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CHANGES TO FARBAR AS IS RESIDENTIAL CONTRACT FOR SALE AND PURCHASE, PART 5 OF 10

Posted by Sami Thalji | Nov 23, 2021 | 0 Comments

Revisions #2 and 3 to paragraph 8(b):

The second change redefines loan approval. The first component of loan approval is not new. A lender must agree to loan the buyer funds described in the contract. The second component is new and adds that an appraisal (or alternative valuation) satisfactory to the lender is to be received sufficient for the loan to be funded. In other words, a loan approval which is conditioned on an appraisal/ valuation is not loan approval under the revision. Why? Because under the revision, a satisfactory appraisal is part of loan approval, not something to be satisfied later.

The third noteworthy change in this subparagraph relates to a loan approval that requires the buyer to sell a property. As before, the contract establishes that a loan approval which requires the buyer to sell a property is not loan approval. However, a caveat has been added: a loan approval which requires the buyer to sell a property will be considered a loan approval if Rider V entitled Sale of Buyer's Property is attached. The key here is that the buyer who uses Rider V has informed the seller that the offer is contingent on the sale of the buyer's property.

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...

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