Do you have to disclose that a Buyer is getting Down Payment assistance? If a Buyer is getting Down Payment Assistance funds – how do you protect that Buyer in a Real Estate Contract – it’s NOT automatic & it’s NOT included in any Financing Contingency! So what do you do? It is not required to disclose that a Buyer is getting a down payment from a program, BUT the Buyer is NOT protected contractually if the Buyer does not receive those funds so that’s where the contract contingency for this issue becomes important!
“This Agreement is contingent upon the Buyer’s approval for the receipt of down payment from _________ program within ______ days from Binding Agreement Date. Should Buyer not be approved for the DPA program within this time frame, Buyer may terminate without penalty if Buyer notifies Seller in writing and provides the DPA denial letter.”
Amee Davis, Davis & Associates, Attorneys at Law, LLC http://www.davislawga.com 770-426-5440