Buyers and Sellers are faced with financing when making a real estate transaction finalized.
Many times the requirements of the lender have nothing to do with the building codes or contract law that governs the purchasing of real estate.
I recently had a sauna that was a large unit permanently wired (hard wired, meaning permanently installed as part of the home with a dedicated electrical circuit) so it would be considered part of the home just like a light, furnace or hot
water heater.
The lender asked that the purchase agreement be changed, using an addendum, to reflect the sauna as a separate purchase like a lawn mower, snow blower or piece of furniture using a bill of sale instead of the purchase agreement.
This request had to do with financing requirements not with legal issues or contract law.
In many cases contracts must be altered to meet financing requirement while still being able to meet the intent of the buyer and sellers wishes.
Real Estate Agents and Brokers do not practice law but using a professional real estate agent to guide you through your real estate transaction can save you the pit falls of negotiating the fine points that make the purchase or sale happen.
It may be difficult to see the validity of the lenders request. The alternatives are to have the buyer find another lender that will not make this request. You can write contracts different, have the buyers work out any items that are not allowed, according to lender rules. Many times these issues can be worked out outside the contract.
The point is...real estate contracts and lending requirements do not always coincide with each other.
Buyers and Sellers should be made aware of these contract versus lending issues before it becomes a disputed buying or selling issue.
Happy Holidays!
For Personal Service, Call: 616-784-2360 Email: GaryWhite@FlexitRealty.com
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