APPLICATION RECEIPT AGREEMENT,
Application Receipt agreement
The application receipt agreement states that the sum specified which consists of a portion which is the non refundable application fee as well as the reservation or earnest money fee is used to reserve the property. It is said in the document that incase the application is approved, the buyer accepts the property as per the terms of the document. All the funds are used for the move-in costs or it can be used for down payment when there is a purchase agreement. The management processes the application and the results are notified to the applicant by fax, mail or telephone. Incase the applicant decides that he or she does not want to buy or occupy the property or if they are not able to provide the information on request so that the application can be processed or even if they have not paid the move-in amount by the date which is agreed, in such cases the entire deposit amount is forfeited. This forfeiture is towards the liquidated damages as other tenants or purchasers are turned away and thus the management has to re-advertise and more applicants have then to be evaluated.
Incase however the application has been denied or if the financing cannot be secured, the deposit fees or reservation fees are refunded minus the out of pocket expenses which are incurred. These are towards the appraisal fees, surveys, inspections as well as credit reports or other fees. The management also isn’t responsible for carrying out repairs or improvements on the property.
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