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Clean Purchase Contracts; No Reports/Inspections; All Addenda

Clean Purchase Contracts; No Reports/Inspections; All AddendaWe received a purchase contract last week, and immediately emailed our confirmation of terms request to the Realtor and then ordered our rush appraisal, as per usual.

Four days later, we received the appraisal at the contract price of $830,000. Yaaaayyy, right? Wrong. The Realtor forgot to send us the addendum indicating the price was actually $900,000…

Realtor Reminder #1: Please be sure to send the entire Residential Purchase Agreement (RPA) with ALL of the addenda to your lender. Make sure your email attachments include every page of the RPA. We live and die by the terms on purchase contracts, and have to share them with appraisers too. We need every page, every time.

Realtor Reminder #2: For “As Is” transactions, please make sure the RPA references no inspections or reports, or underwriters will request them – always. If the inspections or reports reference any work to be done, it will most likely have to be done prior to close of escrow. Our Contracts Desk reviews contracts for all such references, fortunately, but our 15 day closes can be delayed when we have to wait for clean contracts.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167