All contract documents must go to the lender
February 24, 2012, by Mark Wheeler
I was recently is a situation where I represented the buyers in a transaction, and the sellers’ agent got upset with me for sending a fully signed repair addendum to the buyers’ lender. He even tried to tell me that I had agreed to not send the addendum to the lender, which is ludicrous. This was the first I had heard of this cockamamy plan.
I was floored. This was not a new agent, and this person works for a large, well known real estate brokerage.
Buyers & Sellers: All contract documents, including the original offer, and any counter offers & addenda will be sent to the buyers’ lender. This is standard operating procedure. Buyers will have to sign a document at close of escrow stating that there are no other contract documents, sometimes known as “side agreements,” between buyers & sellers that have not been sent to the lender. If any contract documents are not disclosed to the lender, that is considered fraud.
We do not participate in fraud; honesty is always the best policy.