The Ann Arbor Area Board of Realtors staff has contacted the Michigan Association of REALTORS® (MAR) Legal Hotline to help clarify questions from members:
What constitutes a binding contract for home buyers to receive the Tax Credit? Does it need Bank Approval first?
The answer from MAR Legal Hotline is that the contract must be accepted by both the buyer and seller. If there is a third party involved (i.e., short sale), the bank DOES NOT need to approve the sale prior to the April 30, 2010 deadline.