bajones 0 Report post Posted October 3, 2011 I am negotiating my first deal as I type this. The seller has the following question: "If the house will not appraise for the option price when the TB decides to buy, do I owe them the rent credits back?" "What happens if the house will not appraise for the option price?" Good questions, that I am not sure how to answer! Help!! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 3, 2011 The Option to Purchase Agreement contains a financing disclaimer clause, Page 2, Paragraph 12. It states that the availablity of financing is not guaranteed and is the responsibility of the purchaser. So, no, no money need be returned if the t/b is unable to complete the purchase. Share this post Link to post Share on other sites
911loan 0 Report post Posted October 3, 2011 Mike I dont think I have that option agreement? Or I have the old one with the pure option agreement reads" 15. Financing Disclaimer: The parties to this Agreement acknowledge that speculation of availability of financing or assumption of existing loans towards the purchase of the above property is impossible to predict. Therefore, the parties agree that these items shall not be a condition of performance of this Agreement and the parties further agree they have not relied upon any representation or warranties by either party." Can you please send me your updated option agreement? Thanks Thomas911Loan@gmail.com Share this post Link to post Share on other sites
bajones 0 Report post Posted October 3, 2011 Thanks! I thought that was how that read, but was just not sure how to handle it if the appraisal did not work. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 3, 2011 Mike I dont think I have that option agreement? Or I have the old one with the pure option agreement reads" 15. Financing Disclaimer: The parties to this Agreement acknowledge that speculation of availability of financing or assumption of existing loans towards the purchase of the above property is impossible to predict. Therefore, the parties agree that these items shall not be a condition of performance of this Agreement and the parties further agree they have not relied upon any representation or warranties by either party." Can you please send me your updated option agreement? Thanks Thomas911Loan@gmail.comHi, Thomas. I'm sure you have the agreement. It's not the Pure Option Agreement, but the Option To Purchase Agreement. Check again and if it turns out you don't have it, shoot me a PM and I'll get it over to you. Share this post Link to post Share on other sites