Date Plus Three Days Warning Notice!

I promised yesterday that I will review in more details Date Plus Three Days Warning Notice!

There are several sections in Real Estate Purchase Contract (REPC) regarding this rule, this is the first one.

Let's say for easy explaination, your loan denial deadline was set as Monday, January the 1st. It means that the buyer, not seller, needs to get the Loan Denial Notice by this deadline to be of any benefit to the buyer.

Any notices received after this date would still allow buyer to cancel the agreement, but the earnest money would not be protected. In simple words, it is all about earnest money, as a seller, you cannot sue or otherwise make the buyer purchase your house here.

There is particurlar section in REPC which will govern the exact day and time of when the counting would sart, and it also states that uness another time has been agreed upon, the time that would apply would be 5:00 pm Mountain Time.

So, let's say you are a buyer, and you receive your Loan Denial Notice on the 1st, you would have 3 additional calendar days to communicate this to the Seller, and still receive the earnest money back

As a seller, you would ask why? One of the good reasons, I can think of is it allows buyer possibly find another mortgage company to make the purchase happen.

So, let's say you are a seller, and you receive this notice no later than January 4th, keep in mind Buyer still has a right to keep a deposit. And, you now have a right (Buyer has the same right) to cancel this contract by providing written notice to the other party within next three calendar days.

So, in January 7, you wrote that notice, and Buyer kept the Easnest Money, and you, as a seller, hopefully received a better offer from people who qualify for the mortgage. :)

What comes with the house?

Surprisingly, there are a lot of confusion what should or should not come with a house...

The general rule is whatever is attached to the property, it has to stay...In reality it is more complex than that...

Not to have any confusion or argurment later on, I suggest Buyer and Seller read carefully "Included" and "Excluded" areas of the contract...And,

Traditionally speaking unless specified otherwise, following items are included when you sell the house:

1. plumbing, heating, air conditioning fixtures and equipment
2. ceiling fans
3. water heater
4. built-in appliances
5. light fixtures and bulbs
6. bathroom fixtures
7. curtains
8. draperies and rods
9. window and door screens
10. storm doors and windows
11. window blinds
12. awnings
13. installed television antenna
14. satellite diches and system
15. permanetly affixed carpets
16. automatica garage door openers and accompanying trasmitter(s)
17. fencing
18. tree and shrubs

Now, you see the illusion some people are experiencing believing that they can remove for instance ceiling fans or blinds, it is wrong to do so, unless it is specified as "Excluded Item".

Everything can be requested by the Buyer to Stay, and if Seller agrees to do so, the list of new included items should be added to the contract and under Separate Bill of Sale with warranties as to title.

What if advertising (including MLS) items to stay are different from Purchase Agreement?

The REPC (Real Estate Purchase Contract) will most likely be found to be controlling document.

The REPC _Real Estate Purchase Contract

Most problems and arguments arise because how the purchase contract is written and interpretted. Lately, I have been studying a lot to see what possibly laws suits can and did arise in the past, how local state laws interprete the REPC, and feel that I am ready to share my experience with you...If you ever decide purchase or sell the property, please consider this notes.

Real Estate Purchase Contract (REPC) is the stand form purcahse contract that is approved by the Utah Real Estate Commission and the office of the Utah Attorney General. Even though all Realtors are required to use it, individual Purchaser or Sellers can use whatever they want.

The next few days I will explain what every paragraph of REPC mean...

Here are the topics I will cover:

Offer vs. Contract.

1.Earnest Money (EM)
a. the required amount
b. when earnest moeny is deposited and where?
c. what if the EM deposited wth Title company?
d. What if EM check is returned as "NSF"

2. Included Items
a. Items which expencted to stay with a house.
b. Exluded Items
c. What if advertising (including MLS) items to stay are different from Purchase Agreement

3. Water Rights (Rights vs. Shares)

4. Purchase Price
a. Agreed Sellig Price and Method of Payment
b. What you have to pay attention to as a Buyer or Seller?
c. EM+Loan+Balance in Case=Offering Price

5. The right or obligation to do appraisal depends on Financing Condition

6. Mortgage Financing Contingency
a. What Seller or Buyer have to pay attention to?
b. Buyer's Duty
c. Seller's Rights
d. Procedure if Loan Application is denied

7. Rule about date plus three days

8. Appraisal Condition

9. Settlement vs. Closing and Possession

10. Waiver vs. Cancellation

11. When te house is closed? And, when Buyers becomes a new Owner?
a. procedes of new loan
b. record of closing documents
c. "Collected and Clear funds"
d. four calendar days

12. Confirmation of Agency
a. Written Agreement
b. Limited Agency
c. Who Realtor can and cannot represent
d. Realtor's duty to his/her clients

13. The benefit and requiremen of Title Insuranve

14. What is Seller's Disclosures:
a. Non-Occupant
b. what is "As-Is"
c. What becomes with Tenants if the house is being sold?

15. Realtors are not Inspectors
a. What do you need to become an inspector?
b. Buyers' right to cancel based on inspection or object
c. What is the difference between "As-Is" and sale that modifies section 10.2?
d. How to object properly
e. How long does the Seller have to repond? What does the seller must or might do?

16. What must Seller disclose?
a. Resource vs. Answer
b. Sex Offerder
c. Horror Stories and Haunted House
d. Stigmatized Property
e. Failure to disclose not a bsis for liability
f. Can you ever disclose too much?

17. Additional Term of the Agreement

18. Standards of Practice

19. What is addendum?

20. Home Warranty

21. Walk-through Inspection

22. Changes during Transaction

23. Authority of Singners...Whose signature should be on REPC?

24. Other Possible situations to cancel the contract

25. Dispute, Default, is there 3 day right to cancel the agreement?

26. What is Abogation?

27. Time is of the essence

28. When is your offer is accepted?

29. Contract Deadlines?

30. Offer and time for Acceptance?