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Reminders: Amendatory Clause; RPA Signatures; Seller = LLC; Deceased Seller

Reminders: Amendatory Clause; RPA Signatures; Seller = LLC; Deceased SellerFHA and VA Amendatory Clause. This form is required for all VA and FHA loans. It lets buyers know they are entitled to the appraisal and not bound to buy the property if it does not appraise. This form needs to be signed by all parties and dated prior to the appraisal.

Residential Purchase Contracts – Missing Addenda and Signatures. We beat this drum often – but we need ALL addenda with every contract, including the Buyer’s Inspection Advisory, and the SBSA (both are often missing). Further, we need signatures from all parties, including the listing and selling agents.

Seller is an LLC or Trust. In most cases, contracts must be signed by an individual as a representative for the entity. Most lenders have issues with signatures comprised only of the name of the selling entity. Lenders also need documentation to prove that the signing individual has the authority to sign on behalf of the LLC or trust, e.g. Articles of Incorporation, Trust Cert, etc.

Owner Deceased – If one of the owners of record is deceased, escrow will need an original death certificate in order to prepare an affidavit of death. Escrow needs to be made aware of the decedent ASAP, as it sometimes takes longer than expected to obtain the original death certificate (when the surviving owner does not have a copy, for example).

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