Preparing an offer for a Bank-Owned Property

 

Selling a bank-owned property has additional requirements and limitations from traditional sales.  This property is being sold AS-IS with No Disclosures and No Repairs.  All offers will be presented to the seller.  The seller requests serious offers from serious buyers.  The Seller believes that this property is listed at a fair market value considering condition and available comparables.

The Seller has made no professional inspections of the property’s condition.  The Buyer is responsible for any and all inspections.  The seller encourages Buyers to perform inspections prior to submitting offers.  Please consult with listing agent prior to making any inspections.  This document should serve as a guide in preparing your offer but is not a legal document nor does it purport to provide legal advice.  Please consult a real estate law professional with any questions. 

 

(  ) Seller requires a signed GAR Contract

-Delete and initial paragraph 8 referring to Seller Disclosure.

- Indicate on GAR that EM will be paid to CRYE-LEIKE w/in 24 hours of binding agreement by making appropriate changes to existing contract or by adding special stipulation indicating same.  Seller will request that Buyer strike and initial “HAS PAID” in paragraph 3 referring to earnest money and replace with “WILL PAY” Crye-Leike “WITHIN 24 HOURS OF BINDING AGREEMENT” or make some such similar and suitable change indicating that earnest money has not yet been received and will be held by listing broker and will be delivered within 24 hours of binding agreement.  Please consult your firm’s broker or attorney as to how to best indicate this agreement.  All changes to the GAR must be initialed by the buyer.

 

(  ) Earnest Money is to be held by the listing broker, Crye-Leike, Realtors  unless otherwise noted.

 

(  ) A copy of Earnest Money Check ($1000.00 Minimum) payable to Crye-Leike must be included with the offer.  Earnest money should be commensurate with the value of the property.  All earnest money must be delivered to Crye-Leike office at 3170 Peachtree Industrial Blvd, Ste 125, Duluth GA 30097 within 24 hours of acceptance date. 

 

(  )  Cash Deals require “Proof of Funds” letter from Buyer’s financial institution and closing within 2 weeks of contract acceptance and 10% earnest money in certified funds payable to seller’s closing attorney and to be credited to buyer at closing.

 

(  ) The Seller will consider either All CASH or Conventional Financing Only.   The Seller may not consider offers contingent on 100% financing due to the condition of many foreclosure properties.

 

(  ) Lender Financing requires Credit Pre-approval letter from a DIRECT ENDORSEMENT Lender which must be submitted along with any offer.

 

(  ) Seller may require pre-approval with seller-selected lender.  Buyer may, of course, choose their own actual lender.

 

(  ) Closing attorney is Seller’s Choice and should be indicated as such in paragraph 7 of the GAR

 

(  ) Buyer Inspection Period is seven (5) to ten (10) days (calendar (not business) days.) from Binding Agreement date depending on the seller's policy. 

 

(  ) Closing must take place on or before negotiated date and within 30 days of contract date.  Seller addendum will include language regarding applicable per diem fees which are calculated starting the day after the original contract close of escrow date and are counted in calendar (not business) days.

 

(  ) The closing will take place at seller’s attorney’s offices where a complete closing package must be delivered by the lender within at least 48 hours prior to any scheduled closing.  (Any delays beyond the contracted COE date and that are not the fault of the seller will incur per-diem charges.)

 

(  ) Please note that commission rates are set by the bank and are not negotiable. If you feel that the commission is too low it may be possible for you to seek the difference from your client depending on your brokerage agreement.  Commission is paid on the net sales price minus any seller concessions.  Commission may not be payable to an agent acting as principal depending on the bank.  

 

(  ) A Seller “AS-IS Addendum” or “Counterproposal” will be provided by seller’s agent after agreement of terms and must be returned initialed and signed by the buyer prior to receiving any seller signatures. 

 

(  ) Some corporate seller’s may have additional requirements which will generally be indicated on the MLS.  Contact the seller’s Agent – Edwin Ashurst at 770-309-0275 with questions.