Double closing disclosures?

[Angela Carter]

I am in the process of selling an REO. My attorney says that NO disclosure is needed for the seller because this is not a short sale. It is none of the banks business what I intend to do with the property once it is sold.

However, I DO have to give a disclosure to the end buyer to let them know that this is a double closing. How is that clause written? I want to include this in my P&S agreement, but I don't want the wording to scare off my buyer. They are going to be buying with cash. I have been told by a title company that the disclosure is done through the HUD-1 settlement sheet however, I have also been told by my attorney that I also need to include such in the contract. I don't want to pay the fee in addition to the closing costs to my attorney if i can find a disclosure/clause on my own that fits just fine.

Does anyone know where I might find this clause? :idea:

[Scott Hubbard]

This is the set of disclosures which I use when I have an agreement with end-buyer to purchase. I use this in tandem with a Sales or Assignment Contract when I am flipping a short sale or an REO. This is a simple form which should be used, not only for your protection, but also as a script for you to disclose the facts including the interdependency of the pending transaction and the importance of the buyer performing.

Notes: 1. I also inform the end-buyer that I intend to hold title for a very short time and for that I am discounting the price to reflect the carrying costs I would normally have to incur. 2. I also require the buyer deposit earnest monies equal to six months of carrying costs in case he or she backs out.

This form is not meant to be an agreement, but should instead be used as an adjunct to the Sales Contract. This also can be incorporated into a sales contract, but I prefer to use it as an addendum.

BUYER ACKNOWLEDGMENT, DISCLOSURE AND ADDENDUM TO SALES CONTRACT

I, ____________________ (“Sellerâ€), this _____ day of ____________________, _____, have agreed in writing to sell the property located at ____________________ (“Real Propertyâ€) to ____________________ (“Buyerâ€) and/or its assigns, according to the terms and conditions contained and described in the Sale Agreement (“Agreementâ€) of same date, a copy of which is attached.

Buyer acknowledges, warrants and, represents as follows:

(initial below)

________ 1. OWNERSHIP OF THE PROPERTY: The Seller may or may not be the owner of the Real Property upon the execution of the Agreement, but, in order to effect this sale, ownership will have been recorded prior to the scheduled close of escrow.

________ 2. I ABSOLUTELY AGREE THAT THE BUYER IS ENTITLED TO PROFIT FROM THIS TRANSACTION: I understand Seller may be reselling their rights to the Real Property and may realize a substantial profit in doing so. I agree Buyer is entitled to any profit, in any amount that may ultimately result from the subsequent resale of the Real Property.

________ 4. I AM SATISFIED WITH THE SALES PRICE: I have been given an opportunity to perform my own due diligence with respect to the condition of the property and am also aware the Property is being sold As-Is, Where As. Despite the fact the seller will not warranty the property, I have concluded the price is fair and it is in my best interest to purchase the Property.

________ 5. TIME IS OF THE ESSENCE: I understand that I am required to timely submit all documents, monies, and information necessary to effect this sale including attend the closing.

________ 6. THIS SALE IS ABSOLUTELY FINAL: I understand by signing the Agreement, I have agreed to buy the Real Property and am now legally bound by the terms and conditions described in the Agreement. I further understand that I cannot “change my mind†and try to cancel the contract at some later date. If I fail to perform and cannot effect this transaction, I understand that I will lose my Earnest Money (Deposit).

________ 7. I UNDERSTAND THAT CONTINGENCIES MAY EXIST: I understand the sale may be contingent upon Seller and other third parties performing and effecting the sale. I further understand that if the Seller is unable to secure the sale of this Property, that I am entitled to receive my 100% of my Deposit as presented in the Agreement.

________ 14. LEGAL COUNSEL HAS BEEN ADVISED: I agree and acknowledge Buyer has advised me to seek independent legal counsel to review the Agreement. If I chose not to seek council, it was a decision I made of my own accord.

________ 21. I AM FULLY SATISFIED WITH AGREEMENT: I am fully satisfied with all terms and conditions contained in the Agreement and have been given every opportunity to negotiate the terms that I want.

Dated this _____ day of ___________________, 20____.

Signatures Here:

This form is provided for informational purposes only and as a courtesy to members of this site . Please consult with an attorney prior to using this information.