Sales Contract Package

Contract Documents must be received within 2 business days after the internet posting of bid results. Therefore, the Contract package should be completed with your purchaser PRIOR to placing the bid. This allows for two benefits; first, the sales contract outlines the electronic bid submission form and can be used to fill in the bid information, second, if your bid is awarded the package can be sent via overnight mail to be received within the deadline. The successful bidder MUST submit a completed sales package by OVERNIGHT MAIL, which consists of the following:

1. Sales Contract – HUD form 9548 (1/99)
2. Conditions of Sale - must be signed
3. Copy of Earnest Money check.
4. Forfeiture and Extension Policy
5. Broker’s Agreement to Abide by HUD’s earnest money forfeiture policy
6. Lead Based Paint Addendum - if applicable.
7. Radon Gas and Mold Notice and Release Agreement
8. Owner Occupant Certification – HUD form 9548D (1/98) - if applicable
9. Pre-qualification letter or for cash sales provide verification of funds.

Please Note: New versions of addenda may be available. Please check the website for Announcements or new forms.

FOR ARIZONA AND NEVADA SEND THESE DOCUMENTS BY OVERNIGHT MAIL TO:

Michaelson, Connor & Boul, Inc.
6908 E. Thomas Road, Suite 200
Scottsdale, AZ 85251

FOR COLORADO, MONTANA, UTAH, AND WYOMING SEND THESE DOCUMENTS BY OVERNIGHT MAIL TO:

Michaelson, Connor & Boul, Inc.
4500 Cherry Creek Dr., Suite 1070
Glendale, CO 80246

Errors and Omissions
If your contract package contains any errors or omissions your bid may be cancelled and the property placed back on the market or the back up bidder notified. Please be careful when filling out the contract and addenda and be sure it is complete and correct.

1. Sales Contract – HUD form 9548 (1/99): Line by Line
Electronic Version: You may download and use the electronic version of this form so long as the “Conditions of Sale” is signed by all buyers, and you do not make any copies of the PDF contract (the form used must be from the Printer). To produce a form that is filled out you would need to enter the HUD case number and your confirmation number. In that instance you would enter information only on Line 2, Line 12, and Line 13 (see particulars below). If you elect to fill in the contract manually please follow the directions below.

Line 1 – Complete the Purchaser(s) name(s) and Address of the property including City, State, and Zip Code. Fill in the HUD case number in the designated box and write the confirmation number above the box. These Contracts are not assignable. The Purchaser whose social security number was used in the bid must appear on the contract.

Line 2 – Fill in the purchaser(s) name and legal style. The HUD closing agent will prepare a deed to transfer ownership according to this line. This line may not be left blank or “to be determined”.

Line 3 – Enter the purchase price (the bid price) and Earnest Money deposit. Deposit checks must be written out to the brokerage and must be in the selling broker’s possession PRIOR to placing a bid. Earnest money deposits should be in the form of a certified check, cashier’s check, or a money order.
o Sales price up to $49,999 earnest money deposit = $500
o Sales price $50,000 and up earnest money deposit = $1,000
o Vacant Lot: ½ of the purchase price of the property.

Line 4 – Financing Type
If your purchaser is applying for FHA Financing
1. Property listed IN: 203(b)
2. Property listed IE: 203(b) with Repair Escrow

• Add the repair escrow amount where the contract states: “Said Mortgage involves a repair escrow amounting to $__________”
• ONLY IF THE PURCHASER IS OBTAINING AN FHA 203(b) REPAIR ESCROW LOAN – do not fill in an escrow amount if the purchaser is paying cash or getting a loan not involving FHA.

3. Property listed UI: 203(k)

• If the property qualifies for 203(k) financing.

4. Non-FHA financing

• Purchaser is paying cash or applying for conventional or other financing not involving FHA.
• If purchaser is paying cash please circle the word cash and be sure to include in your package a verification of funds.

Please leave all other mortgage information BLANK

• down payment, mortgage amount, and months

Line 5 – Closing Costs up to 3% of the purchase price. Closing costs can be found on page 2 of the Forfeiture and Extension Agreement.

Line 6a – Selling agent commission up to 5% of the purchase price.

Line 6b – N/A

Line 7 – Net to HUD – line 3 minus lines 5, and 6. Please be sure your math is correct on this line.

Line 8 - Purchaser type: Investor or Owner Occupant. Misrepresenting a purchaser as an Owner Occupant is a SERIOUS offense that may constitute fraud and may result in an investigation of the Broker, Agent and Purchaser by the office of the Inspector General. Leave Discount amount blank. (Discounts for OND/TND and Non-Profit purchasers only)

Line 9 - Sales transactions shall close not later than 45 days from seller’s acceptance. Properties may close in less than 45 days but 45 days MUST be on the contract. If closing does not occur by 45 days then extension fees will apply.

Line 10 – Back-up offers – Does not apply – you should only send in a sales contract package if you are the accepted bidder. Contract packages received that are not from the awarded bidders will be discarded without notification.

Line 11 - If the property was built prior to 1978 please mark line 11 “is” attached. Always mark that other addendum “is” attached, every contract package must also contain the other required addenda.

Line 12 – HAVE PURCHASER(S) INITIAL CONTRACT HERE- Please double check that ALL purchasers have initialed this box before sending the contract package.

Line 13 – Purchaser information: Please be sure all information is written in the correct boxes.

• Type or print name.
• SIGNATURE(S) – All purchasers’ signatures are required. Contracts that are received without the purchaser’s signature may be cancelled immediately and placed on the market.
• Social Security Number or EIN/FIN for ALL purchasers.
• Purchaser’s address, and phone number.
• Date Contract was signed.
• DO NOT have purchasers sign in the “Seller” box or the “Authorizing Signature & Date:” Box. This is to be used by the authorized HUD signing agent ONLY.

Certification of Broker

• Broker’s Name and business address
• Broker’s EIN or SSN#
• Signature of broker – Broker (or individual given written permission to sign as the broker, such as an office manager)
• SIGNATURE STAMPS are not allowed.
• Broker’s Phone Number with Area Code.
• Agent’s Full Name.
• Agent’s Phone Number with Area Code.

2. Conditions of Sale
The Conditions of Sale page is attached to the sales contract and must be signed by all purchasers.

3. Copy of Earnest Money Deposit
A copy of the money order or certified check is a required portion of the sales package. Earnest Money is held by the Selling Broker. A copy of the deposit slip of the Earnest Money into the broker’s account is also acceptable.
Sales price up to $49,999 earnest money deposit = $500
Sales price $50,000 and up earnest money deposit = $1,000
These amounts are not negotiable.

4. Forfeiture and Extension Policy
This 3 page form is an explanation of forfeiture and refund of earnest money deposits for Owner Occupants and Investors as well as acceptable closing costs and extension of closing date request guidelines.
Please be sure this document is read and signed by all purchasers.

5. Broker’s Agreement to Abide by HUD’s Earnest Money Forfeiture Policy
This document MUST be signed by the BROKER not the agent or an individual authorized in writing to sign on the broker’s behalf. Signature stamps are NOT ALLOWED.

6. Lead Based Paint Addendum
If the property was built prior to 1978 this addendum is required. This 1 page form must be signed by all purchasers and agent or broker.

7. Radon Gas and Mold Notice and Release Agreement
This agreement must be signed by all purchasers.

8. Owner Occupant Certification - HUD form 9548D (1/98)
Required for all Owner Occupant Purchasers – must be signed by all purchasers and the broker, not the agent – Stamp signatures are not acceptable.

9. Pre-Qualification Letter or Proof or Funds for Cash Sale
A Letter of Commitment or a Pre-Qualification Letter - from an industry recognized bank or mortgage underwriter. For cash sales, provide verification of cash funds. This can be a bank statement, letter from a bank, or other forms or verifications that provide evidence that cash funds will be available.