REO CONTRACT TERMS
The following is a list of offer terms that are acceptable to the banks and here are the items that will smooth and expedite the process for all concerned. Most properties are getting multiple offers and banks will respond to the highest offers that contain these criteria.
All offers are to be written on a standard CAR Residential Purchase Agreement version dated 11/07.
Please include the following items with your offer: Pre Qual Letter, Copy of the Good Faith Deposit Check, FICO Scores and Proof of Funds. The whole package must be submitted at the same time. Do not submit an offer without the other required items. DO NOT send any other disclosures with your initial offer. Do not send in Cooperating Broker Compensation Agreement as this form cannot be signed.
Page 1
1D Escrow 30 days from acceptance
2A Good Faith Deposit 2%
2C Fill in the type of loan, the interest rate, fees/points and length of loan
2I Loan Contingency Removal - 10 Days
2J Appraisal Contingency Removal -10 Days
3A Please check box if the property is going to be non-owner occupied.
Page 2
4A 1 - To be Buyers cost. Do not check 4A 2 - do not attach WPA Addendum
4B 3 - Hazard Report to be paid by Buyer - Check Buyer Box
All other inspections to be paid Buyer - Check Buyer Box
4C 1& 2 - Smoke Detector & Water Heater compliance to be paid by Buyer - Check Buyer Box. Property sold as is so no retrofit will be done by the Seller.
4D 1 - Buyer & Seller escrow fees must read Each to Pay Their Own Escrow. DO NOT WRITE 50/50 Split OR ½ each as this is unacceptable wording.
Escrow Company to be Sellers Choice of Escrow
4D 2 - Seller to pay Title - Title to be Sellers Choice.
4E 1 - To be Sellers cost - Check Seller Box
4E 2 to 5 - Each to be Buyers cost (if applicable) - Check Buyer Boxes. Seller will NOT pay for a home warranty plan.
Page 4
14B - Buyer Inspection Contingency to be removed in 10 Days
14C(4) - Notice to Buyer to Perform “ leave this at 24 hours
Page 5
#16 - Buyer(s) to initial Liquidated Damages.
#17 A&B - Do not have Buyer(s) initial Mediation and Arbitration as Seller will not agree this section.
Don't forget to have Buyers initial the very bottom of Page 5 acknowledging they have read this page of the contract.
All Properties are sold as is - No repairs or credits will be offered by Seller unless specified in the MLS.
There will be $100 a day charge to Buyers for any late closings due to Buyer(s) or Buyer(s) Lender.
Email offer to: TIFFANYLY@MILLIONREALESTATE.COM
or fax offer to: (858) 268-8828 ATTN: Tiffany
Office number for Tiffany is (858)268-8828.
Do not call to check on your offer. Offers do not always get submitted the day you write them. Once offer is submitted it may take days to get a response by the Seller. If your clients offer is verbally accepted, the bank will then send us an addendum or rider that must be signed by your client within 24 hours. We will then send back the entire package to the bank for signatures. Once everything is signed by the Bank they will return it to us fully executed and we will call or email you to let you know and send it to you immediately. It usually takes 2 to 3 days for Escrow to receive the fully executed contract from the bank.
Your clients 10 day contingency period begins from the date the Bank signs the entire agreement.