You disclose everything. Make certain that you in NO way assist a buyer in concealing anything from a Lender. All funds that change hands are disclosed and listed on the HUD-1 closing statement. You are not making any material statements that are untrue, nor assisting the buyer in concealing anything from the Lender. No cash back after closing, no dischargeable 2nd mtgs.
Other than that you are pretty well absolved from any involvement of anything that the Buyer does, or doesn’t do.
Please could you brief me what is the best way or a great clause to write in my contracts when selling.
I want to cover my back from these large cash outs buyers
in case they are doing something wrong or they default short or long term into the loan.
I don’t want to be associated in either way with the buyer transaction I am just a seller.
I see lots of buyers cashing out and overleveragin I can already predict the end result. I dont want to be involved.
How do i release myself of any wrong doing when I am selling. Any good clauses?
Thanks in advance from your imput.
John