Form VRM SC at a glance
What it is: Residential Purchase and Sale Agreement: contract of the Secretary of Veterans Affairs (Seller) and Buyer, as reflected in Section 2.A and 3.A of this Real Estate Purchase Agreement, for the property in Section 1.
Who signs: Sign 13A. SIGNATURE OF PURCHASER with 13B. DATE SIGNED and sign 14A. SIGNATURE OF SPOUSE OR CO-PURCHASER with 14B. DATE SIGNED. This contract of sale is not effective and of no force and effect unless signed on behalf of the Secretary of Veterans Affairs.
A filled-in Form VRM SC example: a cash offer on a VA-owned house
How to fill out Form VRM SC, box by box
1. Property to be purchased
Enter the REO No., then under 1. PROPERTY TO BE PURCHASED enter the Street Address, City, State and Zip.
Section 1 - Purchaser(s) information
Under SECTION 1 - PURCHASER(S) INFORMATION, enter 2A. NAME OF PURCHASER, 2B. ADDRESS OF PURCHASER (Include No., Street or rural route, City or P.O. Box, State and ZIP Code), 2C. HOME PHONE and 2D. BUSINESS PHONE.
3A. Name of purchaser
Enter 3A. NAME OF PURCHASER, 3B. ADDRESS OF PURCHASER (If same as 2B. ADDRESS OF PURCHASER in SECTION 1 write “SAME”), 3C. HOME PHONE and 3D. BUSINESS PHONE.
4. State exact name(s) in which title is to be conveyed
Under 4. STATE EXACT NAME(S) IN WHICH TITLE IS TO BE CONVEYED, enter the exact name(s); for 5. DO YOU PLAN TO OCCUPY THE PROPERTY, mark YES or NO.
7. Cash offer and 8. Term offer
Under 7. CASH OFFER and 8. TERM OFFER, enter A. OFFERED PRICE, then B. SELLER PAID CLOSING COSTS or B. BUYER CLOSING COSTS (paid by seller), C. NET SALES PRICE (Item A - Item B), D. COMMISSION SALES and LISTING, and E. NET TO SELLER (Item C - Item D).
Under 8. TERM OFFER, also enter F. DOWNPAYMENT, G. AMOUNT TO FINANCE, H. INTEREST RATE, I. NO. OF YEARS and J. MONTHLY P & I PAYMENT.
Purchasers agree to close within days after offer is accepted
Enter the number of days within which purchasers agree to close after the offer is accepted.
9. Amount of earnest money deposit
Enter the 9. AMOUNT OF EARNEST MONEY DEPOSIT. The earnest money shall be deposited by purchaser with the escrow agent within two (2) business days after the full execution of this contract of sale. If purchaser fails to make a timely deposit of the earnest money, seller in its sole discretion may elect to terminate this contract of sale, which shall then be of no force and effect. Earnest money is refundable to purchaser only pursuant to paragraphs 6-9 of the “Conditions of Sale” set forth in Section IV.
12. Penalty
The law provides severe penalties which include fine or imprisonment, or both, for the willful submission of any statement or evidence of a material fact, knowing it to be false.
15A. Name and address of real estate firm
Enter 15A. NAME AND ADDRESS OF REAL ESTATE FIRM, 15B. NAME OF PRINCIPAL BROKER, 15C. NAME OF SALES PERSON and 15D. TELEPHONE NUMBER, then 16A. SIGNATURE OF PRINCIPAL BROKER OR AUTHORIZED REPRESENTATIVE with 16B. DATE SIGNED.
Section III - Acceptance by the Department of Veterans Affairs
Section III - Acceptance by the Department of Veterans Affairs has 17A. The Secretary of Veterans Affairs, his successors and assigns, 17B. Date Accepted, BY and TITLE.
1. Closing Date
The closing shall occur on or before the date entered, 20__ or such earlier time as both parties shall agree (“Closing Date”).
If closing does not occur by the Closing Date, Purchaser must submit an extension request prior to the Closing Date, which Seller may accept or reject at its sole discretion; however, if Purchaser fails to submit an extension request prior to the Closing Date or Purchaser refuses or otherwise fails to perform in accordance with this Contract of Sale, Seller may elect to terminate the Contract of Sale and retain all Earnest Money as liquidated damages and upon notice by Seller to Escrow Agent and Purchaser, Escrow Agent will pay such Earnest Money directly to Seller without Purchaser's consent.
If Seller accepts the extension request, Seller shall charge a per diem through and including the new closing date specified in the fully-executed extension.
9. Financing
If this Contract of Sale is contingent on Purchaser obtaining financing to purchase the Property, the type of financing should be one of the following (check one): (i.) Conventional (Insured) (ii.) Conventional (Un-insured) (iii.) FHA (iv.) VA (v.) USDA/Rural Development (vi.) Other (specify).
Purchaser shall obtain an application for a mortgage loan based on financing terms of Loan Amount and term of years with prevailing rates, terms and conditions.
10. Closing costs
Purchaser shall pay all of the closing costs associated with the transaction, including, without limitation, all recording costs, attorney fees, survey, appraisal, application, processing, credit report, documentary, transfer taxes and tax stamps, excise and other fees, all costs related to the financing and escrow fees.
The Seller at its sole discretion may agree to contribute toward closing costs which shall not exceed the amount entered, and will only be paid if costs are properly substantiated costs and pursuant to the agreed amounts.
Add PURCHASER'S INITIALS.
12. Special provisions
Write any Special Provisions on the lines under 12, before 13. Miscellaneous.
14. Purchaser certifications
Under 14. Purchaser Certifications, a. the purchaser offers to purchase the property herein described at the price and terms shown herein, subject to all the applicable conditions of this Contract of Sale shown herein which the purchaser has read and which constitute part of the offer.
Sign under PURCHASER: with the Date.
More rules for Form VRM SC
6. Is the property being purchased directly or indirectly by or for any of the following persons or any of their close relatives?
A. Any person who at any time obtained or assumed the payment of any loan made or held by VA or guaranteed or insured by VA under Chapter 37, Title 38, U.S. Code? YES or NO.
B. Any person who has been employed by the service provider or any other entity under common ownership with the service provider within the last 6 months.
C. Any person who at any time was the owner of the property?
D. Any person who previously purchased a property from VA?
E. An officer, employee, director or shareholder of VRM or its affiliated companies?
F. Any person deriving primary means of financial support from a VRM or affiliate employee or close relative?
G. Any agents, brokers, appraisers, attorneys, trustees, employee of representatives and vendors (including property inspection, property preservation and title companies) of VRM or affiliated companies?
If any answer for Items 6A through 6G is “YES,” give a detailed statement of circumstances on a separate sheet. The term “Close relative” means the spouse, domestic partner, dependent child who lives with such person, parents, children, brother or sister, or any other relative who is a member of the purchaser's household. The purchaser represents and warrants that all of the information in 6A through 6G is true, accurate and complete.
The seller may accept or reject any offer at its sole discretion.
Sources
[1] Form VRM SC (v.07222013), Residential Purchase and Sale Agreement, U.S. Department of Veterans Affairs (the Official source link on this page).