Our attorneys have been getting several variations of this question recently…

Q: My buyer clients made an offer on a short sale on April 29. The sellers ratified the contract on April 30th. The bank hasn’t even had an opportunity to review the offer yet. Will my clients be able to claim the homebuyer tax credit?

A: Yes, as long as your clients meet all the other criteria, says VAR’s special counsel Lem Marshall and many other other attorneys. The date of the ratified contract between the buyer and seller is what counts. Bank approval is a contingency, just like an appraisal or financing contingency.

For more information, visit the ACAR Watercooler blog.