When navigating the complexities of real estate transactions in Utah, the Seller Financing Addendum plays a pivotal role for both buyers and sellers. This form, designed to be an integral part of the Real Estate Purchase Contract (REPC), outlines the specifics of extending credit from the seller to the buyer. Crucial elements covered include the nature of credit documents—such as whether a Note and Deed of Trust or an All-Inclusive Deed of Trust will be used—and detailed credit terms like the principal amount, interest rate, payment schedule, and due dates. This addendum also mandates the seller to furnish an amortization schedule, interest disclosure, and annual percentage rate upon settlement. Responsibilities for property taxes, homeowners association dues, special assessments, and hazard insurance premiums rest with the buyer, ensuring all financial obligations are clearly delineated. Payment arrangements, late payment penalties, prepayment conditions, and the due-on-sale clause establish a framework for financial interactions between the parties. Moreover, the addendum includes provisions for seller and buyer disclosures, seller approval based on the buyer's financial information and creditworthiness, and the requirement for title insurance. In essence, this form legally binds and benefits both parties by providing a structured, transparent approach to seller-financed real estate transactions in Utah, ensuring compliance with federal and state laws, including the disclosure of tax identification numbers necessary for IRS reporting. Such thorough documentation underscores the importance of clear, concise agreements in facilitating smooth, equitable real estate dealings.
Question | Answer |
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Form Name | Seller Form Utah |
Form Length | 2 pages |
Fillable? | No |
Fillable fields | 0 |
Avg. time to fill out | 30 sec |
Other names | seller disclosure form utah, utah sellers offer form, seller financing form, seller referenced printable |
SELLER FINANCING ADDENDUM
TO
REAL ESTATE PURCHASE CONTRACT
THIS SELLER FINANCING ADDENDUM is made a part of that REAL ESTATE PURCHASE CONTRACT (the "REPC") with
an Offer Reference Date of |
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, between |
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as Buyer, and |
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as Seller, regarding the Property |
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located at |
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. The terms of this ADDENDUM are hereby |
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incorporated as part of the REPC. |
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1. CREDIT DOCUMENTS. Seller's extension of credit to Buyer shall be evidenced by: [ ] Note and Deed of Trust [ ] Note and
2.CREDIT TERMS. The terms of the credit documents referred to in Section 1 above are as follows:
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principal amount of the note (the "Note"); interest at |
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% per annum; payable at approximately $ |
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per |
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. The entire unpaid balance of principal plus accrued interest is due in |
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months from date |
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of the Note. First payment due |
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. Additional principal payments, balloon payments or other terms as follows: |
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The credit documents referenced in Section 1 of this ADDENDUM will contain a
3.TAXES AND ASSESSMENTS. Buyer shall also be responsible for: (a) property taxes; (b) homeowners association dues;
(c) special assessments; and (d) hazard insurance premiums on the Property. These specific obligations will be paid: [ ] directly to Seller/Escrow Agent on a monthly basis [ ] directly to the applicable county treasurer, association, and insurance company as required by those entities.
4. PAYMENT. Buyer's payments under Section 2 above will be made to: [ ] Seller [ ] an Escrow Agent. If an Escrow
Agent,will act as Escrow Agent and will be responsible for disbursing payments on any
underlying mortgage or deed of trust (the Aunderlying mortgage@) and to the Seller. Cost of setting up and maintaining the escrow account shall be paid by: [ ] Buyer [ ] Seller [ ] split evenly between the parties.
5. LATE PAYMENT/PREPAYMENT. Any payment not made within |
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days after it is due is subject to a late charge of $ |
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or |
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% of the installment due, whichever is greater. |
Amounts in default shall bear interest at a rate of |
%per annum. All or part of the principal balance on the Note may be paid prior to maturity without penalty.
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7.BUYER DISCLOSURES. Buyer has provided to Seller, as a required part of this ADDENDUM, the attached Buyer Financial Information Sheet. Buyer may use the Buyer Financial Information Sheet approved by the Real Estate Commission and the Attorney General=s Office, or may provide comparable written information in a different format, together with such
additional information as Seller may reasonably require. Buyer [ ] WILL [ ] WILL NOT provide Seller with copies of IRS returns for the two preceding tax years. Buyer acknowledges that Seller may contact Buyer's current employer for verification of employment as represented by Buyer in the Buyer Financial Information Sheet.
8.SELLER APPROVAL. By the Seller Disclosure Deadline referenced in Section 24(a) of the REPC, Buyer shall provide to Seller, at Buyer's expense, a current credit report on Buyer from a consumer credit reporting agency. Seller may use the credit report and the information referenced in Section 7 of this Addendum ("Buyer Disclosures") to review and evaluate the credit- worthiness of Buyer (“Seller’s Review”).
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8.1Seller Review. If Seller determines, in Seller’s sole discretion, that the results of the Seller’s Review are unacceptable, Seller may either: (a) no later than the Due Diligence Deadline referenced in Section 24(b) of the REPC, cancel the REPC by providing written notice to Buyer, whereupon the Earnest Money Deposit shall be released to Buyer without the requirement of further written authorization from Seller; or (b) no later than the Due Diligence Deadline referenced in Section 24(b), resolve in writing with Buyer any objections Seller has arising from Seller’s Review.
8.2Failure to Cancel or Resolve Objections. If Seller fails to cancel the REPC or resolve in writing any objections Seller has arising from Seller’s Review, as provided in Section 8.1 of this ADDENDUM, Seller shall be deemed to have waived the Seller=s Review.
9.TITLE INSURANCE. Buyer [ ] SHALL [ ] SHALL NOT provide to Seller a lender=s policy of title insurance in the amount of the indebtedness to the Seller, and shall pay for such policy at Settlement.
10.DISCLOSURE OF TAX IDENTIFICATION NUMBERS. By no later than Settlement, Buyer and Seller shall disclose to each other their respective Social Security Numbers or other applicable tax identification numbers so that they may comply with federal laws on reporting mortgage interest in filings with the Internal Revenue Service.
To the extent the terms of this ADDENDUM modify or conflict with any provisions of the REPC, including all prior addenda and counteroffers, these terms shall control. All other terms of the REPC, including all prior addenda and counteroffers, not
modified by this ADDENDUM shall remain the same. [ ] Seller [ ] Buyer shall have until |
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[ ] AM [ ] PM |
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Mountain Time on |
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(Date), to accept the terms of this SELLER FINANCING ADDENDUM in |
accordance with Section 23 of the REPC. Unless so accepted, the offer as set forth in this SELLER FINANCING ADDENDUM shall lapse.
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[ ] Buyer [ ] Seller Signature(Date) (Time)Social Security Number
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[ ] Buyer [ ] Seller Signature |
(Date) (Time) |
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ACCEPTANCE/COUNTEROFFER/REJECTION
CHECK ONE:
[ ]ACCEPTANCE: [ ] Seller [ ] Buyer hereby accepts these terms.
[]COUNTEROFFER: [ ] Seller [ ] Buyer presents as a counteroffer the terms set forth on the attached ADDENDUM NO.
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[]REJECTION: [ ] Seller [ ] Buyer rejects the foregoing SELLER FINANCING ADDENDUM.
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THIS FORM APPROVED BY THE UTAH REAL ESTATE COMMISSION AND THE OFFICE OF THE UTAH ATTORNEY GENERAL,
EFFECTIVE AUGUST 27, 2008. AS OF JANUARY 1, 2009, IT WILL REPLACE AND SUPERSEDE THE PREVIOUSLY APPROVED VERSION OF THIS FORM.
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