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Short Sale Agreement
"I need a Short Sale Agreement for a residential property in Dublin, where Bank of Ireland has agreed to accept €280,000 against an outstanding mortgage of €350,000, with completion planned for March 2025; please include specific clauses about debt forgiveness and future claims waiver."
1. Parties: Identifies all parties to the agreement: seller, buyer, and the lending institution
2. Background: Outlines the current property ownership, existing mortgage, reason for short sale, and lender's agreement to accept less than full mortgage payoff
3. Definitions: Defines key terms used throughout the agreement
4. Property Details: Detailed description of the property being sold, including legal description and registration details
5. Purchase Price and Payment Terms: Specifies the agreed purchase price, payment method, and timing of payments
6. Lender's Consent: Details of the lender's agreement to the short sale and terms of mortgage satisfaction
7. Conditions Precedent: Conditions that must be met before the agreement becomes effective
8. Completion: Process and requirements for completing the sale
9. Seller's Representations and Warranties: Seller's declarations regarding property condition, title, and other material facts
10. Buyer's Representations and Warranties: Buyer's declarations regarding financial capacity and understanding of short sale terms
11. Release and Discharge: Terms of release from remaining mortgage obligations
12. Governing Law and Jurisdiction: Confirms Irish law governs the agreement and jurisdiction for disputes
1. Broker Involvement: Required when real estate brokers are involved in the transaction, detailing their roles and commissions
2. Debt Forgiveness Terms: Included when the lender agrees to forgive part of the outstanding debt
3. Property Maintenance: Required when there's a significant gap between agreement and completion, specifying maintenance responsibilities
4. Third-Party Claims: Needed when there are additional lienholders or claims on the property
5. Tax Implications: Added when specific tax consequences need to be acknowledged
6. Personal Insolvency Provisions: Required when the short sale is part of a personal insolvency arrangement
7. Confidentiality: Optional section for keeping terms of the agreement private
8. Future Claims Waiver: Optional protection against future claims by any party
1. Schedule 1 - Property Details: Comprehensive legal description of the property and fixtures included in the sale
2. Schedule 2 - Existing Mortgage Details: Details of the current mortgage, including outstanding balance and terms
3. Schedule 3 - Payment Schedule: Detailed breakdown of the purchase price allocation and payment timing
4. Schedule 4 - Required Documentation: List of documents required from all parties to complete the transaction
5. Schedule 5 - Completion Requirements: Detailed checklist of all items needed for completion
6. Appendix A - Property Condition Report: Current condition of the property and any known issues
7. Appendix B - Lender's Consent Letter: Written confirmation from the lender agreeing to the short sale terms
Authors
Real Estate
Banking & Financial Services
Legal Services
Property Development
Mortgage Lending
Professional Services
Property Management
Financial Advisory
Legal
Real Estate
Property Management
Credit Risk
Mortgage Operations
Compliance
Valuations
Customer Relations
Financial Advisory
Debt Recovery
Real Estate Lawyer
Property Solicitor
Mortgage Advisor
Real Estate Agent
Bank Manager
Property Manager
Financial Advisor
Insolvency Practitioner
Conveyancing Solicitor
Credit Risk Manager
Property Valuation Specialist
Mortgage Underwriter
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