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This form is used by an agent when negotiating the sale of property encumbered with mortgage balances in excess of the purchase price and the purchase agreement form used does not provide for lender approval of a discounted payoff, to prepare as an addendum a boilerplate short payoff further-approval contingency provision.


Your use of RPI Form 274

The short sale purchase agreement addenda

For a real estate transaction conveying fee ownership of a property, the primary document a buyer’s agent uses to negotiate their buyer’s acquisition of property is a purchase agreement. [See RPI Form 150-159]

The use of different varieties of purchase agreements is required for different types of properties, buyers and financing arrangements. The various purchase agreements contain provisions necessary for the buyer’s agent to readily negotiate the purchase of a particular property with a particular seller.

When a buyer intends to finance their purchase using Federal Housing Administration (FHA) or Department of Veterans Affairs (VA) financing, brokers and agents may structure the short sale transaction using RPI’s FHA or VA variations of the purchase agreement and attach RPI’s Short Sale Addendum – Loan Discount Approval – Form 274 containing the mortgage discount approval language. [See RPI Form 152,153 and 274]

The language contained in the Short Sale Addendum mirrors the short sale contingency provision contained in Form 150-1.

Editor’s note — RPI publishes a wide selection of purchase agreements which cater to different types of transactions, such as principal-to-principal and commercial property acquisitions. [See RPI Form 150-159]

Revision history

Form navigation page published 12-2015.