RECOMMENDED BUYOUT PROCEDURE
(Pursuant to Paragraph 18 of the Order for Appointment of Real Estate Special Commissioner)
Purpose
This recommended procedure is intended to establish a clear process for one party to purchase the other party's interest in the real property pursuant to Paragraph 18 of the Order for Appointment of Real Estate Special Commissioner ("Order"), the parties' Rule 69 Agreement, Decree of Dissolution, and any subsequent Court orders.
1. Notice of Intent to Purchase
A party seeking to purchase the other party's interest in the property ("Purchasing Party") shall provide written notice to the other party and the Special Commissioner of their intent to exercise the buyout option.
2. Submission of Bona Fide Offer
The Purchasing Party shall submit a bona fide written offer to purchase the other party's interest in the property. The offer shall include:
a. The proposed fair market value of the property;
b. The proposed calculation of the buyout amount;
c. A detailed accounting of all credits, debits, reimbursements, equalization payments, liens, mortgages, commissions, fees, and other adjustments required by the Rule 69 Agreement, Decree, or Court orders;
d. The proposed closing date;
e. A lender’s pre-qualification letter and/or proof of funds sufficient to complete the transaction
f. A copy of all supporting documentation relied upon in determining value and the proposed buyout amount.
A copy of the offer and all supporting documents shall be provided simultaneously to the other party and the Special Commissioner.
3. Lender Requirements
Any lender involved in the transaction shall:
a. Be informed that the transaction arises from a court-ordered buyout;
b. Utilize the title company designated or recommended by the Special Commissioner;
c. Cooperate with the Special Commissioner and title company in preparing settlement \statements and closing documents; and
d. Provide updated loan approval information upon request.
