(Short Sales & Multiple Contracts)
Tag: Real Estate Attorney
The normal practice in the real estate community is that Sellers should sign only one contract to sell their home. Any additional contracts are normally treated as “back up contracts.”
In a short sale situation, this practice is not necessarily true. In other words, the Short Sale Seller can sign multiple contracts (even if they do not state that the subsequent contracts are “back up’s.”) The reason for this is that the Short Sale Lender will only accept one of the contracts for an approved short sale.
As long as each of the executed contracts have a short sale contingency (the VAR Form 600 SS, Short Sale Addendum contains an excellent contingency), then the Seller will not be in breach of contract by signing multiple contracts. The Short Sale Lender will only accept one contract and the other contracts will terminate due to the short sale contingency. In other words, the executed contracts not approved by the Short Sale Lender will terminate due to the failure to obtain Short Sale Lender approval.
Remember in “Short Sales” most of what all real estate professionals have learned and experienced in a normal market are “out the window.” Everything is usually different with short sales.
Please call me at 434-951-0858 if you have questions.
William D. Tucker, III, Sr. Partner
Tucker Griffin Barnes P.C.
Where Deep Insight Equals Powerful Advantage!
Charlottesville 434-973-7474 | Lake Monticello 434-589-3636
No comments:
Post a Comment