Arms Length Agreement / Affidavit
Pursuant to a residential purchase agreement ("Agreement"), the parties identified
below as "Seller(s)" and "Buyer(s)," respectively, are involved in a real estate
transaction whereby the real property commonly known as
will be sold by Seller(s) to Buyer(s).
holds a deed of trust or mortgage against the Property. In order to complete the
sale of the Property, Seller(s) and Buyer(s) have jointly asked Lender to discount
the total amount owed on the loan, which is secured by the deed of trust or mortgage.
Lender, in consideration for the representations made below by Seller(s), Buyer(s),
and their respective agents, agrees to a short sale on the express condition that
Seller(s), Buyers, and their respective agents (including, without limitation: real
estate agents, escrow agents, and title agents) each truthfully represents, affirms,
and states as follows:
- The purchase and sale transaction reflected in the Agreement is an "Arm’s Length
Transaction," meaning that the transaction has been negotiated by unrelated parties,
each of whom is acting in his or her own self-interest, and that the sale price
is based on fair market value of the Property. With respect to those persons signing
this Affidavit as an agent for either Seller(s), Buyer(s), or both, those agents
are acting in the best interests of their respective principal(s).
- No Buyer or agent of Buyer(s) agents is a family member or business associate of
the Seller(s) or the borrower(s) or the mortgagee(s).
- No Buyer or agent of Buyer(s) shares a business interest with the Seller(s) or the
borrower(s) or the mortgagee(s).
- There are no hidden terms or hidden agreements or special understandings between
the Seller(s) and the Buyer(s) or among their respective agents which are not reflected
in the Agreement or the escrow instructions associated with this transaction.
- There is no agreement, whether oral, written, or implied, between the Seller(s)
and the Buyers and/or their respective agents which allows the Seller(s) to remain
in the property as tenants or to regain ownership of the Property at any time after
the consummation of this sale transaction.
- The Seller(s) shall not receive any proceeds from the sale of the Property reflected
in the Agreement.
- No agent of either the Seller(s) or the Buyer(s) shall receive any proceeds from
this transaction except as is reflected in the final estimated closing statement
which shall be provided to Lender for approval prior to the close of escrow.
- Each signatory to this Affidavit expressly acknowledges that Lender is relying upon
the representations made herein as consideration for discounting the payoff on the
loan(s) which is/are secured by a deed of trust or mortgage encumbering the Property.
- Each signatory to this Affidavit expressly acknowledges that any misrepresentation
made by him or her may subject him or her to civil liability. I declare under penalty
of perjury under the laws of the state of that all statements made in this Affidavit
are true and correct.
- You can’t list the property with or sell it to anyone that you are related to or
have a close personal or business relationship with. In legal language, it must
be an "arm’s length transaction." If you have a real estate license, you can’t earn
a commission by listing your own property. You may not have any agreements to receive
a portion of the commission or the sales price after closing. Any buyer of your
property must agree to not sell the home within 90 calendar days of the date it
is sold by you. You may not have any expectation that you will be able to buy or
rent your house back after the closing. Any knowing violation of the arm’s length
transaction prohibition may be a violation of federal law.