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We offered on a REO a few weeks ago. The bank counterred and sent us some (unsigned by them) addendums. We signed the addendums and sent them back. Now it's been a week, and they still haven't signed and returned the documents to us.
My question: Our 10 day inspection period doesn't start until THEY have signed the documents and returned them to us, right? The contract doesn't begin until it is signed by both parties?
All of this waiting makes me nervous, like there is some clock ticking that I haven't been told about, and suddenly I'll be told that the inspection period is over before I knew it had begun. I also can't begin to understand why they didn't sign the addendums THEY WROTE in the first place.
Do you have your own agent? Your agent should help you review the addendum to understand when inspection period starts. It is normally defined in the addendum. Most indicate it starts when the addendum is fully executed - when the bank signs off. Some lender's addendums, like Fannie Mae, will say it starts upon verbal acceptance and will state the date of that acceptance. If it's still not clear, your agent should discuss this with the listing agent for clarification.
We had a contract on a REO and they didn't sign and send the papers back until halfway through our 10 day inspection period. Very frustrating. They considered the contract valid once we verbally agreed (Acknowledgement Date). Of course we didn't want to spend $400 on an inspection without having an actual signed contract either. Be very careful, you don't want your inspection period to expire. Being a REO there's a good chance there are a lot of things that need fixing, that you can't see during the showing. We did end up having our inspection on the last day of the inspection period and after viewing the inspection report terminated the contract. Good luck.
Last edited by ilikepizza; 06-23-2010 at 06:38 AM..
You need to reread your addendum. Like rjrcm said some say that the clock starts ticking when you have verbal confirmation.
Some banks take 2-3 weeks to get those signatures back to you. It is very possible that you wouldn't get signatures back until after your inspection period ends. If you don't understand the addendum you signed, consult an attorney.
Some also have two dates. They'll have one date that is the "acceptance date" and one date that is the "acknowledgement date". Then they specify what time frames are started on which dates. I've also seen some that, rather than saying "10 days", just say inspection period to be through June 25th, 2010, or whatever, in which case, it doesn't matter when it finishes getting signed.
Also be sure that you actually have 10 days. Many only allow 7 days. It's critical that you carefully review your addendum. Many items in the addendum override your original contract. As mentioned, if uncertain, consult with an attorney.
All right, I spent the evening last night reviewing (and reviewing again) the 47 page addendum. I do have 10 days for inspection after the execution date, and from what I understand in the reading the "execution" is the date that it is signed by BOTH parties. (Which hasn't happened yet, and no one can tell me why. They WROTE the darn thing, why are they taking weeks to SIGN it?!)
For a form that is supposed to clarify things, it sure makes everything more confusing. I swear it seemed like they were contradicting themselves on every other page.
And can I just say that I love that how in order to buy a house, we are forced to sign things that sign away our rights? How on earth can this be legal?! It's like going to the doctor's office and being forced to sign papers saying you won't sue them no matter what they do wrong, or they won't see you. So your options are: Sign away all of your rights, or don't see a doctor. Sign away all of your rights, or don't buy a house. Ridiculous. Why do they even HAVE rights if everywhere you turn you are forced to sign them away? (9 month pregnant lady rant, over.)
As you said, it's your choice to sign away rights or not. The consequences however of not signing may not be acceptable (not getting the house). Perfectly legal.
Hopefully the bank is not delaying their signing so they have time to consider other offers. Even though you got a verbal acceptance, they reserve the right to back out and take another offer. Happened to one of clients. Got verbal acceptance, sent back the addendum only to be told they took another offer.
All right, I spent the evening last night reviewing (and reviewing again) the 47 page addendum. I do have 10 days for inspection after the execution date, and from what I understand in the reading the "execution" is the date that it is signed by BOTH parties. (Which hasn't happened yet, and no one can tell me why. They WROTE the darn thing, why are they taking weeks to SIGN it?!)
For a form that is supposed to clarify things, it sure makes everything more confusing. I swear it seemed like they were contradicting themselves on every other page.
And can I just say that I love that how in order to buy a house, we are forced to sign things that sign away our rights? How on earth can this be legal?! It's like going to the doctor's office and being forced to sign papers saying you won't sue them no matter what they do wrong, or they won't see you. So your options are: Sign away all of your rights, or don't see a doctor. Sign away all of your rights, or don't buy a house. Ridiculous. Why do they even HAVE rights if everywhere you turn you are forced to sign them away? (9 month pregnant lady rant, over.)
First, You don't have to sign the addendum, which means not buying the house. They can dictate the terms of the sale of their property as long as they don't break laws.
Second, it is the price to pay for getting good deal. If lenders were going to do the reasonable seller thing, then why would they discount their properties so heavily? It's kind of a no pain, no gain thing. If you want the good deal...the price is signing your rights away.
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