In real estate, a short sale occurs when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor (i.e., the seller). Circumstances determine whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing.
This form is a sample of an Addendum to a standard real estate sales contract in order to incorporate the short sales provisions. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
The Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document in real estate transactions involving short sales in the state of Utah. This addendum outlines specific terms and conditions that apply when purchasing a property through a short sale process. One type of Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is the "Standard" version. This is the most common option used in most short sale transactions, providing a comprehensive agreement that covers the essential aspects of the transaction. Another type of Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is the "Customized" version. This version allows for additional terms or modifications to the standard language included in the addendum, catering to unique circumstances or specific requirements set forth by the parties involved. Key terms and provisions that are often included in the Utah Short Sale Addendum include: 1. Short Sale Approval: The addendum specifies that the transaction is contingent upon the seller obtaining approval from their lender(s) for a short sale. 2. Purchase Price: The addendum states the purchase price agreed upon by the buyer and seller, which may be subject to lender approval. 3. Lender Contributions: If the seller's lender(s) agree to contribute towards closing costs or other expenses, this section outlines the terms and limitations of such contributions. 4. Title and Closing: This section establishes the conditions and timeframe in which the property's title must be clear, and how the closing process will be handled. 5. Seller Representations: The seller affirms that they have disclosed all necessary information accurately and that they are authorized to sell the property. 6. Property Condition: The addendum may outline any specific property condition requirements, such as repairs or inspections, which must be completed prior to closing. 7. Contingencies: This section allows for the inclusion of contingencies, such as financing, appraisal, or inspection contingencies, depending on the specific needs of the buyer and seller. 8. Seller Contribution: The addendum may allow for the seller to pay a predetermined amount towards the buyer's closing costs or other fees. 9. Dispute Resolution: This section clarifies the process for resolving disputes between the parties involved, which may include mediation or arbitration, if necessary. It is vital for both buyers and sellers to thoroughly review and understand the Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate, seeking professional advice from a real estate attorney or agent whenever necessary to ensure compliance with state and local laws.
