Hawaii General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust

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Multi-State
Control #:
US-01679BG
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Word; 
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Description

An assumable mortgage is one which lets a buyer take over the existing loan of a seller. Assumable mortgages require the lender's approval. The person who assumes a mortgage takes the same interest rate and monthly payment schedule as the original loan, which can result in big savings if the interest rate on the existing mortgage is lower than the current rate on new loans. However, the lender can change the loans terms. The person assuming a mortgage still needs to qualify for the loan and pay closing fees, including the costs of the appraisal and title insurance.


The lender also holds the seller liable for the loan. For example, if the person assuming the mortgage defaults on payments and the lender forecloses, but the property sells for less than the loan's balance, the lender can sue the seller for the difference.


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  • Preview General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust
  • Preview General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust
  • Preview General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust
  • Preview General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust
  • Preview General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust
  • Preview General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust
  • Preview General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust

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FAQ

The agreement outlines the terms of the sale, including the description of the goods being sold, the amount of consideration to be paid, the identification of the goods, payment and delivery details, warranties, and the right of inspection by the buyer.

Under a Hawaii Agreement of Sale, the Seller retains the legal title to the property, while permitting the Buyer to take possession of it for most purposes (along with its risks and liabilities) other than legal ownership.

Mortgage. A mortgage is an agreement between you and a lender that allows you to borrow money to purchase or refinance a home and gives the lender the right to take your property if you fail to repay the money you've borrowed.

Hawaii is a lien theory state and uses mortgages instead of deeds of trust.

A real estate purchase agreement is a legally binding agreement that governs the purchase and sale of a property. Made between a buyer and seller, it defines the terms of the transaction and the conditions under which a sale will occur.

The purpose of a sales agreement is to act as a legally binding contract between two parties involved in an exchange of money for goods, services, and/or property. One party is a buyer, while the other is a seller. Both the buyer and seller may be individuals or organizations.

The difference between a sale and an agreement to sell is that a sale transfers ownership of goods immediately, while an agreement to sell only promises to transfer ownership at a future date or upon certain conditions.

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Hawaii General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust