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Old 03-30-2010, 03:41 PM
 
14 posts, read 66,845 times
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I put an offer in on a short sale home 01-31-10. Offer accepted by sellers 02-01-10. Bank countered 02-23-10 which I accepted. The original contract closing date on the contract was/is 03-31-10. The bank acceptance is valid through 04-23-10. I need an extension for FHA to close 04-16-10, which the sellers do not want to grant, as they have an offer behind mine. Today my realtor realized that the "short sale addendum" was never provided to me from the listing agent. When she obtained it, the sellers name and signatures were on it, and it was dated 10-16-09 (possibly a previous offer). Anyways, the buyer portion and time period portions are left blank. My realtor filled in my information, and we checked the box indicating the closing date commences upon approval from the lender. My question(s) is this- who's error is it that I did not receive this form? The listing agent says she gave it to my agent. Is it valid now that it is complete, since the date is prior to my offer? Does this addendum trump the contract closing date? Please advise!!!
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Old 03-30-2010, 04:30 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,883,460 times
Reputation: 2193
Quote:
Originally Posted by anneelizabeth View Post
...Today my realtor realized that the "short sale addendum" was never provided to me from the listing agent. When she obtained it, the sellers name and signatures were on it, and it was dated 10-16-09 (possibly a previous offer). Anyways, the buyer portion and time period portions are left blank. My realtor filled in my information, and we checked the box indicating the closing date commences upon approval from the lender. ...
1st, the addendum is not valid since it was dated previous to your contract date. 2nd, altering a contract without review and initial by the other party is illegal and invalidates the contract. And it appears you already know the sellers would not agree to your changes.
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Old 03-30-2010, 04:44 PM
 
14 posts, read 66,845 times
Reputation: 11
Should I have received this paper in the first place? I dated the paper with today's date, as that is the date I received it- how is that fraud? Any suggestions on what to do next? It is my understanding that this form trumps the contract closing date, because it states the contract "commences from the date the seller delivers written notice to buyer that the contract has been approved by the lender".
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Old 03-30-2010, 04:54 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,883,460 times
Reputation: 2193
Your agent should have submitted this addendum with your original offer. It is not the seller's responsibility to provide it. It would trump the contract closing date if it was properly executed, which does not appear to be the case.

My concern is that the seller's signature is dated prior to both parties acceptance of the main contract. This suggests that they may not agree to the terms you subsequently wrote in that contradict the contract they signed. They should only sign after you fill in the addendum to signify their agreement. Both parties must review and sign off on any proposed contract changes.

If you think the sellers will agree to what you did, then send the addendum back to them to re-sign and date. That would make it official.
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Old 03-30-2010, 05:14 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,883,460 times
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To answer your question of fraud. Here is a possible scenario:

1. Listing agent sends you a seller signed addendum
2. You alter the addendum by checking the box indicating closing date change, you do not send back to listing agent for seller approval of your change
3. Addendum submitted to closing office with your intent to change the closing date
4. Seller's question change and submit original addendum with signature and unchecked box as proof they did not agree

You may want to consult with an attorney regarding contract law.
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Old 03-30-2010, 06:36 PM
 
Location: Salem, OR
13,984 posts, read 32,765,487 times
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First of all buyers agents write up the contracts, generally speaking, so if you are looking for fault on the failure to have a short sale addendum attached to your original offer then I would talk to your agent. Out here, that is 100% the buyer's agent responsibility to attach that in the original offer.

Second, you can't just fill in a contract and call it executed. The sellers would have to initial the changes that you made to the addendum in order for it to be executed.

Third, this addendum only trumps the contract closing date if it is properly executed, which this does not sound like it is.

Totally with rjrcm on this one.
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Old 03-30-2010, 06:52 PM
 
14 posts, read 66,845 times
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Both my agent and the listing agent are with the same real estate agency. Isn't there some sort of recourse for me if either one made a human error with this that costs me the deal? Some sort of acts of omission something or other? Some kind of bond or something?
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Old 03-30-2010, 08:04 PM
 
Location: Salem, OR
13,984 posts, read 32,765,487 times
Reputation: 12696
Your choices are
1) call your buyer agent's principal broker and talk with them about what happened and see if they can step into the transaction.
2) call a real estate attorney for an informed opinion about your contract.
3) continue to have your agent attempt to negotiate for the extension
4) let the house go to the next buyer.

Whether or not you have any recourse depends on what your contract says.
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Old 03-30-2010, 08:10 PM
 
14 posts, read 66,845 times
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Thanks- much appreciated to both of you!
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Old 03-31-2010, 07:54 AM
 
152 posts, read 423,368 times
Reputation: 79
Quote:
Originally Posted by rjrcm View Post
Your agent should have submitted this addendum with your original offer. It is not the seller's responsibility to provide it. It would trump the contract closing date if it was properly executed, which does not appear to be the case.

My concern is that the seller's signature is dated prior to both parties acceptance of the main contract. This suggests that they may not agree to the terms you subsequently wrote in that contradict the contract they signed. They should only sign after you fill in the addendum to signify their agreement. Both parties must review and sign off on any proposed contract changes.

If you think the sellers will agree to what you did, then send the addendum back to them to re-sign and date. That would make it official.
This fact is interesting - we submitted an offer on a short sale property without any addendum and when it was ultimately accepted by the sellers, they included the addendum back to us. We had no idea it should have been included as part of our original offer, the listing agent said it was needed. Once we read it we saw that it primarily protected us, not the sellers. Interesting!
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