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#1391701 - 05/15/10 12:45 AM Contract Sales Price
VRV Offline
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Joined: Jun 2007
Posts: 173
The instructions for completing the HUD state that Line 101 is for the "contract sales price of the property being sold, excluding the price of any items of tangible personal property if Borrower and Seller have agreed to a separate price for such items."

We have a purchase contract for someone buying a new construction condo from the builder. The contract states a base price, then adds sums for options and upgrades, then shows a Total Purchase Price. Then the contract subtracts a deposit made by the buyer and also subtracts sums called "Developer Credit" and "Upgrades Credit", leaving a sum labeled the "Balance."

I don't know what the Developer Credit and Upgrades Credit do, except obviously lower the bottom line amount the buyer is paying for the condo. I don't know why they would do this instead of just lowering the purchase price. But since the contract labels the amount before these credits as the Total Purchase Price, is that the amount that should go on Line 101 of the HUD, and then show these Credits under "Amounts Paid by or in behalf of Borrower?" Or should the bottom line amount (after the Credits are deducted) be listed on Line 101, and the Credits not separately listed on the HUD?

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#1391755 - 05/17/10 12:42 PM Re: Contract Sales Price VRV
RR Joker Offline
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Posts: 20,654
The Swamp
I would list the "net" price as that is the actual contracted sales price, IMHO. The reason they are doing it that way is to show what the upgrades normally cost and then the seller is incenting with a credit. Looks better on paper that way. wink
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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