What must a Buyer do to terminate a contract WITHOUT penalty (i.e. not lose their Earnest money or not be sued for default) if the appraisal comes in low and they are getting a Conventional Loan and they are binding under a Georgia Association of Realtors (GAR) contract with a Conventional Loan Contingency Exhibit? Watch the video to find out! This information varies if 1) Buyer is getting an FHA or VA Insured Loan and 2) Buyer is binding under a different contract form.
If the Buyer is getting a Conventional Loan and the appraisal comes is low, what must the Buyers do to protect themselves based on this contingency? Well, it DEPENDS on what contract under which the parties are binding! There are very different obligations of the Buyer from the Georgia Association of Realtors (GAR) contract vs. the RE Forms contract with respect to the Appraisal Contingency! Watch the video to find out what to do to make sure the Buyer doesn’t terminate by default!
Next Week is Part 2 – what those specific time frames are!
When you send a referral and get paid a referral fee, are you.breaking license law? Watch the video to find out what you need to do to make sure that you are not in violation of license law!
If a Buyer has gone under contract to buy a house contingent upon receiving financing and they get denied for their loan, they must do the following: (1) terminate within the negotiated time frame, and (2) provide a “Loan Denial Letter” from their lender. However, there are very specific parameters as to what the Loan Denial Letter must reflect in order for the Buyer to actually terminate on this contingency and not default on the contract… and lose their Earnest Money or potentially be sued by the Seller for the default. These specifics are outlined very clearly in the Georgia Association of Realtors (GAR) Financing Contingency Exhibits as well as in the RE Forms Standard Terms. Watch the video for examples of Loan Denial Letters that do not meet the Buyer’s Financing Contingency.
Happy Independence Day from ALL of us at Maximum One to you! Check the Training Calendar for CE classes this week! www.eAGENTweb.com click “Calendar.” Regular newsletter to resume next weekend!