Made an offer on countrywide owned home, addendum says I waive the right to avoid sale due to condition, etc..?

One part says I waive my right to avoid the sale of the home. Another part says I should get a home inspection done within 10 days and then have 5 days after showing to seller to revoke contract if I don't like it. I received this today (saturday) and the seller (countrywide) says I have to sign and return by Monday - the first business day I could possibly get a home inspection when the utilities won't even be turned on.... HELP! Does this addendum say what I think it says? btw, my financing was accepted as FHA

Copy of addendum:

BUYER (Initials)________________ - 1 -

SELLER (Initials)_______________

Revised 3/06

REO #____________________

Countrywide Home Loans, Inc.

REAL ESTATE PURCHASE ADDENDUM

This Real Estate Purchase Addendum (“Addendum”) is to be made part of, and incorporated into, the Real Estate Purchase

Contract dated ___________________________ ("Contract”) between

("Seller" and the term “Seller” shall also include Countrywide Home Loans, Inc.) and

("Buyer") for the property and

improvements located at the following address:

("Property"). Buyer and Seller may each be referred to herein as a “Party” and collectively as the “Parties.”

The Contract and this Addendum together constitute the “Agreement”.

The Seller and the Buyer agree as follows:

1. LIMITATION OF SELLER’S LIABILITY AND BUYER’S WAIVER OF IMPORTANT RIGHTS:

BUYER UNDERSTANDS AND ACKNOWLEDGES THAT SELLER HAS ACQUIRED THE PROPERTY

THROUGH FORECLOSURE, DEED-IN-LIEU OF FORECLOSURE, OR SIMILAR PROCESS, SELLER

HAS NEVER OCCUPIED THE PROPERTY, AND SELLER HAS LITTLE OR NO DIRECT KNOWLEDGE

ABOUT THE CONDITION OF THE PROPERTY. BUYER AGREES THAT BUYER IS BUYING THE

PROPERTY “AS IS” (AS MORE FULLY SET FORTH IN SECTION 13 OF THIS ADDENDUM).

NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN THE AGREEMENT, SELLER’S

LIABILITY AND BUYER’S SOLE AND EXCLUSIVE REMEDY IN ALL CIRCUMSTANCES AND FOR

ALL CLAIMS (AS THE TERM IS DEFINED IN SECTION 26 OF THIS ADDENDUM, AND ALL

REFERENCES IN THIS ADDENDUM TO “CLAIMS,” “CLAIM,” “Claims,” or “Claim” SHALL HAVE

SUCH MEANING) ARISING OUT OF OR RELATING IN ANY WAY TO THE AGREEMENT OR THE

SALE OF THE PROPERTY TO BUYER INCLUDING, BUT NOT LIMITED TO, SELLER’S BREACH OR

TERMINATION OF THE AGREEMENT, THE CONDITION OF THE PROPERTY, SELLER’S TITLE TO

THE PROPERTY, THE OCCUPANCY STATUS OF THE PROPERTY, THE SIZE, SQUARE FOOTAGE,

BOUNDARIES, OR LOCATION OF THE PROPERTY, ANY COST OR EXPENSE INCURRED BY

BUYER IN SELLING A CURRENT OR PRIOR RESIDENCE OR TERMINATING A LEASE ON A

CURRENT OR PRIOR RESIDENCE, OBTAINING OTHER LIVING ACCOMMODATIONS, MOVING,

STORAGE OR RELOCATION EXPENSES, OR ANY OTHER COSTS OR EXPENSES INCURRED BY

BUYER IN CONNECTION WITH THE AGREEMENT SHALL BE LIMITED TO NO MORE THAN:

(A) A RETURN OF BUYER’S EARNEST MONEY DEPOSIT IF THE SALE TO BUYER DOES NOT

CLOSE; AND

(B) THE LESSER OF BUYER’S ACTUAL DAMAGES OR $5,000.00 IF THE SALE TO BUYER CLOSES.

BUYER SHALL NOT BE ENTITLED TO A RETURN OF BUYER’S EARNEST MONEY DEPOSIT IF

BUYER MATERIALLY BREACHES THE AGREEMENT.

BUYER AGREES THAT SELLER SHALL NOT BE LIABLE TO BUYER UNDER ANY

CIRCUMSTANCES FOR ANY SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES

WHATSOEVER, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT

LIABILITY), OR ANY OTHER LEGAL OR EQUITABLE PRINCIPLE, THEORY, OR CAUSE OF

BUYER (Initials)________________ - 2 -

SELLER (Initials)_______________

Revised 3/06

ACTION ARISING OUT OF OR RELATED IN ANY WAY TO ANY CLAIM, INCLUDING, BUT NOT

LIMITED TO, THE AFOREMENTIONED CLAIMS.

ANY REFERENCE TO A RETURN OF THE BUYER’S EARNEST MONEY DEPOSIT CONTAINED IN

THE AGREEMENT SHALL MEAN A RETURN OF THE EARNEST MONEY DEPOSIT, LESS ANY

ESCROW CANCELLATION FEES APPLICABLE TO THE BUYER UNDER THE AGREEMENT AND

LESS FEES AND COSTS PAYABLE FOR SERVICES AND PRODUCTS PROVIDED DURING ESCROW

AT THE BUYER’S REQUEST. TO THE FULLEST EXTENT PERMITTED BY LAW THE BUYER

WAIVES ANY CLAIMS THAT THE PROPERTY IS UNIQUE AND THE BUYER ACKNOWLEDGES

THAT A RETURN OF ITS EARNEST MONEY DEPOSIT CAN ADEQUATELY AND FAIRLY

COMPENSATE THE BUYER FOR ALL CLAIMS. UPON RETURN OF THE EARNEST MONEY

DEPOSIT TO THE BUYER, THE AGREEMENT SHALL BE TERMINATED, AND THE BUYER AND

THE SELLER SHALL HAVE NO FURTHER LIABILITY, OBLIGATION, OR RESPONSIBILITY TO

EACH OTHER IN CONNECTION WITH THE AGREEMENT. IF THE SALE TO BUYER CLOSES AND

SELLER COMPENSATES BUYER AS PROVIDED ABOVE FOR BUYER’S ACTUAL DAMAGES, IF

ANY, THEN THE BUYER AND THE SELLER SHALL HAVE NO FURTHER LIABILITY,

OBLIGATION, OR RESPONSIBILITY TO EACH OTHER IN CONNECTION WITH THE

AGREEMENT.

SELLER’S LIMITATION OF LIABILITY AND BUYER’S WAIVERS PROVIDED IN THE AGREEMENT

ARE A MATERIAL PART OF THE CONSIDERATION TO BE RECEIVED BY THE SELLER UNDER

THE AGREEMENT AS NEGOTIATED AND AGREED TO BY THE BUYER AND THE SELLER.

THE BUYER FURTHER WAIVES THE FOLLOWING, TO THE FULLEST EXTENT PERMITTED BY

LAW:

(A) ALL RIGHTS TO FILE AND MAINTAIN AN ACTION AGAINST THE SELLER FOR SPECIFIC

PERFORMANCE;

(B) RIGHT TO

Update:

Looks just like this: http://www.placercountyhomesandland.net/files/coun...

This is a generic copy I found, but it is the same exact one I was given. We are getting FHA loan and they accepted our offer on the house... and then sent the addendum. On one part it says we waive the right to stop sell of property due to condition, structure, etc. On another it says we have 10 days to get inspection? Does this mean we can't get out of contract even if the inspection turns out bad? I just got this paper today (saturday) and they said they have the have it back by Monday - the first day I could possibly get an inspection done when the utilities won't even be turned on yet. WHAT TO DO?

7 Answers

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  • 1 decade ago
    Best Answer

    Definitely get your real estate agent involved - there is conflicting info in here. It's basically saying if you want the property, you'll take it as-is and they have no intention of fixing anything that is broken, etc. I don't know why they'd want it back by Monday if you haven't even gotten an inspection yet - it seems odd. BTW - FHA may not approve the loan if the condition is poor - they REQUIRE certain things be fixed before closing, so you need to be sure there's nothing major wrong before giving up any deposit money for this place when you back out, or you need to be prepared to fix it out of pocket prior to close. If you don't have a real estate agent, GET ONE to help you out here.

  • godged
    Lv 7
    1 decade ago

    I didn't read this whole post, but I have had this situation occur.

    FHA does indeed require an inspection, but in my area they call it an appraisal, which is only done by a handful of appraisers, and has some very specific inspection criteria that the house must comply with.

    The home inspection protects you, gives you the right to opt out or renegotiate if conditions exist, and I would never recommend a buyer enter into a contract without a whole home inspection.

    Source(s): Oregon Realtor
  • Pamela
    Lv 4
    4 years ago

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  • 1 decade ago

    Countrywide foreclosures always have a as is addendum. If you cannot get financing due to the condition of the property your realtor should ask them to do lender required repairs. If they are minor Countrywide generally will do them. Your lender should be helping you out. All foreclosures have as is addendum's. If the property is in bad condition you should not be trying to do an FHA loan on it. Call your lender asap and describe the property and ask if they will have any problems with the condition.

    ***Also all Countrywide foreclosure properties have a Countrywide loan consultant who you can call about the property. If you are freaked out and your lender sounds unsure call the Countrywide consultant. They should help you out

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  • 1 decade ago

    Here is the thing:

    1. If you sign something stating that you WAIVE the right to stop the sell due to condition, structure, etc....then you WAIVE it.

    2. The inspection IS NOT required, and legally, they cannot stop you from getting one, and if you choose to get one, you have 10 days to do it in...but if you SIGN THE WAIVER, it doesn't matter if the inspection shows $50K in termite damage, you still have to buy the house.

    FHA does NOT require an inspection.

    What to do? If you sign something like that, you are crazy.

    No way in 40 forevers would I advise a client to sign such nonsense.

    Source(s): former FHA/VA underwriter
  • AJ
    Lv 7
    1 decade ago

    Any addendum supercedes anything in the actual contract.

    However, your realtor should have told you this. I don't know why you are posting this type of question here, when you are paying your realtor to advise you on these types of questions.

  • Anonymous
    1 decade ago

    Aren't you using a realtor? He/she should be advising you.

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