Addendum For Release of Liability

ADDENDUM FOR RELEASE OF LIABILITY ON ASSUMPTION OF FHA, VA OR CONVENTIONAL LOAN OR RESTORATION OF SELLER’S ENTITLEMENT FOR VA GUARANTEED LOAN

 

ADDENDUM TO EARNEST MONEY CONTRACT BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE PROPERTY AT __________________________________________________(Street Address and City)

(__) A. RELEASE OF SELLER’S LIABILITY ON LOAN TO BE ASSUMED:

         Within ______days from the effective date of this contract Seller and Buyer shall apply for release of Seller’s liability from (a) any conventional lender, (b) VA and any lender whose loan has been guaranteed by VA, or (c) FHA and any lender whose loan has been insured by FHA. Seller and Buyer shall furnish all required information and documents. If any release of liability has not been approved by the Closing Date: (check 1 or 2 below)

(__) 1.             This contract shall terminate and the Earnest Money shall be refunded to Buyer.

(__) 2.             Failure to obtain release approval shall not delay closing and Seller and Buyer shall continue to seek release of Seller’s liability.

(__) B.            RESTORATION OF SELLERS ENTITLEMENT FOR VA LOAN:

Within ____ days from the effective date of this contract Seller and Buyer shall apply for restoration of Seller’s VA entitlement and shall furnish all information and documents required by VA. If restoration has not been approved by the Closing Date: (check 1 or 2 below)

(__) 1.             This contract shall terminate and the Earnest Money shall be refunded to Buyer.

(__)  2.             Failure to obtain restoration approval shall not delay closing and Seller and Buyer shall continue to seek restoration of Seller’s VA entitlement.

NOTICE: VA will not restore Seller’s VA entitlement unless Buyer: (a) is a veteran, (b) has sufficient unused VA entitlement and (c) is otherwise qualified. If Seller desires release of liability from VA and the lender together with restoration of VA entitlement, paragraphs A and B should be used.

Seller shall pay the cost of securing the release and restoration. If Seller’s cost will exceed $____________ , and Buyer declines to pay the excess, Seller may (a) waive release or restoration, (b) pay the excess, or (c) terminate this contract and the Earnest Money shall be refunded to Buyer.

Seller’s deed shall contain any loan assumption clause required by FHA, VA or any lender. The provisions of this addendum are enforceable after closing.

___________________________         ___________________________

Buyer                                                                      Seller

___________________________          ___________________________

Buyer                                                                        Seller

State Specific Real Estate Forms

–For State Specific Real Estate Forms you can download in Word format, go to http://www.uslegalforms.com/realestate/


Inside Addendum For Release of Liability