Philadelphia, Bucks and Montgomery Counties Real Estate. Tips for home buyers, home sellers by Gita Bantwal,Realtor at Re/Max Centre Realtors.: December 2010

In a Short Sale Transaction the "Arms Length Transaction Notice" means EXACTLY what it states.

This post by Broker Bryant should be read by every one. We are not lawyers and cannot give legal advice but we should know enough to say that we do not want to get involved with anything that does not sound right and they should seek legal advice.

Come join us at www.ShortSaleSuperStars.com

Hi folks. One of our Sellers over at www.ShortSaleSuperStars.com wants to know how to skirt around the 'Arms Length Transaction" requirement of his lender and continue to live in his house after the short sale by renting it back.

The language in the "Arm's Length Transaction Notice" is as follows:

  • "Affiant further says that there are no agreements or understandings, written or implied, that will permit Seller to remain in the above mentioned property as a renter or to regain ownership of said property at anytime after the execution of this short sale transaction"

The seller thinks thats:

"This is the wording in my arms length affidavit for my short sale. I know the offer that has been submitted to my lender is someone who is going to rent the property out. When the arms length affidavit was signed and also by the day of closing there will not be any discussion and there hasn't been and won't be any written agreement, any implication of me renting the property back.

I just don't think anyone understands this except lawyers. When I signed the affidavit there was no written or implied agreement. I never spoke to the buyers. At close of escrow there will have been no written or implied agreement. I will have never spoken to the buyers. I am looking for a lawyer to either back up what I am saying or tell me some case law that says I am wrong. You clearly are not a lawyer because you don't even understand what I am saying.

If I speak to the buyers AFTER the close of escrow and LONG AFTER I signed an agreement that said there was no written or implied agreement that I would rent out this property from them (there wasn't a written or implied agreement), there is nothing that says I can't NOW have a written agreement to rent the property from them."

My response was:

You're grabbing at straws. The language is not ambiguous. It's not about the timing of the signing. It's about the fact after closing. But certainly seek legal advice. If it's a battle you want to fight by all means fight it. Fighting it hear won't do you any good.

Your argument is like stating "I promise not to trespass on your property". Then signing an agreement to that affect. 2 days later you change your mind and trespass. When caught you go in front of the judge and try to explain that when you signed the agreement you had no intent of trespassing but then changed your mind. The judge will laugh at you and find you guilty. Make sense?

What do you think?

You can follow the conversation here.

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Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

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When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

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Comment balloon 3 commentsGita Bantwal • December 11 2010 06:50AM
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