Today I want to call your attention to an oft-neglected addendum in the One to Four Family Residential Contract: the MUD notice. 

It’s often overlooked because it sounds like legalese, or stuff we don’t need to pay attention to. However, whether you’re a listing agent or buyer’s agent, you need to pay careful attention to the MUD notice delivery date.

The One to Four Family Residential Contract and the MUD notice itself state that it must be delivered to the buyer prior to the execution of the sale contract. If the listing agent hasn’t uploaded the MUD notice to the MLS and doesn’t email it to the buyer’s agent prior to them signing the sale contract, the buyer has a get-out-of-jail-free card all the way up to the closing. They can literally cancel the contract at any time for any reason and get all of their earnest money back simply because the MUD notice wasn’t delivered prior to the execution of the contract. 

“Whether you’re a listing agent or buyer’s agent, you need to pay careful attention to the MUD notice delivery date.”

If you’re a listing agent, you must have this document uploaded to the MLS as soon as your listing goes active. If you’re a buyer’s agent and don’t receive the MUD notice (either it’s not on the MLS or the listing agent doesn’t send it to you when you express interest on behalf of your buyer), don’t ask for it. 

In fact, you should hope and pray the listing agent doesn’t provide it prior to the home going under contract. This way, your buyer has all the power in the transaction. Even if the MUD notice is delivered after you go under contract, the buyer can sign it and still have the right to cancel the contract. A listing agent should never want to put their seller in that position, but thousands of Houston-area sellers are in that very position right now. 

If you’d like to know more about this topic or have any real estate needs I can assist with, don’t hesitate to reach out to me. Stay tuned for the next video in this series where I’ll discuss another transaction landmine you need to avoid.