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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Offset for Non-Disclosed Liens and Encumbrances Posted by Ward-CA- on June 15, 2003 at 9:48 AM In Reply to: Offset of funds due seller posted by Mark on June 14, 2003 at 10:35 AM : Hi Ward, : : I've got a signed EPA that the 5 days is up on Monday. During my due diligence I found several items that were not stated up front by seller. So I will be reducing the amount stated under the consideration section of the EPA. How do I account to the seller the reduction of net funds due him from the discovery of a Judgement and County enforcement fines and his understatement of Arrears? Do you have a form or can I use something like a HUD 1? : Thanks for such a great web forum : Mark =================== Mark, There is language in the EPA (Equity Purchase Agmt.) that states that if more liens and encumbrances are discovered than what was initially disclosed, they shall be deducted from the FMV (Fair Market Value) of the property prior to determining the net equity of same. As a consequence you need to document the subsequent offset amemdment and have it signed and dated by all parties to the EPA. You might call it, -Offset For Non-Disclosed Liens and Encumbrances-. Hope this helps. Follow Ups: restard the clock? Travis-CA 10:19 PM, 06/15/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, : : : : I've got a signed EPA that the 5 days is up on Monday. During my due diligence I found several items that were not stated up front by seller. So I will be reducing the amount stated under the consideration section of the EPA. How do I account to the seller the reduction of net funds due him from the discovery of a Judgement and County enforcement fines and his understatement of Arrears? Do you have a form or can I use something like a HUD 1? : : Thanks for such a great web forum : : Mark : =================== : Mark, : There is language in the EPA (Equity Purchase Agmt.) that states that if more liens and encumbrances are discovered than what was initially disclosed, they shall be deducted from the FMV (Fair Market Value) of the property prior to determining the net equity of same. : As a consequence you need to document the subsequent offset amemdment and have it signed and dated by all parties to the EPA. : You might call it, -Offset For Non-Disclosed Liens and Encumbrances-. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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