What should Sellers know about FHA/VA Guidelines?
Sellers are sometimes surprised after the execution of a FHA or VA sales contract to discover certain repairs they are required to pay. Further, VA/FHA dictate certain closing costs, which the Purchaser is not allowed to pay. These closing costs are mandated seller’s costs. Thus, a wise seller presented with a VA/FHA offer should ask questions first, not later. To alleviate these concerns, a seller can cap the dollar amount of repairs or closing costs in the contract he/she is willing to pay. For example, an inserted contract clause limiting the seller’s total closing costs to a fixed dollar amount should specifically state “including all VA/FHA seller-mandated closing costs,” plus the deed preparation fee and termite inspection and/or treatment fee. What Is Specific Performance? This is an equitable remedy afforded to sellers and homebuyers, alike, in order to compel performance of a sales contract according to its terms rather than to recover money damages. The basis of this remedy i
