Contracts

Free Subject To Real Estate Contract Template

A subject to purchase agreement with the addendum and seller disclosures.

Subject to existing loan financing terms
Seller carryback and wrap note
Subject to addendum and seller documents

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What Is Inside

This free subject to real estate contract package helps investors buy a house while leaving the seller's mortgage in place. It includes a Sub2 purchase agreement, an addendum, seller disclosures, and a seller acknowledgements form. It is not legal advice and should be reviewed by a local real estate attorney before you use it.

The Purchase and Sale Agreement Subject To is built for buying a home while the existing loan stays in place. Its financing section captures the approximate first and second mortgage balances, any seller carryback amount, past due amounts to cure at closing, cash at close, and balloon terms. It includes language for a non recourse seller carryback note that mirrors the existing loans and has no due on sale clause.

The Subject To Addendum lists the documents the seller signs before closing: lender and insurance authorizations, change of address, an escrow letter, a limited power of attorney, and an assignment of insurance proceeds. It spells out buyer and seller warranties, including what happens if the lender calls the loan due. A Seller Disclosures section needs initials on items like ongoing liability, credit impact, and loss of the mortgage interest deduction. A separate Seller Acknowledgements form confirms the seller understood the deal and was not pressured. Have a local real estate attorney review the package first.

What it covers

Subject to existing loan financing terms
Seller carryback and wrap note
Subject to addendum and seller documents
Limited power of attorney and insurance assignment
Due on sale clause risk
Seller initialed disclosures
Seller acknowledgements and no pressure statements

Who This Is For

Investors doing creative finance deals
Wholesalers who want a subject to option for low equity sellers
Teams who want a starting point to bring to their attorney

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Frequently Asked Questions

What is a subject to real estate deal?

In a subject to deal, the buyer takes title to the home while the seller's existing mortgage stays in the seller's name. The buyer makes the loan payments from then on. It can help sellers who are behind on payments or have little equity.

What is the due on sale clause risk?

Most mortgages have a due on sale clause that lets the lender call the full loan due if the home is transferred. Lenders do not always use it, but they can. This package includes disclosures and addendum terms that address what happens if the loan is called.

Is a subject to deal legal?

Subject to deals are legal in many states, but some states have added rules to protect homeowners in foreclosure. The seller must clearly understand they stay liable on the loan. Have a local real estate attorney review your contract and process.