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Foreclosure Buyers Beware: Read that Fine Print!

May 20, 2009 by  
Filed under Buying, Finance

Watch for this Clause:

Transfer taxes/Tax StampsRegardless of local custom or practice, the purchaser shall pay and all real estate transfer taxes due as a result of the conveyance of this property.

An agent informed us that she and her buyer had missed the clause above when the lending bank selling a foreclosed property countered with their purchase and sale agreement paperwork.  With more and more buyers moving towards the purchase of foreclosed properties, we had to make the communication for the record.  It is ultimately YOUR responsibility to read your documents thoroughly and be aware of what you’re signing!  Fortunately, the buyer in mention had a sizeable downpayment (as any foreclosure buyer must have) so they were able to increase their loan amount to cover the extra $6,200 this clause covered.  Still, that’s too much money to overlook.