How to Prepare a Short Sale Purchase Agreement
A short sale refers to the sale of a real estate property when a homeowner is forced to sell the house after he or she has failed to make mortgage payments. The lien holder, usually a bank, then agrees to accept an amount which is lower than what was owed on the debt. Whether the borrower is released from his or her obligation will depend on the agreement between the two parties. Short sale is a tool which is usually used in order to avoid foreclosure but will result in a negative credit history against the borrower. Although the agreement can be drafted by any party, it is usually the work of an attorney who prepares the contract in order to protect the borrower’s interests.
Instructions
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1
There will be various sections of the document where an attorney will begin by giving the contract a heading which could be “Sale and Purchase Agreement”. The contract must include the names of the both parties and must differentiate between a buyer and seller. It must clearly state the buyer and seller have agreed for a short sale for the product(s) mentioned herein.
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2
Now specify the product(s) in section 1 of the document. You will be describing the product, which in this case will be the home or the real estate property. Mention the purchase date, when the seller will be vacating the premises, items which are included and excluded from the sale. If there is just one product for sale, then make sure that you refer to it in the whole document. However, if there are multiple products then create a main index and list those.
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3
In section two of the document, you will quote the price and payment methods. Give an appropriate heading and enlist a cumulative price, along with the modes of payment such as installments, monthly payments etc. Prepare a final section, depending on your own preference which may include warranty claims, housekeeping provisions, inspection procedures and any other obligations.
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4
Leave the final page for approval or create a signature section. Here an individual may sign on behalf of the company. If this is the case, then the authorized person must also write his or her designation.
