Real Estate Views from St Pete

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Protecting our buyers if the condo doesn't meet financing guidelines

This is a follow-up to my post on blacklisted condos, condos that don't qualify under normal financing guidelines:

Some contract forms provide that when a buyer is approved for his loan, all contingencies are removed; some contract forms don't limit the interest rate that a buyer will pay or limit the type of loan to be pursued.

If we're representing a buyer, we don't want to risk having the buyer lose his deposit because the building he's buying in isn't a building his lender will loan on. Nor do we want him to be obligated to a high interest rate loan because of where he's buying.

Suggest to your manager or your attorney that they draw up an addendum you can add to the sales contract that covers this possibility. Be proactive before you or your buyer are losers. 

5 comments • Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS • February 15 2008 04:46PM

Comments

Sharon, great post.  Yes, the individual contract which a builder or developer may provide requires a lot more scrutiny on ours and the customers behalf.  In appearance they seem more simplistic although some wording is definitely seller biased and rightly so.  You must read, reread and understand any unfamiliar contract.
Posted by Kevin J. May Naples, FL Southwest Florida Real Estate (Prudential Florida Realty) over 4 years ago
Kevin - so right. It may be true that the developer contract is fixed (approved by the state of Florida as is) but that does NOT preclude adding addendums.
Posted by Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS (ALVA International, Inc.) over 4 years ago
Wow, good points, and yes you need to protect these buyers as most probably would have absolutely no clue about these black listed condos. Lance
Posted by Lance Winslow (The Car Wash Guy) over 4 years ago
I have seen this where real estate agents write ans offer with a VA loan on a property that is not VA approved.  An experienced agent would have know to check first.  If they work the area they already know which properties are VA approved.
Posted by Randy L. Prothero - Hawaii REALTOR® (808) 384-5645 (Century 21 Liberty Homes ) over 4 years ago

Lance - I'm afraid many agents also have absolutely no clue.

Randy - good point. An experienced agent would at least know to call a reputable VA lender to ask if the condo was VA approved. 

Posted by Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS (ALVA International, Inc.) over 4 years ago

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