North Carolina Subject to addendums

7 Replies

The new NC offer to purchase and contract agreement has an option in the "Purchas Price" for taking over a property subject to the existing loan. It also makes mention of a "Subject To addendum". Does anyone have a copy of this addendum?

Kris, the "subject to" part of the new offer to purchase and contract agreement hasn't materially changed from the past versions of the form.

Be really careful if you use the LOAN ASSUMPTION ADDENDUM form. This is an assumption form and you are not assuming the loan, you are taking the loan subect to the exiting loan. If you use this form, you should strike the sentences at the top of page two: "Seller

@ Shanequa and Chris:
That's exactly what I was looking for! Thanks!

Chris do you have personal experience with Sub-2's? In response to Rob's post, how important would you say it is to even have such an addendum? My first impulse is to follow your recommendations in modifying the addendum and go from there, rather than paying an attorney to do the same. As Rob mentioned (jokingly albeit), if my seller is that motivated to agree to a sub 2 deal, then should I really be concerned with having an attorney drafted addendum?

I am not a S-2 investor. The handful of times I've had opportunities, the deals were mediocre at best. Rob wasn't joking... the bottom line is that a contract is a contract. You don't need a Form 2-T for a real estate deal to be 'legal'. Now, do I use standard forms? Yes, because everyone knows what they are. And by everyone, I mean lawyers and judges... because with wholesaling S-2 contracts, it is going to be all about your buyer's performance. As wholesaler, you broker the deal and you don't want it to come back and haunt you.

Just discovered this link to a PDF that contains what I was truly looking for. It might help out another overly cautious investor out there haha.

http://www.loveamericanhomes.com/appendixbasic_files/10_Subject_To_Financing_Addendum.pdf