Paragraph 12.A(1)(b) meaning ?

Question

When need to fill it in? Why don’t choose ask for reduction of sale price at paragraph 1

Veronica Mullenix · Accepted Answer

This section has a blank for filling in an amount seller will contribute toward buyer\'s closing costs. Following the blank is a prioritized list of how the funds will be applied. This is an optional blank, it is used when needed. The lender should always be consulted about how much the seller can pay because the lender usually limits the seller\'s contribution on high ratio L.T.V. loans. Another consideration is, it may be cautioned that at the early stage of negotiation, at the time of initial offer, it may be unwise for a seller to commit to pay much if anything toward buyer\'s closing costs until after inspections are completed. Often this paragraph is used during the negotiations that follow an inspection. This paragraph is sometimes used as a means of compensating a buyer for unexpected inspection findings. Whenever this paragraph is being considered by the parties the lender should be consulted to ensure the amount the parties are agreeing to will meet with the underwriter\'s approval for the financing. Hope this helps you.

Linh Bui

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