Selling or buying a home that requires a short sale comes with certain terms and conditions. These conditions protect the seller and the buyer from any issues that arise.

Most of the time, the seller and the sellers lender will complete no repairs on the property. The property is being sold As Is.

Below is our standard addendum that we use in all short sale contracts. Most of this addendum relates to buying a short sale. Paragraph number five (5) is what a seller will want to read and understand.

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IT IS hereby agreed and understood by and between the parties hereto that:

1.) Buyer acknowledges that the property and all fixtures are being purchased in "AS IS" condition. The buyer has taken into account and has knowledge of any condition based on his or her personal inspections of this property before making their proposal to purchase offer.

2.) It is expressly agreed and acknowledged by the buyer that express representations, warranties, services or statements contained in this contract of sale when referring to the condition of the property to be conveyed are specifically waived, disclaimed, and rendered null and void.

3.) Certificate of occupancy, termite certifications, and any other certifications required by the lender or township, is the sole responsibility of the buyer. Buyers are responsible for any repairs their lender may require (if there is a lender) to close on this property. Repair limits subject to paragraph four (4).

4.) It is acknowledged by the buyer and seller that the buyer has the right to a home inspection. The home inspection must be completed within 10 working days after attorney review. If the buyer finds the property materially different, or finds severe damage with the property, the buyer has the right to void this contract if the repair amounts exceed $1,500.00. Buyers are responsible for turning on the water and electric for these inspections if needed.

5.) This contract of sale is only valid upon approval of third party lien holder(s) on this property. In most cases this is the seller's lender on the property. At anytime, the seller can choose to cancel this contract if third party approval is not provided and or is not to the satisfaction of the seller. This process could take up to eight (10) weeks or more to complete.

6.) Buyer acknowledges that even if the sellers approve and sign this contract of sale, that the offer is still contingent upon third party(s) approval.

7.) All broker commissions and rates are subject to the same third party approvals.

8.) All other terms and conditions of the original Agreement of Sale shall remain in full force and effect. Where there is a conflict between the original contract of sale and this addendum, this addendum will supersede.

THIS IS A LEGALLY BINDING CONTRACT THAT WILL BECOME FINAL IN THREE BUSINESS DAYS. DURING THIS PERIOD YOU MAY CHOOSE TO CONSULT AN ATTORNEY WHO CAN REVIEW AND CANCEL THIS CONTRACT.