2011 Forms Changes
Short Sale Exhibit & Notice to Terminate

Short Sale Contingency Exhibit (F94)

The short sale contingency has been modified with the following:

a.    Bold Faced language saying "If the mortgage lenders and, if applicable, other lien holders, agree to take a reduced payoff, it shall be the sole responsibility of the seller to verify that they are also releasing seller from further liability."

This clause is important as it will protect real estate professionals from any claim that they may have been responsible for obtaining any sort of release of responsibility for the seller from the seller's lender.   

b.    Requires the consent of all lien holders to the short sale.

c.    Language was added to the exhibit to require compliance with the HAFA program.

The HAFA program mandates that a buyer of a short sale property must not resell the property within 90 days of the closing of the purchase. The buyer must also certify that they are purchasing the home as an "arms length" transaction.

Unilateral Notice to Terminate; Agreement to Disburse Earnest Money (F83)

The Unilateral Notice to Terminate; Agreement to Disburse Earnest Money allows for the following:

a.    Replaced the Notice to Terminate; Termination and Release Agreement.

b.    Allows either Buyer or Seller to terminate the purchase and sale agreement for various reasons such as Buyer's right to terminate during a due diligence period or for either party's right to terminate based on a failure of a contingency to which the contract was subject.

c.    Allows for either party to terminate the agreement based on the default of the other party.