NACA Purchase & Sale Agreement Tip

Since you are responsible for paying any penalties arising from a P&S Agreement, regardless of the actions of NACA or the lender, it is highly recommended to choose a well established real estate professional to represent you. The following items should be addressed in your Purchase & Sale Agreement:

1. Eliminate from your Purchase & Sale Agreement:

a. Charges or penalties for closings past a certain number of days from the executed contract (per diem);
b. Loss of your earnest money deposit if the property does not appraise for the purchase price you agreed to; and
c. Loss of your earnest money deposit if your mortgage application is denied.

2. Include in your Purchase & Sale Agreement:

a. Correct spelling of your name; the same way it was entered on your NACA documents or as it appears on your picture ID;
b. Conditions requiring satisfactory NACA-approved home and pest inspector(s); this includes time to turn on utilities and undergo other evaluations or work write ups (i.e. description of the scope and cost of the work) if it requires a major renovation;
d. At least 45-to-60 days to close for properties requiring significant renovations, as identified on the home inspection, from the date of the executed contract;
e. Approved NACA and lender settlement agent to provide settlement services;
Note: when using an approved settlement agent, the participating lender pays the settlement agent’s fees and closing costs; however, if you request another settlement agent, he/she must be approved by both NACA and the lender and you are likely to incur significant additional costs.
f. Closing at a NACA office, a process which ensures that you have the support necessary to address issues that may delay or prevent a closing as well as to answer questions about loan terms and other matters.

Now, let’s talk for a moment about your potential thought “I’m nervous about all the negative reviews and people’s issues with closing”.

The simple fact is that “all the negative reviews” are a tiny fraction of the closings NACA does on a monthly basis. The 98 or 99 percent of people whose transactions go smoothly don’t post comments on line. They close on their home and get busy moving in.

Additionally in cases where there is a delay, the most common reason is an issue with the property itself such as repair issues, failure to appraise for the agreed upon price, or title issues. That’s why unless the home is new construction, the 45 to 60 days is to your advantage. If the seller is so eager that they MUST close in 30 days, be suspicious. If there’s nothing to be concerned with regarding the home, then the seller has no need to worry about the transaction closing in under 30 days. Protect YOUR best interest here, not his.

Don’t fall into the trap of drinking the kool-aid where a tiny handful of comments are concerned, and don’t let the seller back you into a corner that will potentially backfire on you.

Kristopher Fraley , Realtor

A few years ago a serendipitous event(purchasing a home through the NACA program with a 0% 30 year fixed interest rate) inspired me to become a licensed real estate agent in the DC, Maryland & Virginia area, and I love it! There is nothing greater than giving back and its a fantastic process that I feel lucky to participate in. With so many money hungry sharks preying on innocent people in the real estate industry, I feel honored when people trust my team to help them obtain the best terms on a mortgage possible. I can be reached by emailing kris@no-downpayment.com