Crisis in Real Estate – bring out the Supplemental Agreement!
Today I prepared Supplemental Agreements to go with three separate real estate transactions.
A Supplemental Agreement “supplements and is part of the original Contract of Sale of Real Estate.”
One Buyer had to switch from VA financing to FHA financing because the VA Underwriter required military income documentation that he could not obtain in a timely manner. Rather than risk losing the house, he chose to come up with the 3.5% down required for FHA, and the Sellers graciously agreed to extend the closing date.
Another Buyer who is relocating from out-of-state had a slight schedule change in the sale of his home, so we extending his purchase closing date. It was only a small delay and these Sellers were just as gracious about allowing the minor extension.
And finally, one Buyer’s repairs came in at a much higher amount than agreed upon in the original contract, AND her Lender asked her to pay some medical bills in full that she didn’t expect to pay prior to closing. We wrote a Supplemental stating which repairs were to be made, that she would accept the property in its current condition with the Sellers not responsible for any other repairs, and that a specific dollar amount be paid by the Sellers towards her closing costs.
Whew! Well, you know what they say about the best laid plans! None of the three transactions went as originally agreed upon in the contract. Great communication and the ability to compromise go a long way in real estate transactions and thankfully can be specified in a Supplemental Agreement, rather than starting from scratch.
When a home buyer or home seller wonder whether or not they need a Realtor to guide them through a real estate transaction – I think these few examples show that they do. We are all trying to reach the same finish line and real estate professionals are prepared to react when things don’t turn out as they were planned. We look for solutions fair to all and calmer heads always prevail when a hiccup occurs.
If you are looking for a Realtor to guide you through a real estate transaction, please give me a call! 918-852-5036
Content written and published by Lori Cain.