State Approved Forms Flashcards
The FHA/VA Addendum is used:
A: For Every FHA And/Or VA Transaction
B: For FHA And VA Transactions Only When The Buyer Is Asking The Seller To Pay For Closing Costs
C: For FHA And VA Transactions When It Is Necessary
D: Never
A: For Every FHA And/Or VA Transaction
State Approved Forms
Real Estate Licencess have the Right and
ability to fill in blank forms.
FHA/NA ADDENDUM To Real Estate Purchase Contract
FHA/VA Addendum that must always be used when a buyer is purchasing a home using FHA or VA financing.
Forms must be 100% complete
ALL blanks and checks must be marked or
mark not applicable if not applicable.
Offer Reference Date
Found on page 1 real estate purchase
contract
FHA/VA primarily for owner occupancy.
For single family residence they must live in in it. A duplex or larger, they must live in one of the units.
Buyer has no obligation
to purchase the property or forfeit any earnest money if the appraisal does not come in at least at the purchase price.
safety and soundness
FHA/VA Loans have additional requirements for safety and soundness. Educate your seller about what they are willing and can do.
termite infestation
Seller furnishes a current pest control report and if termites are found, the seller agrees to
eradicate the infestation.
seller contribution
If seller is agreeing to pay for part of buyers closing costs, you are going to put the amount the you want the seller to pay. There is no additional addendum.
Real Estate State Approved Forms available at
www.realestate.utah.gov
under the real estate tab
The website to go to in order to locate the State Approved Forms is which of the following:
A: Www.realestate.utah.gov
B: Www.realtor.org
C: Www.utahrealtors.com
D: Www.slrealtors.com
A: Www.realestate.utah.gov
The Seller Financing Addendum should be used:
A: For Seller Financing Transactions When It Is Warranted
B: For Lease Option Transactions
C: For All Residential Seller Financing Transactions
D: Never
C: For All Residential Seller Financing Transactions
SELLER FINANCING ADDENDUM TO REAL ESTATE PURCHASE CONTRACT
Use for all residential Seller Financing
transactions.
- CREDIT DOCUMENTS
Critical to fill out correctly. You are determining which instruments you will be using. Note and Deed of trust (the property is free and clear, no mortgage); or All-inclusive Deed Of Trust (has a mortgage that will not be paid off from the transaction). And other, lease or lease option or a UREC.
AITD All Inclusive Trust Deed
when there is a current mortgage and it doesn’t pay it off.
AITD
All Inclusive Trust Deed
- CREDIT TERMS
You define the terms of the loan. The seller becomes the lender to the buyer and the parties get to decide with your help how much money they are going to carry back, the interest rate, what monthly payments are going to be and any specific or unique terms to the loan.
- TAXES AND ASSESSMENTS
You want to make sure that the property
taxes stays current.
- PAYMENT
The buyer can pay the seller the monthly payment directly or a third party escrow company. If the third party escrow company is chosen it requires details of who pays what.
- LATE PAYMENT/PREPAYMENT
Common to most promissory notes, there are provisions for late payments and early payoff. This is also where the grace period is documented.
- DUE-ON-SALE.
The bank agrees to give a person a loan on the property they own, if that person decides to sell that property the bank has the right to call that note of due on full at the time of the sale.
- BUYER DISCLOSURES.
The responsibilities the buyer has to disclose
their financial info to the seller.
- SELLER APPROVAL
What the sellers rights are and what it comes
to approving the buyer with their credit.
Paragraph 2
Trust Deed information on underlying mortgage with more detail.
- DISCLOSURE OF TAX IDENTIFICATION NUMBERS
Their requirement of the buyer to disclose.
BUYER FINANCIAL INFORMATION SHEET
In Seller Financing Addendum in Paragraph 7.
Buyer Disclosures it references this sheet. This is only used with in conjunction with the
Seller Financing Addendum.
The Buyer Financial Info Sheet is used in conjunction with:
A: The FHA/VA Addendum
B: The UREC
C: The AITD
D: The Seller Financing Addendum
D: The Seller Financing Addendum
INFORMATION ABOUT BUYER
Information about the buyer for the seller to determine for loan approval. This document
contains much NPI (Non Public Information).
OTHER INCOME:
the buyer states their income situation
ASSETS
buyer lists what assets they own
DEBTS
what does the buyer owe
UREC
UNIFORM REAL ESTATE CONTRACT
(Title is released upon last payoff)
The acronym “UREC” stands for:
A: Uniform Real Estate Contract
B: Universal Real Estate Contract
C: Unilateral Real Estate Contract
D: Utah Real Estate Contract
A State Approved form that can be a valuable tool in a seller financing transaction, IF the agent knows how to utilize it, is the:
A: UREC
B: Blank Addendum
C: Assumption Addendum
D: Survey Addendum
A: UREC
Pros and Cons
It can create some challenges with the title, when you realize with the UREC the title doesn’t change until the contract has been paid in full, which could be years and years. There can be many different things that could effect the contract during all those years
paragraph 8
A mortgage or another obligation the seller has on the property. Disclose fully the
underlying obligations the seller has.
Buyer’s default If the Buyer goes into default, the Seller can remedy using one of the following:
- Written notice of default, the seller can convert as a lease and evict, or
- The seller can sue the buyer, or
- Written notice of default, give 30 days and if they fail, the Seller can convert to and administer as a foreclosure.
Notarized
This document must be notarized, but
typically is not recorded.
A document that needs to be recorded
always has to be notarized, but just because it gets notarized doesn’t mean it gets recorded.
AITD All-Inclusive Trust Deed With Assignment of Rents
- seller has an underlying mortgage on a property and it does not get paid off in
the transaction.
Seller - Beneficiary
Buyer - Trustor
Amount of Trust Deed
Actual trust deed note amount goes here
underlying mortgage(s)
each underlying mortgage is written out in detail
Warranty Deed from the Seller to the Buyer
Buyer gives the Seller the All-Inclusive Trust Deed.
ALL-INCLUSIVE PROMISSORY NOTE SECURED BY ALL-INCLUSIVE TRUST DEED
- Installment Note
- Interest Included
- Must be included with the All-Inclusive Trust Deed
- Always used when creating a secured loan.
Paragraph 2
Trust Deed information on underlying mortgage with more detail.
Makes sure the transaction that is structured
will work economically.
Wrap Around Mortgages
An All-Inclusive Trust Deed is also referred to as a wrap loan or a wrapped loan. You can not wrap a FHA/VA USDA underlying loan.
ASSUMPTION ADDENDUM To Real Estate Purchase Contract
FHA VA and USDA Loans are assumable.
The acronym “AITD” stands for:
A: Appraiser In Training Disclosure
B: All Inclusive Trust Deed
C: All Inclusive Trust Disclosure
D: Assumption Inclusive Trust Disclosure
B: All Inclusive Trust Deed
If the buyer and seller agree to the seller’s financing, and the seller DOES have an underlying mortgage, which instrument would you use to execute this transaction:
A: The REPC, The Seller Financing Addendum, And A Note An Deed Of Trust
B: The REPC, The Seller Financing Addendum, And The All-Inclusive Trust Deed
C: The REPC, The Assumption Addendum, And A Note And Deed Of Trust
D: The REPC, The Assumption Addendum, And The All-Inclusive Note And Deed Of Trust
B: The REPC, The Seller Financing Addendum, And The All-Inclusive Trust Deed
Which document would be used in the event that the Buyer is assuming the Seller’s 3.5% fixed FHA loan?
A: The Assumption Addendum
B: The Blank Addendum
C: The FHA/VA Addendum
D: The AITD
A: The Assumption Addendum
Assumption of Existing Loan
Seller represents that the Existing Loan is assumable. Buyer agrees to make application to the Lender to assume the Existing Loan
Assumption Fees
Buyer agrees to pay any assumption and transfer fees charged by the lender, as well as the interest rate.
Reserve Account
The Buyer agrees to buy it out and Seller is not asking for a refund.
SURVEY ADDENDUM To Real Estate Purchase Contract
The buyer wants the survey that is when you use this form
The Buyer wishes to have a survey done as part of their due diligence. Which addendum should be used?
A: The Blank Addendum
B: The Survey Addendum
C: The UREC
D: The AITD
B: The Survey Addendum
- SURVEY WORK
work to be performed as referred to by the REPC
- SURVEY DEADLINE
Buyers obligation to purchase is conditioned on survey work being completed by a deadline Before filling out this form ensure the Buyer’s surveyor will be able to complete the work
before the deadline.
2.2 Right to Object
if buyer has objections due to the survey,
submit the written objections by the deadline.
2.3 Response by Seller
Make sure that you educate your client about
their response time regarding survey work.
If the buyer and seller agree to seller financing, and the seller DOES NOT have an underlying mortgage, which instrument would you use to execute this transaction:
A: The REPC, The Seller Financing Addendum, And A Note An Deed Of Trust
B: The REPC, The Seller Financing Addendum, And The All-Inclusive Trust Deed And Note
C: The REPC, The Assumption Addendum, And A Note And Deed Of Trust
D: The REPC, The Assumption Addendum, And The All-Inclusive Note And Deed Of Trust
A: The REPC, The Seller Financing Addendum, And A Note An Deed Of Trust
If the Buyer is asking the Seller to pay for some of their lending related closing costs, the proper form to use in this situation is the:
A: Seller Financing Addendum
B: Blank Addendum
C: FHA/VA Addendum
D: Assumption Addendum
C: FHA/VA Addendum
In a Seller Financing transaction, the “Other” line in Section 1 could be used to indicate the use of the:
A: UREC
B: Blank Addendum
C: Assumption Addendum
D: Survey Addendum
A: UREC
When the FHA/VA Addendum is utilized, which of the following is TRUE?
A: The Buyer Does Have To Purchase The Property, Regardless Of Whether Or Not The Appraised Value Is At Least Equal To The Purchase
B: The Buyer Does Not Have To Purchase The Property Whether Or Not The Appraised Value Is At Least Equal To The Purchase
C: The Buyer And Seller Must Renegotiate The Purchase Price To At Least Be Equal To The Appraised Value
D: None Of The Above
B: The Buyer Does Not Have To Purchase The Property Whether Or Not The Appraised Value Is At Least Equal To The Purchase
When the Buyer is taking over the Seller’s underlying mortgage obligation, which of the following addenda would the agent use to facilitate this?
A: UREC
B: Blank Addendum
C: Assumption Addendum
D: Survey Addendum
C: Assumption Addendum
When there are no supplementary clauses or addendums exists to modify the terms of the Real Estate Purchase Contract, which of the following addenda would the agent use?
A: UREC
B: Blank Addendum
C: Assumption Addendum
D: Survey Addendum
B: Blank Addendum
The Buyer Financial Information Sheet is used in conjunction with the:
A: Seller Financing Addendum
B: Blank Addendum
C: Assumption Addendum
D: Survey Addendum
A: Seller Financing Addendum
The Seller Financing Addendum clearly states that the Seller has until what date to conduct a Seller’s Review of the Buyer’s Credit and Buyer Disclosures?
A: The Seller Disclosure Deadline
B: The Due Diligence Deadline
C: The Financing And Appraisal Deadline
D: The Settlement Deadline
B: The Due Diligence Deadline
The Seller Financing Addendum spells out:
A: How Late Payments Are To Be Handled
B: The Terms Of The New Loan
C: The Due-On-Sale Clause
D: All Of The Above
D: All Of The Above
When using the Survey Addendum, if the Buyer objects to any of the findings of the survey reports, the Buyer and Seller have how many days to resolve the Buyer’s objections?
A: 3 Days
B: 5 Days
C: 7 Days
D: 10 Days
C: 7 Days
