QUALIFYING THE PURCHASER

It is needless to say, imperative to accept offers only from qualified purchasers. This can be accomplished in a variety of ways. None are full proof.

I have found the most effective means reasonable insuring the qualifications of the purchaser is, by inserting into the contract the following clause, therefore making it part of the contract:

"This contract is expressly conditional upon an "Opinion of the Lender" satisfactory to the seller as to the ability of the purchaser to the qualify for the aforesaid loan/assumption of the existing loan. Said "opinion" is not satisfactory then this contract shall be voidable at the sole option of the seller and if so voided, all the money or things of value hereby receipted for shall be returned to the purchaser. Purchaser represents that they have no history of bad credit, judgments, or bankruptcy, either personal, business or corporate that will affect the ability of the purchaser to obtain/assume this loan."

This clause insures us the ability to take a look at the purchaser per the actual loan application taken by the lender. This minimizes the risk of tying up the property with a non-qualified or minimally qualified purchaser. It also minimizes the possibility of purchaser misrepresentation.

The intent of this clause is to insure full, accurate disclosure by the purchaser to the lender. Should the purchaser not qualify for their loan based on the differences with the actual loan application, it is my position that the purchaser is probably guilty of misrepresentation and therefore subject to the forfeiture of his earnest money deposit, further damages through court action, or both.

<<<< GO BACK

NEXT >>>>