Amendment. In sec #2 more space is there for specific descriptions of repairs the Buyer wants the Seller to handle at the Seller’s expense. And if that is not enough space, in 7.D.2 of the contract reference and Exhibit # and you the created page to list all repair items/issues specifically.
would you ever write in on Par 7D2 to “see Para 11” and put the repair request in that space?
I had a Lender use part of the sellers contribution to buy down the interest rate for the buyer. I represented the seller. When I called the lender to ask why they did that she said” well that’s just part of the closing cost end of conversation! “Rather rude I did not see anything In that paragraph that talks about buying down the interest-rate. The lender said that’s part of loan fees How should that be handled in the future to make sure the buyer does not use seller contribution to buy down the interest rate could you put that… Read more »
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