Tips For Completing a HUD Sales Contract


Knowing how to complete a HUD sales contract (also known as a HUD-9548) is an important skill for any sales agent. The following is a collection of tips and advise to assist agents when completing a HUD Sales Contract and the related Addendums. The easiest place to start is visit the Asset Manager’s (AM) web site and locate the forms page. You will find contract and addendum forms. In many cases they are easy to complete, questionnaire type that will make sure you fill in every blank accurately.

HUD Sales Contract 9548

Here is a guide to each line in the contract

Line 1

Type purchaser(s) name and complete property address. Make sure to type in the county.

Line 2

Enter name(s) and style in which tile will be taken. Please match the name exactly as on line 1 and the STYLE they are taking title (individual, married, etc.)

Line 3

Enter bid amount and amount of the earnest money (which is $500 if $50,000 or under or $1000 if $50,001 and over) and fill in that it will be held by HUD. Please send this in a cashier’s check or money order (NO personal checks) paid to the order of HUD.

Line 4

Make sure the appropriate box is checked for the type of financing your buyer is getting and in compliance with what seller’s offering . If FHA 203(b) repair escrow, then check “said mortgage involves a repair escrow amounting to $___” and fill in amount. Also leave blank or enter TBD (to be determined) the three spaces for down payment, mortgage loan amount and the number of months.

Line 5

Enter the amount of financing/closing cost submitted on your bid. HUD pays closing cost up to 3% of the purchase price. If inserted on line 5 of the HUD Sales Contract when the electronic bid is submitted. What are the reasonable and customary costs the seller will pay? Note: Closing Costs Paid By HUD have changed with the Buyer Select Closing Agent Program. If the property purchased is located in one of these areas HUD will no longer pay the Settlement Fee. In Non-buyer select areas HUD closing agents are still utilized and this fee will be paid.

The following is a list of Closing Costs Paid By HUD:

  • Proration of property taxes and any special assessments such as Homeowner’s Association (HOA) fees and utility bills
  • Condominium or HOA Transfer Fee, if applicable
  • Cost to provide condominium documents to purchaser. (If paid in advance seek prior approval to ensure reimbursement)
  • $200 repair escrow hold fee, if applicable
  • Recording fee for grant deed only

Line 6

Enter dollar amount of commission to be paid by seller as submitted on your bid.

Line 7

Enter net amount due seller as submitted on your bid.

Line 8

Enter buyer type (owner occupant or investor)

Line 9

Enter in accordance with AM Contractors instructions for closing dates. Cash contracts need to state will close in 30 days. On the second blank if your purchaser would like to use a different closing agent at their own expense you can fill in the blank with the closing agency they will use (otherwise it will be closed with HUD’s designated closing agent)

Line 10

Enter appropriate back up offer information.

Line 11

Check the appropriate boxes.

Line 12

Purchaser(s) must initial in appropriate space

Line 13

Make sure to write in your purchaser’s phone number under the signature line, and have them date the contract when they sign it. Always have the managing broker sign the contract and the owner/occupant certification in original blue ink signatures.

If this is an investor bid please make sure that the company name is on Line 1 and 2 of the contract. Also make sure that you include the company paperwork and proof of EIN number from the IRS.

Salespeople Using A Power of Attorney for their Broker the proper format for the signature is: “Broker of Record name, by Person Signing contract, POA”

Sales Contract Addendums:

There are several addendum forms that will need to be included with your contract package. Depending on your type of buyer and property, the HUD Sales Contract will require additional agreements/addendums to complete the package. The following provides a list of documents to be attached to the Sales Contract and others that might be needed. Please note: each Asset Manager presents the Addendums in a unique manner and may also have other form requirements. Other than the HUD contract (that is standardized) please refer to the Asset Managers website.

Attach the following Addenda if they apply to your sale:

Owner-Occupant Certification if purchaser is an owner-occupant. All bids by owner-occupants, who are purchasing properties listed in the owner-occupant category, must include an Owner-Occupant Certification. The Certification must be signed by the buyers and the selling agent’s broker of record if the offer was submitted as an owner occupant purchase. They have to indicate that they have not purchased a HUD owned home in the last 24 months as an owner occupant and they will live in it for 12 months. If there is another party to the contract, co-signing but not intending to occupy, that party should NOT sign the owner occupant addendum. A letter should be included in the contract package stating the party is on the contract for financial reasons and does not intend to occupy the home.

Sanctions will be immediately imposed upon Brokers, Agents and Investors found to be abusing the system.

  • Forfeiture & Extension Policy (Addendum A, Rev. 6/15/2009)
  • Lead Paint Addendum, if the property was built prior to 1978. The Lead Based Paint Addendum is property specific and will be posted with the property listing.
  • For Your Protection: Get a Home Inspection.
  • Notice to Purchaser Addendum when the offered amount exceeds the appraised value at the time the offer is submitted.
  • Radon Gas and Mold Notice and Release Agreement.
  • Flood Zone Addendum (if applicable)
  • Mortgage Pre-Qualification Letter from a lending institution, if the purchase is to be mortgaged, stating that an in-house credit check has been performed and the purchaser has been pre-qualified for a mortgage up to a specified mortgage amount.

The Pre-Qualification letter must:

  • Be on lender letterhead
  • Include the Property Address
  • Give the name(s) of the people listed on the contract
  • Must be dated within 30 days of the bid acceptance
  • Have the correct loan amount (must meet or exceed gorss purchase price)
  • The type of loan
  • Note that “the credit has been approved”, signed by the loan office (no digital signatures)

Cash Purchase

  • Copy of bank statement verifying funds are available
  • Account number can be blacked out on bank statements or other documents
  • Purchaser’s name must be on the bank statement or other documents
  • Statement must be within 30 days of bid acceptance date
  • Available account balance must meet or be greater than the gross purchase price

Avoid Common Errors 

  • To be acceptable, hard copies must contain no errors and done in BLUE ink.
  • You can’t use white out or liquid paper on a contractual documents.
  • Do not use a yellow highlighter on the contractual documents. The document will not scan properly for HUD with highlighter on it.
  • Make sure social security numbers are on listed on the contract.
  • The buyers name must match exactly on lines 1,2 and 13 on the contract.
Get Your Free Rental Analysis
Curious how much your house could rent for? Don’t leave it to guesswork. Fill out the form below for your free, no-obligation rental analysis report.
WILMOTH Group Rental Analysis
WILMOTH Group Property Management