Any time you have a client that is using VA financing this form should be signed upfront with the normal contract from the seller and buyer....at the time you are making an offer. Not only is it a protection for your buyer, but many lenders will require it to be executed prior to documents being drawn. It saves time in the end to get it signed up front.
I've just closed a couple of VA loans and we had delays because of new addendum.
Here is it:
It is expressly agreed that notwithstanding any other provisions of this contract the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise or be obligated to complete the purchase of the property herein, if the contract purchase or the cost exceeds the reasonable value of the property established by the Veterans administration. THe purchaser shall, however, have the priviledge and option of proceeding iwth the consummation of this contract without regard to the amount of the reasonable value established by the Veterans Administration.
The purchase agreement must unclude, or is amended to include the above statement if the purchase agreement was signed by the Veteran/Applicant prior to his receiving notice of the reasonable value of the subject property.