Real Estate Sales Contract with HUD, Lecture notes of Law

Download Real Estate Sales Contract with HUD and more Lecture notes Law in PDF only on Docsity! ref. Handbook 4000.1 form HUD-9548 (8/2016)Previous editions are obsolete U.S. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner Instructions for Sales Contract Property Disposition Program OMB Approval No. 2502-0306 (exp. 04/30/2020) This Sales Contract, identified as form HUD-9548, must be prepared and transmitted in accordance with the following instructions. The form provides an original for fiscal and legal review, signed copy for the Purchaser, and unsigned information copies for the Purchaser, the selling Broker, and HUD's designated representative.. Remove this Instruction Sheet and type the HUD Case Number in the box in the upper right. Item 1: Type Purchaser(s) name and complete property address. Item 2: Enter name(s) and style in which title will be taken. Item 3: Enter Bid Amount and amount of earnest money Purchaser has deposited. Enter holder of earnest money deposit in accordance with Seller's instructions. Item 4: Enter when appropriate, strictly in compliance with Seller’s offering. If Seller has offered the property with insured financing available, and Purchaser is buying under such means, check the first block and the applicable type of insured financing, and complete the down payment and mortgage information. If the insured mortgage involves a repair escrow (and has been so offered by Seller), also check the appropriate block and insert the amount of the repair escrow. Note: The amounts shown for “cash due at closing” and “balance by mortgage” do not include the FHA Mortgage Insurance Premium, prepaid expenses or closing costs Seller has agreed to fund into the mortgage. Note: If Purchaser is paying cash or applying for conventional or other financing not involving FHA, check appropriate block. Item 5: Enter amount of financing/closing costs Seller is expected to pay. Note: If the amount stated in Item 5 exceeds actual and typical allowable financing and/or closing costs, such excess shall not be paid by Seller and may not be used by Purchaser to reduce amount(s) owing to Seller. Item 6: Enter dollar amount Seller is expected to pay, including any selling bonus if offered by Seller. The commission will be paid by Seller upon completion of closing. Item 7: Enter net amount due Seller (purchase price [Item 3], less Items 5 and 6). Contract will be awarded on the basis of the greatest acceptable net return to Seller. Item 8: Enter appropriate occupancy information. If left blank, Purchaser will be considered as an investor. If purchaser qualifies for discount, enter percent. Discount will be reduced by amounts, if any, on Line Items 5 and 6. (Do not enter discounted price on contract.) Item 9: Enter in accordance with HUD's instructions. Item 10: Enter appropriate back-up offer information. Item 11: Enter if an addendum is to be attached to and made a part of this contract. Note: Addendum not previously approved by Seller may not be made a part of this Contract. Approved addendum must be signed by, and in the same style as, those signing as Purchaser(s). Item 12: Purchaser(s) must initial in appropriate space. Other: a. Failure of the Purchaser to perform in accordance with this contract may cause the Seller to retain all or a portion of the earnest money deposit. Broker must be certain this is fully explained to and understood by the Purchaser(s). b. Enter Selling Broker’s Name and Address Identifier (NAID). If broker has not been issued a SAMS NAID, complete forms SAMS-1111, Payee Name and Address, and SAMS-1111-A, Real Estate Broker Certification, along with required documentation, and attach to this contract. Contact HUD's local designated representative. c. The Broker is required to inform Purchaser of the Conditions of Sale on the reverse of the Sales Contract, and particularly of Purchaser's right and responsibility for satisfying itself as to the full condition of the property prior to submitting an offer to purchase and that Seller will provide no warranty or perform any repairs after acceptance of the Contract. Signatures: Sign Original, leaving carbon inserts intact, making certain that the signature(s) appears on all copies. Transmittal: Forward the Original with Copies 1 and 2 to HUD's designated representative. Copies 3 and 4 are to be retained by Broker and Purchaser as information copies. Upon acceptance, HUD's designated representative will return the signed Copy 1 to Broker for delivery to Purchaser(s). HUD's designated representative will retain Copy 2. Public reporting burden for this collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This information is required to obtain benefits. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information is required in order to administer the Property Disposition Sales Program (24 CFR Part 291). The collection of information is required in order to provide a binding contract between the property purchaser and HUD. A real estate broker or one of its agents completes this form. If this information were not collected, HUD would not be able to administer the Property Disposition Sales Program properly to avoid waste, mismanagement, and abuse. While no assurances of confidentiality are pledged to respondents, HUD generally discloses this data only in response to a Freedom of Information request. Privacy Act Statement: The Department of Housing and Urban Development is authorized to collect this information by the National Housing Act, Section 235(b), P.L. 479, 48 Stat. 12 U.S.C. 1701 et seq. HUD is authorized to collect the Social Security Number (SSN) by Section 165(a) of the Housing and Community Development Act of 1987, P.L. 100-242, and by Section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, P.L. 100-628. The information is being collected to determine the amount of assistance (if any) the applicant is entitled. The information is also used as a tool for managing the program(s) related to this form, and for protecting the Government’s financial interests. The information may be used to conduct computer-matching programs to check for underreported or unreported income. The SSN is used as a unique identifier. The information may be released to appropriate Federal, State, and local agencies, and when relevant, to civil, criminal, or regulatory investigators and/or prosecutors. This information will not be otherwise disclosed or released outside of HUD except as permitted or required by law. It is mandatory that you provide all of the requested information, including all SSN(s), for you and all other household members age six years and older. Failure to provide SSN(s) and required documents will result in a delay or loss of assistance payments. ref. Handbook 4000.1 form HUD-9548 (8/2016)Previous editions are obsolete Broker's Business Name & Address: (for IRS reporting) (include Zip Code) Broker's EIN or SSN: (include hyphens) SAMS NAID: Signature of Broker: Broker's Phone No: X Type or print the name and phone number of sales person: Purchaser(s): (type or print names & sign) Purchaser(s) Address: Purchaser(s) Social Security Number (SSN) or Employer Identification Number (EIN) (include hyphens) Phone No: Date Purchaser(s)Signed Contract: Seller: Secretary of Housing and Urban Development By: (type name & title, & sign) Date Contract Accepted by HUD: X U.S. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner HUD Case No. Certification of Broker: The undersigned certifies that: (1) neither he/she nor anyone authorized to act for him/her has declined to sell the property described herein to or to make it available for inspection or consideration by a prospective purchaser because of his/her race, color, religion, sex, familial status, national origin, or disability; (2) he/she has both provided and explained to the purchaser the notice regarding use of Seller’s closing agent; (3) he/she has explained fully to the purchaser the entire terms of the contract, including Condition B on the reverse hereof; and (4) he/she is in compliance with Seller’s earnest money policy as set forth on HUD forms SAMS-1111, Payee Name and Address, and SAMS-1111-A, Real Estate Broker Certification, which he/she has executed and filed with Seller. This section for HUD use only. Broker notified of: Authorizing Signature & Date: Acceptance Back-Up No. _____________________ Rejection Return Earnest Money Deposit X Sales Contract Property Disposition Program 1. I (We), ___________________________________________________________________________________ (Purchaser(s)) agree to purchase on the terms set forth herein, the following property, as more particularly described in the deed conveying the property to the Secretary of Housing and Urban Development: _______________________________________________________________________________________________________________________ . (street number, street name, unit number, if applicable, city, county, State) 2. The Secretary of Housing and Urban Development (Seller) agrees to sell the property at the price and terms set forth herein, and to prepare a deed containing a covenant which warrants against the acts of the Seller and all claiming by, through or under him. Title will be taken in the following name(s) and style: _________________________________________________________________________________________________________ . 3. The agreed purchase price of the property is ...........................................................................................................> 3. $ ________________________ Purchaser has paid $ _____________________ as earnest money to be applied on the purchase price, and agrees to pay the balance of the purchase price, plus or minus prorations, at the time of closing, in cash to Seller. The earnest money deposit shall be held by ___________________________________________________________ . 4. Purchaser is applying for FHA insured financing [ 203(b), 203(b) repair escrow, 203(k)] with a cash down payment of $ due at closing and the balance secured by a mortgage in the amount of $ for months (does not include FHA Mortgage Insurance Premium, prepaid expenses or closing costs Seller has agreed to fund into mortgage.). Said mortgage involves a repair escrow amounting to $ . Purchaser is paying cash or applying for conventional or other financing not involving FHA. 5. Seller will pay reasonable and customary costs, but not more than actual costs, nor more than paid by a typical Seller in the area, of obtaining financing and/or closing (excluding broker's commission) in an amount not to exceed ........> 5. $ _______________________ 6a. Upon sales closing, Seller agrees to pay to the broker identified below a commission (including selling bonus, if offered by seller) of ......................................................................................................................> 6a. $ _______________________ 6b. If broker identified below is not the broad listing broker, broad listing broker will receive a commission of: ....> 6b. $ _______________________ 7. The net amount due Seller is (Purchase price [Item 3] less Items 5 and 6) ............................................................> 7. $ 8. Purchaser is: owner-occupant (will occupy this property as primary residence) investor nonprofit organization public housing agency other government agency. Discount at closing: % Discount will reduced by amounts, if any, listed on Line Items 5 and 6. 9. Time is of the essence as to closing. The sale shall close not later than ____________ days from Seller’s acceptance of contract. Closing shall be held at the office of Seller’s designated closing agent or _______________________________________________________________________ . 10. If Seller does not accept this offer, Seller may may not hold such offer as a back-up to accepted offer. 11. Lead based paint addendum is is not attached; Other addendum is is not attached hereto and made part of this contract. 12. Should Purchaser refuse or otherwise fail to perform in accordance with this contract, including the time limitation, Seller may, at Seller's sole option, retain all or a portion of the deposit as liquidated damages. The Seller reserves the right to apply the earnest money, or any portion thereof, to any sums which may be owed by the Purchaser to the Seller for rent. Purchaser(s) Initials:_______ Seller's Initials:_______ 13. This contract is subject to the Conditions of Sale on the reverse hereof, which are incorporated herein and made part of this contract. Certification of Purchaser: The undersigned certifies that in affixing his/her/its signature to this contract he/she/it understands: (1) all the contents thereof (including the Conditions of Sale) and is in agreement therewith without protest; (2) he/she/it is responsible for satisfying itself as to the full condition of the property; and (3) that Seller will not perform repairs after acceptance of this contract.