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Your Realtor should be able to discuss these issues in depth so that you may construct a proposal to purchase a 1). The document is dated and location where the offer was drafted is identified. The buyer is identified and this may be a person, a trust or a corporate entity. The address of the subject property is listed as well as the Assessor´s parcel number and the county where the property exists. The amount of the proposed purchase price is described and written as well as the date for the close of escrow. 2). This is where the financial terms are described. It is important to read this paragraph carefully for it is intended to identify the source or sources of funds that will be used in the purchase and establishes the time frames for doing so in the process of securing the financing for the transaction. In most instances financing a purchase will be a combination of cash and traditional lender financing. Sources for funds will have to be identified. Lender based financing will take some time to cover applications, credit verification, property appraisal, review of inspections and possible repairs to the subject property before the loan is approved. 3). The buyer´s occupancy of the property is described. This is particularly relevant when tenants are involved and whether they are vacating or remaining in the property. There may be warrantees on items that have been included in the purchase that the seller will transfer to the buyer. The buyer may also receive keys, door openers, mailbox keys and security system information from the seller. 4). During the course of escrow there will be an exchange of information between the seller and the buyer, this paragraph outlines what information such as inspections and reports are being requested and who shall pay for them. It is advantageous to make a thorough inspection of the property to support your confidence in your investment and hopefully not have any surprises after moving into your new home. If you are seeking financing on the property, some of these inspections will be required by your lender in order to process your loan. Your Realtor will be able to provide you with professional insight to the inspections that should be reviewed for the property that you are considering. The information contained in these reports could be used as a basis for requesting the seller to undertake corrective work or comply with government standards. 5). Some property disclosures are important enough that they are regulated by the state. The disclosures listed can be found in the Real Estate Transfer Disclosure Statement, a Natural and Environmental Hazards report and the Megan´s Law Database Disclosure. 6). This outlines various disclosures and reports that are generated from a homeowner´s association when purchasing a condominium. 7). A discussion of the responsibilities of the buyer and seller when undertaking inspections and disclosures affecting the property. Typically properties are offered to buyers 'as is'. This term directs the buyer to conduct and rely on their own inspections in determining conditions of the property. The buyer is entitled to request that the seller make repairs but the seller is not required to do so. This element of the transaction becomes another point of negotiation; one alternative of resolution may be that the buyer cancels the transaction. 8). Outline of items that are to be excluded from the sale or included with the sale of the property. Sellers should note that anything attached to the home or improved areas of a property are usually considered to go with the property. It is important to identify any items not included. 9). Another review of inspections and disclosures that are available to the buyer. 10). Discussion of repairs, their execution and seller´s participation in the work completion. 11). Buyer indemnity and seller protection; describes buyer´s relationship to the property and seller when conducting investigations. 12). Title and vesting; seller provides a title report for the buyer´s review; issues may need further review and corrective action. There are various ways of taking title when acquiring a property; buyers should consult with their legal or financial advisors. 13). Incorporating the sale of another property as a contingency of a purchase. This is a very weak position to take, there should be some degree of certainty that this sale will close and possibly other incentives offered to a seller in order to strengthen this position. 14). Outline of time periods that seller has for delivering reports, disclosures and information and for the buyer to conduct inspections and investigations. Guidelines for buyers and sellers to follow when requesting repairs, removal of contingencies, notice to perform, cancellation of the agreement and the disbursement of the deposit if necessary. 15). Buyer´s right to make a final inspection of the property to verify condition. 16). Paragraph to include or not liquidated damages as part of the agreement. Should the buyer default, 3% of the purchase price may be released to the seller. The initial deposit is often based on this amount. Both parties need to initial this paragraph to include it in the agreement. 17). Mediation and arbitration of disputes; should an insurmountable disagreement arise between the parties, this paragraph describes alternative courses of action for resolution. Each course of action provides a specific recourse for resolution of the dispute, in some cases one´s legal rights may be waived or foregone. 18). Describes the handling of prorated taxes, assessments and payments between buyer and seller. 19). Notice for compliance of withholding federal and state taxes as applicable. 20). Notice of authorization for broker compliance to report sales information to the MLS.
22). Attorney fees shall be awarded to prevailing party resulting from any legal action taken by buyer or seller. 23). Buyer or seller selection of service providers at their own risk, broker doesn´t guarantee performance. 24). Notification that time is of the essence for performance by parties. The contents of the agreement are contained therein, any changes need to be in writing and acknowledged by buyer and seller. 25). Location to include other supplemental documents to the purchase agreement. 26). Definitions of terms found in the purchase agreement. 27). Introduction of agency disclosure and confirmation. 28). Escrow instructions to escrow holder. 29). Notification to buyer of option to pay broker, separate written agreement required. 30). Restatement of impact of the terms and conditions of the purchase agreement. 31). Notice of expiration timeframe and signature places for buyer. 32). Compensation of broker by seller. 33). Notification of acceptance of offer and/or conditional on terms modified by newly created counter offer. Real estate brokers identified and broker acknowledgement of cooperation of compensation. Escrow holder acknowledgment. Location for seller to reject offer outright if that course of action is chosen. Buyer´s Inspection Advisory (A standard addendum that is included with the Residential Purchase Agreement.) This document follows the purchase agreement and is attached as a disclosure for all parties involved in the transaction. There is a notice of the importance to investigate conditions affecting the land and improvements. An outline of the rights and duties of the buyer and seller are described as well as broker obligations. A list of the types of investigations is offered but may not represent a complete summary of information that would be pertinent to the purchase situation. |