This is a disclosure, intended to disclose some of the facts and conditions that may apply to the process of purchasing a Government Owned Home.

	FAIR HOUSING All Agents and Brokers associated with WESTU REALTY, Realtors have signed and agreed to abide by the terms and conditions of the VAMA (Voluntary Affirmation Marketing Agreement), and will abide by its rules and regulations. We abide by the Fair Housing Act of 1968 as amended and will not discriminate against or give preference to anyone on the basis of race, color, religion, sex, handicap, familial status or national origin. This law does not allow us to discuss any of the above items with you. Please do not ask us to violate the law, as we will not.
	AGENCY The seller pays all of the commission on the sale directly to the broker on all HUD and VA Homes. Any Agent and or Broker that is helping you in the purchase of a government home is an agent of the Seller (The Government) unless you have a separate agreement to pay that agent directly. An agent or Broker with our firm can NOT receive a commission from the government and represent you in the transaction, per HUD and VA rules. See the Texas Real Estate Commission (TREC) Agency Disclosure Form included in the contract package.
	DISCLOSURES The seller is a Federal Government Agency and according to Federal Attorneys is not required to comply with the State of Texas Disclosure and furnish prospective purchasers with a Seller's Disclosure. A Seller's Disclosure consists of acknowledging defects, certain deaths on the property, previous defects that have been repaired, previous termite treatment, etc. this is normally required to be filled out by the seller, and acknowledged by the buyer before an offer is accepted. The Government agencies that we work with do not provide this disclosure.
	PREVIOUS OWNER Neither HUD nor VA has any information that they will disclose to the purchaser or Broker/Agent involved in the transaction as to the previous owner or the reason why the home was foreclosed upon. Typically the reason that a home is foreclosed upon is because payments were not made on the home for some reason, thus causing the foreclosure, or the home was transferred to the Government in lieu of foreclosure.
	TERMITES The buyer is encouraged to have a termite inspection prior to closing at the purchaser's cost (usually between $60-$100). If the sale does not close, for any reason, the inspection fee is non-refundable. HUD Homes: On Insured (IN) or Insured with Repair Escrow (IE) properties, if the lender makes it a requirement of the loan to have a termite treatment, HUD will treat the home for you at no cost; otherwise the cost of Termite Treatment on a HUD home will be at the buyer's expense. VA Homes: VA does not inspect or treat homes that are offered for sale as "Cash Only, Investor Specials".
	FLOODING The property that is being marketed by either HUD or VA may be located within the 100 year Flood Plain, as determined by FEMA (Federal Emergency Management Agency). If purchasing a home that is in the flood plain, your Mortgage Company and /or VA will require that you obtain Flood Insurance for the home. You should consult your Insurance agent for a quote, if the home was built prior to the 1970's it may qualify for a reduced insurance rate. To get the best possible price on your flood insurance an elevation certificate may be required, this would be the buyer's expense, and could cost between $50 and $200. If the home has previous flood damage, you may be required to get permission to rebuild the home from the city or county. If they do not grant permission the home has little or no value. The majority of the land in the Houston area is flat and drainage is very poor, if any area receives a large steady rain, the area is likely to experience flooding.

	BIDDING Government homes are sold by Sealed Electronic Bid, therefore, there is NO possible way that we can accurately predict how many bids there will be on any home or how much any home will sell for. We will only be able to give you the current list price of the property, the tax records that show the previous assessed values of the property, and comparative market values of similar homes in the area. If you request it, we will give you, based on our expertise, our " Best Guess" of what the home will sell for, but the final decision is up to the purchaser. If more than one bid is submitted on the same home through Eagle, Realtors, we are not at liberty to discuss the other bid with you, nor can we discuss your bid with them. Please do not ask us to discuss these other bids with you, as we will not be permitted to do so.
	BID RESULTS VA:  On VA properties the bid results are final as of the date of the Bid opening, usually on Thursday afternoon.
	INSPECTIONS / REPAIRS All HUD and VA homes are sold "AS-IS WITH ALL FAULTS" with NO Repairs of any kind except Termite Treatments as outlined above. The only exception to this is when the seller has designated certain items to be replaced by seller (VA- AR10) or with the use of FHA Escrow Repair Funds (HUD). VA:  VA allows the purchaser to have any item in the home inspected prior to closing. The VA leaves the utilities on in the home for this purpose. The VA will NOT make any repairs to the following items: Spas, Pools, Pool equipment, Microwave ovens, trash compactors, ice makers, garage door openers, or other "Non-essential" items in the home. VA will not install GFI outlets or other safety items that were not required as of the date of initial construction.
	HUD: Once the contract has been accepted and executed, HUD will allow you to have utilities turned on for a 48-hour period to have inspections of any item in the home performed. However, they will NOT repair items in the home for you.
	SAFETY ITEMS To insure your safety in your home YOU are encouraged to install or have inspected the following items to assure your safety in your home. Ground Fault Interrupters (GFI) Electrical Outlets near any water source, such as bathrooms, kitchens, laundry, garage, and outdoors. Install new High pressure Relief Valves on all Hot Water Heaters. Have any furnaces checked by a professional for cracked heat exchangers. Double Wall (Safety) Flues on any gas furnaces or gas water heaters. Carbon Monoxide testers on any gas homes. You should also install NEW Smoke Detectors near each bedroom and on each floor.
	INTEREST RATES / LENDERS VA: On VA homes the VA sets the interest rate. At the time that you make an offer, we will provide you with the current interest rate; if you win the bid your interest rate will be at this rate. The VA designates the lenders allowed to process the loans on their homes since the VA actually makes the loan directly to the purchaser. We have a list of these that you can choose from.
	HUD: The Interest rate on HUD homes is negotiable between you and the Lender of your choice. Neither the Government nor the Real Estate Broker can set this rate. It is dependent on many factors and you should discuss this with your Lender and or Loan officer. You may choose any lender that you wish on the HUD properties, but please be aware that most lenders do not participate in the HUD Sales Program. Typically the interest rate on these HUD loans is slightly above the normal market rates since the lender is not allowed to require certain items such as appraisals, surveys and other lender charges normally allowed.
	TITLE POLICY The VA supplies at no cost to the buyer an Owners Title Policy. HUD will pay this expense for you, if requested. This insures you the buyer that there are no outstanding liens on the property and that all-previous tax and assessments have been paid. This policy will also list any easements that are recorded against the property. The seller, through their closing agent, will be glad to furnish you with a copy of the Title Commitment prior to closing if requested by you, if not requested you will be supplied one at closing. YOU ARE ENCOURAGED TO HAVE THIS TITLE COMMITMENT EXAMINED BY AN ATTORNEY OF YOUR CHOICE.
	EARNEST MONEY At the time that we process your bid on the home, we must be in possession of your earnest money check.  All checks need to be certified funds, either a cashiers check or money order. Your earnest money will be deposited with the appropriate government agency upon you winning your bid. If you do not win your bid we will return your check immediately.
	HUD:  HUD requires a $500 earnest Money for bids below $50,000 and $1,000 if bidding above $50,000. The check should be made payable to the "HUD Closing Attorney".
	VA:  VA requires a $1,000 Check payable to the "VA" or the title company designated by the VA to close the transaction.
	EARNEST MONEY REFUNDS If for some reason, the transaction of purchasing the property is not successfully completed, your earnest money may be forfeited; however, it is the decision of the Government agency that is selling the property as to whether or not the earnest money would be refunded. As the broker in the transaction we have no control of the disposition of these funds.
	VA:  If you are not approved on your loan the VA will send you a letter telling you that you may present that letter in person at the VA regional office or the title company for a refund of your $ 1,000.00 earnest money check.
	HUD:  HUD requires that should you not be approved on your loan we must send a copy of the rejection letter to HUD's Management Office and get a release letter that can then be taken to the HUD closing attorney to allow you to receive a refund. HUD has a very specific policy regarding earnest money dispositions, a copy of this is included in the contract package, and we will cover it in more detail with you.
	SURVEYS The government does not supply, nor require that you purchase a survey on the home. The government assumes that the home is in the same location as when they made the original loan on the home. In a normal loan transaction the lender requires a survey to insure that the home is within the property lines and that there are no encroachments that affect the title to the home. In these transactions, if you use the government sponsored financing, the Lender does not require a survey; however, you are encouraged to order a survey at your expense, through either the lender in the case of a HUD home or through the Title Company chosen by VA on VA homes. If you use FHA 203 K financing, or FHA financing on a VA home, you will be required to get a survey, at your expense. If you wish to have a survey we must have sufficient notice as soon as possible in order to insure that it is done prior to the closing.
	DEED RESTRICTIONS, MAINTENANCE FEES & HOMEOWNERS ASSOCIATIONS Any Government home may be located in a subdivision that has a mandatory homeowners association, subject to an annual maintenance fee. This property may be subject to Deed Restrictions that limit the use of the home in certain ways. You should contact the subdivision or Title Company to obtain a copy of the deed restrictions prior to closing. It is strongly recommended that you investigate the financial status of the Homeowners Association, and determine if there are any current or past violations that may affect the property that you are purchasing
	INFORMATION FROM OTHER SOURCES We may have supplied you with information that we have obtained from various sources that we believe to be accurate. Some of these sources are, but not limited to: County Clerk Records, HUD Listing Data, VA Listing Data, BACA Landata (A Tax Data Base Service and a division of Stewart Title Company), Real Data (Tax Data Base), Houston Association of Realtors MLS (Multiple Listing Service Data Base), and The Real Estate Almanac (Subdivision Profile Sheets).    We believe this information to be accurate but we cannot guarantee the accuracy of these sources. If you are relying on information from these sources in making a decision to purchase the home, you should take it upon yourself to verify the accuracy of the information.
	POSSESSION / UTILITIES The purchaser is not allowed to take possession of, or place any possessions in the home until after the closing. The purchaser is NOT allowed to do any repairs to the home prior to closing or to turn on utilities until after closing (except on HUD transactions, in the for the 48 hours allowed in the Home Inspection Policy, please ask for details).
	GHOST/ CRIMES We do not have any knowledge as to if any previous owner or occupant has been involved in any illegal activity in the use of the home or if there has been any previous deaths in the home, unless noted below. We do not have any knowledge of any Ghost or spiritual entity in the home. The next-door neighbors and local Police are the best source of this type of information.
	INSURANCE You should seek the advice of a professional insurance agent for information on the different types of coverage available on your home. The Mortgage Company requires only that the home be insured with a minimum of a Fire & EC policy. These policies do not include theft or liability insurance coverage. The homeowner's policies do have coverage for theft and liability. FLOOD INSURANCE is a separate policy and is NOT included in any of the above. See above for more information on Flooding and Flood Insurance.
	THREATENED or ENDANGERED SPECIES It is recommended that you obtain a report from a natural resource professional to determine if there are any threatened or endangered species, or their habitats located on or near the home that you are purchasing.
	WETLANDS The Buyer, at the Buyer's expense, is encouraged to obtain a report from an environmental specialist to determine if there are Wetlands, as defined by Federal or State Laws or regulation, located on or near the home that you are purchasing.
	WATER and UTILITY DISTRICTS If the property is located in a Water or Utility District you are required to sign an acknowledgment of that fact that shows the tax rate and bonds issued. You should investigate whether the district is financially viable, under capitalized, or under protection of bankruptcy. You should also contact the Texas Department of Health or Local City or county Health Department as to current test results on the district or city's water supply.
	ENVIRONMENTAL and OTHER CONCERNS Homebuyers today need to be concerned about many environmental items that can affect a home. You are encouraged to investigate on your own or hire an expert to determine whether the home you are purchasing has any of the following items of concern: Mold, Mildew, possible allergens, Lead Based Paint (see separate Lead based paint disclosure forms), Lead Contaminated Mini-Blinds, Contaminated water and or plumbing fixtures, Asbestos (Insulation - Siding - Tile, etc.), UFFI (Urea-Formaldehyde foam Insulation), Formaldehyde Gas / Radon Gas, Biological pollutants such as bacteria, viruses and fungi, Volatile compounds found in cleaning and repair work, Tobacco smoke, Mold and Mildew due to water leaks or flooding, Combustion by-products from wood, coal or oil, Poly Buteline Plumbing, Defective galvanized plumbing pipes, Pesticides (including but not limited to Chlordane, DDT etc.), PCB's (Polychlorinated Biphenyl), Aluminum Wiring / defective wiring, Water Well and Septic Systems, and Any other items contained in - on - under - or above the house or property that you are considering purchasing. The Buyer at Buyer's expense is encouraged to obtain an Environmental Assessment Report prepared by an environmental specialist.
	HUD 203 K Loans HUD 203K LOANS are very complicated. If you are a novice home-buyer you may wish to seek advice from the loan officer before purchasing a home with this program. We will be glad to give you a HUD booklet on this program and we will supply you with a copy of the actual HUD manual on this loan type should you wish to purchase a home with this loan.
	AGREEMENT FOR MEDIATION If a disagreement or dispute arises between you the buyer and Eagle Realtors or any broker or agent for them, that cannot be resolved, Eagle Realtors and the Agent or Broker involved will agree to submit the disagreement to mediation before any party resorts to litigation. If the need for mediation arises, the parties to the dispute who shall share the cost of mediation services equally shall choose a mutually acceptable mediator. NOTE: Mediation is a voluntary dispute resolution process in which the parties to the dispute meet with an impartial person, called a mediator, who would help to resolve the dispute informally and confidentially. Mediators facilitate the resolution of disputes but cannot impose binding decisions. The parties to the dispute must agree before any settlement is binding.