This detailed sample Addendum for Release of Liability on Assumption of FHA, VA or Conventional Loan, Restoration of Seller's Entitlement for VA Guaranteed Loan complies with Texas law. Adapt the language to fit your facts and circumstances. Available in Word and Rich Text formats.
The Houston Texas Addendum for Release of Liability on Assumption of FHA, VA or Conventional Loan, Restoration of Seller's Entitlement for VA Guaranteed Loan is a legal document that is used in real estate transactions in Houston, Texas. This addendum is specifically designed for situations where a buyer is assuming an FHA, VA, or conventional loan, and the seller wants to be released from any future liability associated with the loan. The addendum serves as an additional agreement to the main purchase contract and outlines the terms and conditions under which the assumption of the loan will take place. It protects the seller by ensuring that they are released from any liability once the buyer assumes the loan. Keywords: Houston Texas, Addendum, Release of Liability, Assumption, FHA Loan, VA Loan, Conventional Loan, Restoration, Seller's Entitlement, VA Guaranteed Loan. There may be different versions of this addendum depending on the specific loan type being assumed, such as the FHA Loan Assumption Addendum, VA Loan Assumption Addendum, or Conventional Loan Assumption Addendum. Each addendum will contain language that is specific to the respective loan program. The addendum typically includes the following key elements: 1. Identification of the parties involved: The addendum will clearly state the names of the buyer and seller, as well as their contact information. 2. Loan assumption terms: This section will outline the terms and conditions under which the buyer will assume the loan, including any requirements or restrictions set by the lender. 3. Release of liability: The addendum will specify that the seller is released from any future liability associated with the loan after the assumption is complete. This protects the seller from potential financial and legal obligations related to the loan. 4. Restoration of seller's entitlement for VA guaranteed loan: In the case of a VA loan assumption, the addendum may include language regarding the restoration of the seller's entitlement, which is important for future VA loan eligibility. 5. Indemnification: The addendum may contain indemnification language, stating that the buyer will assume all responsibility for the loan and will hold the seller harmless from any claims or losses related to the loan. 6. Closing and escrow details: The addendum will specify the closing date and any additional escrow or settlement procedures related to the assumption of the loan. It is important for both the buyer and seller to review and understand the terms of the addendum before signing. It is recommended to seek legal advice or consult with a real estate professional to ensure compliance with local laws and regulations. Note: This description provides a general overview of the Houston Texas Addendum for Release of Liability on Assumption of FHA, VA or Conventional Loan, Restoration of Seller's Entitlement for VA Guaranteed Loan. It is always advisable to refer to an actual legal document or consult with a legal professional for precise information and specific variations, as the content and structure of the addendum may vary.
