New Britain, CT · Member since 2019 · 33 posts · 3 votes
I’m not clear on what this means on a “Contract to purchase real estate “ can someone explain this to me .
“Buyer obtaining real estate mortgage for no less than ______ payable over ______ years with interest not to exceed _____% at customary terms with a firm commitment thereto within _____days hereof “
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
7y
@Joseph Ayala It sounds like a financing contingency, which is a standard part of an offer or P&S.
It will say something like this; "This offer is contingent on the buyer obtaining a mortgage at prevailing terms and conditions. In the event that the buyer is unable to obtain financing, all deposits shall be returned to the buyer forthwith". Except in your case, it sounds like the contract specifies the precise terms of the mortgage.
The second part details the extent of your mortgage contingency. Ours say something like: "Buyer must obtain a commitment from a lender by [date], or the buyer will be entitled to a refund of their deposits. For this provision to take effect, the buyer must submit an application to a lender by [date].
That's loosely the language we use, but it's pretty close. I'm not licensed in CT, so it's possible that there's some weird twist there that I'm not aware of.
Rental Property Investor · Dallas, TX · Member since 2018 · 30 posts · 32 votes
7y
Sounds like a financing agreement. $x over y years at z% interestwith an option period of n days.interest What part are you having trouble understanding?
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
7y
@Joseph Ayala It sounds like a financing contingency, which is a standard part of an offer or P&S.
It will say something like this; "This offer is contingent on the buyer obtaining a mortgage at prevailing terms and conditions. In the event that the buyer is unable to obtain financing, all deposits shall be returned to the buyer forthwith". Except in your case, it sounds like the contract specifies the precise terms of the mortgage.
The second part details the extent of your mortgage contingency. Ours say something like: "Buyer must obtain a commitment from a lender by [date], or the buyer will be entitled to a refund of their deposits. For this provision to take effect, the buyer must submit an application to a lender by [date].
That's loosely the language we use, but it's pretty close. I'm not licensed in CT, so it's possible that there's some weird twist there that I'm not aware of.
I’m not clear on what this means on a “Contract to purchase real estate “ can someone explain this to me .
“Buyer obtaining real estate mortgage for no less than ______ payable over ______ years with interest not to exceed _____% at customary terms with a firm commitment thereto within _____days hereof “
This is a breakdown of the general financing terms.
For no less than _____ amount. - This is the mortgage amount.
payable over ______ years with interest not to exceed __________ - This is the term length & interest rate of the mortgage.
Last line is the amount of time buyer has to get lender to commit to all of the above.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
7y
@Joseph Ayala This is just a standard part of the "mortgage contingency" clause in the Connecticut GHAR purchase and sale contract. It is just outlining for the seller what the terms of your financing are.