Navigating the HUD Sales Contract

September 15, 2017

You have found the home for you! Now what? When you decide to put an offer in on a HUD property there are many forms that need to be filled out by the buyer and your real estate professional. We will break down the 27 page HUD Sales Contract below.

Electronic HUD-9548 Sales Contract/Condition of Sale

This part of the contract is where you will enter: the purchaser’s name, complete property address, the style in which title will be taken, the bid amount and amount of earnest money purchaser has deposited and who the closing agent will be. If Seller has offered the property with insured financing available, and Purchaser is buying under such means, check the first block and the applicable type of insured financing, and complete the down payment and mortgage information. If the insured mortgage involves a repair escrow (and has been so offered by Seller), also check the appropriate block and insert the amount of the repair escrow.

You will enter the amount of financing/closing costs the seller is expected to pay and the net amount due seller. Other items to be completed are the appropriate occupancy information and the appropriate back-up offer information. Purchaser(s) and the broker must initial in appropriate space.

Electronic filing of HUD-9548 contract addendum

This addendum serves as a certification of accuracy that the buyer has reviewed everything prior sending the contract to HUD.

Owner-Occupant Certification

The owner-occupant certification serves a check that the buyers have not purchased a HUD-owned property with the past 24 months and requires the signatures of the purchasers and the brokers.

“For Your Protection:  Get a Home Inspection”

Most buyers select to have a home inspection completed, as the inspection will provide the buyer more detailed information about the overall condition of the home. During a home inspection, there will be an evaluation of the physical condition of the structure, construction and mechanical systems. Items that need to be repaired or replaced will be identified.

Radon Gas and Mold Notice

The radon gas and mold notice states that the buyer acknowledges and accepts that the HUD-owned property is being offered for sale “AS-IS” with no representations as to the condition of the property.

Lender Letter of Commitment/Pre-Qualification Letter

A pre-qualification letter or proof of funds (for cash purchase) must be submitted with all Sales Contracts packages. This tells HUD that the buyer truly does have the means to purchase the home.

Forfeiture & Extension Policy

This policy ensures that the buyer is aware of HUD’s policy in terms of when their deposit will and will not be returned to them. Sometimes an extension is necessary in order to close the property. The extensions must be made in writing and may or may not have a fee that is applicable. Your HUD agent will be able to discuss the different scenarios with you. There are many items for the buyer to initial and sign.

Lead-Based Paint Addendum

This addendum serves as a warning to the buyers to be aware that properties built before 1978 may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning.

Flood Zone Addendum

The flood zone addendum is only required on FHA contracts for properties that are located in a flood zone. It states that if the property is in a flood zone, the purchaser will maintain flood insurance for coverage of equal to or greater than the replacement value.

BSCA Addendum

This agent is in addition to your Realtor® and must be an attorney, Title Company or escrow company and follow applicable federal, state and local laws for your state. Buyer Select Closing Agents must be registered with Sage Acquisitions and complete the necessary training provided in order to receive access to the system’s portal.

The Buyer Select Closing Agent will support you through the closing process, explain the scheduling, document preparation and get your new deed for the property.

Earnest Money

The Earnest Money Deposit is a buyer’s deposit towards the purchase of real estate to demonstrate that they are serious about wanting to complete the purchase. Within two business days of being notified that their buyer is the winning bidder the buyer’s agent must deliver the earnest money to the listing broker for forwarding to the Closing Agent.

The earnest money deposit must be in the form of a cashier’s check, certified check, or money order with no termination date or cancellation provision, payable to the Closing Agent.

The earnest money deposit amount is as follows:

Common Errors

To ensure a smooth transaction avoid these common errors:

Sage Acquisitions will sign off on the contract and forward it via email to the listing broker and the closing attorney. The ratified contract date is the contract’s official “Acceptance Date”.

Have more questions about the HUD Sales Contract, contact one of our Berkshire Hathaway HomeServices Hodrick Realty offices today, Williamsport 570-321-7000, Lewisburg 570-523-1000, Danville 570-275-7696 or Lock Haven 570-748-9572.

You can search online for available HUD homes on This database allows you to search by state, county or zip code. For additional information on the HUD process visit



Want More? Our Inside Access will provide you with real estate tools and tips and listings right to your inbox.
button copy

©2017 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc. ® Equal Housing Opportunity.




Go Back