Realtor® Legal Tip – The NEW REPC – Does your buyer have to sell her home before she can purchase the new home?
September 19, 2017
Author: Curtis Bullock
In the new REPC, section 2.2 requires that the buyer make an important disclosure to the seller about whether she must first sell her existing home in order to either pay cash or get a loan to purchase the new home.
The idea here is that the buyer should make this important disclosure to the seller so the seller has all the information necessary to make a good decision.
It is CRITICAL that if the box in section 2.2 is checked in the affirmative, that the Subject to Sale of Buyer’s Property Addendum (or something similar) is part of the offer.
Buyer’s and Seller’s agents have a duty to ensure that this standard addendum (or something similar) is attached to the contract. The UAR Subject to Sale of Buyer’s Property Addendum includes the necessary language to handle this type of complex transaction. Not having this addendum or at least an addendum that includes similar language could create some problems.
*Note – the Subject to Sale of Buyer’s Property Addendum is being reviewed by the forms committee and may be slightly revised in the coming weeks. In the meantime, be sure to read over the form carefully and use it when necessary.
If you have questions, be sure to contact the UAR legal hotline at (801)676-5222 on M, W or F.