The next few days: my goal is to keep you update in this crazy economy and give you options of what might be done. Also, Utah has changed some laws regarding which contract can and cannot be used while buying and selling real properties. I would try to keep you updated about 10 new/changed things you should know about Real Estate Purchase Agreement (and all unchanged items can be found in this blog's all posting)
However, if I disappear one of this coming days: it is due my pregnancy: I have 6 days to go before my due date. And, only my little boy knows when he is planning to make an appearance.
I would try to keep you posted, and notify everyone as soon as this event happens. For now, I would like apologize in advance for possibly disappearing for a while.
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Marina Vialtsina
Showing posts with label Real Estate Purchase Contract. Show all posts
Showing posts with label Real Estate Purchase Contract. Show all posts
Thursday, January 15, 2009
Saturday, September 27, 2008
REPC Section 10.2(b)
The current Utah REPC - Real Estate Purchase Contract has a section (10.2b) that covers the mechanical systems of the home; 10.2b states that these systems will be in working order and fit for their intended purpose.
The changes to the Utah REPC will basically eliminate this section in September 2008.When these changes take place, the buyer will not be protected if any of these items quits working before they close on their home purchase.
Instead you can GET A HOME INSPECTION! Please call me and I will refer you to inspectors who start only at $199.00!
In addition, you can also get following tests:
$125.00 - RADON TESTING W/OUT INSPECTION
$135.00 - METHAMPHETAMINE TEST
$225.00 - MOLD TESTING
The changes to the Utah REPC will basically eliminate this section in September 2008.When these changes take place, the buyer will not be protected if any of these items quits working before they close on their home purchase.
Instead you can GET A HOME INSPECTION! Please call me and I will refer you to inspectors who start only at $199.00!
In addition, you can also get following tests:
$125.00 - RADON TESTING W/OUT INSPECTION
$135.00 - METHAMPHETAMINE TEST
$225.00 - MOLD TESTING
Thursday, May 15, 2008
Seller's Disclosures
We have just a little more to finish reviewing Real Estate Purchase Agreement.
* Some potential buyers might be scared when seller's disclosure (personal information of the seller is not available of the house). Do not worry! If you are a buyer, you have a right to do the inspection anyway in all situations:
1. "As-Is" Addendum
2. Non-Occupant Addendum...
3. 10.2 modified
I will review what is 10.2 tomorrow... As a seller, do you have to repair anything buyer would want you to? And, what is the difference between "As-Is" and 10.2 modified?
* Why wouldn't Seller provide Seller's Disclosure? And, if you are a seller, when you would not want to?
If you have limited information about the property, the best thing to do is to provide the Buyers with a non-occupant addendum, it is better than making information up.
* Is it correct to request Seller's Disclosures the next day?
Even though it happens very often, keep in mind that seller's disclosure is not one document, it is a set of documents which include:
1. actual seller' disclosure
2. a copy of any leases affecting the property not expiring prior to closing
3. written notice of any claims and/or conditions known to seller relating to environmental problems and building or zoning code violations
4. commitment for the policy of title insurance
5. and, as a buyer, you can request more here...
In other words, it may take more time to gather this information. The quickest Title company can provide you policy of title insurance is 3 days.
* Especialy, if you are buying a condo, chances are, you have Home Owner's Association (HOA). And, if you do, HOA has CC&R (community rules and regurlation). My suggestion is never to ask seller's agent to provide these rules to you, get it from the 3rd disinterested party.
Lots of war stories are told about omitted information in CC&R, just so buyer will purchase the property
Wednesday, April 30, 2008
Waiver vs. Cancellation
Consider this, if the Buyer does not complete the appraisal by the deadline in section 24, is it s deal breaker?
Not at all, this situation is a "Waiver" of the Buyers ability to use this contigency. In other words, the ability to return the earnest money back in case the appraisal is below the purchase price.
The contract though is still fully in force. Seller cannot sell the property again just because the deadline was missed.
Now, if the Buyer gets notice of the appraisal by the appraisal deadline, and there is a problem, buyer notifies Seller wihin 3 calendar days of receipt of the appraisal, then this would be "Cancellantion".
In summary, the waiver is something that could benefit me, but I am going to let it go, and not use it.
Cancellation is a clause that is a benefit to me....
Not at all, this situation is a "Waiver" of the Buyers ability to use this contigency. In other words, the ability to return the earnest money back in case the appraisal is below the purchase price.
The contract though is still fully in force. Seller cannot sell the property again just because the deadline was missed.
Now, if the Buyer gets notice of the appraisal by the appraisal deadline, and there is a problem, buyer notifies Seller wihin 3 calendar days of receipt of the appraisal, then this would be "Cancellantion".
In summary, the waiver is something that could benefit me, but I am going to let it go, and not use it.
Cancellation is a clause that is a benefit to me....
Monday, April 21, 2008
I am back: Purchase Price in Real Estate Purchase Contract
I am back from Moab. Our friends had a reception in Wilderness House. Amazing view. Take a look at my picture.
Going back to business, and continue the discussion about one of the most important real estate document-Real Estate Purchase Agreement.
What is Purchase Price? If I represent buyers, I always recommend and do House Comparison before we submit our offer.
Keep also in mind that purchase price may be only one of few money terms in the agreement. Buyers may ask Seller to pay their closing costs. Buyers may ask for some repairs to be completed even before the inspection is done...In other words, if I represent Seller, I recommend patiently review the whole offer before making the decision if the offer is good or not.
For seller, it may be important Method of buyers Payment....you would think why? Seller will be paid cash after closing and recording anyway...the answer is time...b. If Buyer is applying for conventional mortgage for instance, seller is at assumed risk that buyer either would not get qualification, something can change in buyer's financial ability and the process usually takes about 30 days (that is why houses are usually under contract for about 30 days), some other mortgage make take only several days especially if buyer is already pre-qualified, if the buyer has cash, the closing can happen very quickly, and seller will get money probably within 2-3 days...
Tomorrow...I will review which closing costs buyer and seller usually pays...
EM (Earnest Money)+Loan+Balance in Cash=Offering Price
The right or obligation to do appraisal depends on Financing Condition
If Buyer applies for mortgage, the bank will require to do the appraisal. In my practice, I saw only once when bank waived its right (buyer had very large downpayment). Otherwise, buyer must agree to do the appraisal...It is buyer's obligation...
The Buyer may have a right to choose or not to choose to do the appraisal only if the buyer is a cash buyer.
Tuesday, April 15, 2008
Offer vs. Contract and everything about Earnest Money (Deposit)
Even though as a Buyer you are using the Contract Form to spell out all terms of your offer, this offer will not become a Contract until Seller accepts it.
What is Acceptance?
When Seller or Buyer, responding to an offer or counteroffer of the other do the following:
1. signs the offer and counteroffer where noted to indicate acceptance
2. and communicate to the other party or to the party's agent that the offer or counteroffer has been signed as required.
What if while you are waiting for Seller's response you have changed you mind, and do not want to purchase the property anymore?
Not a problem, as long as you correctly communicate that to the Seller...Talk more to me or your Agent about how it should be done.
What is Earnest Money (EM)? And as a Buyer, why do you need to submit it?
Earnest Money (also known as Deposit) is a promise that as a Buyer you will follow the rules and terms of the agreed contract. This money can be returned to you at the Title company during closing or become your downpayment.
Do you need EM to write an offer?
No, in state of Utah, you only need your good intention? However, if the offer becomes a contract, in other words upon Acceptance of the offer by all parties, this money shall be deposited in accordance with state law.
Where and When will it be deposited?
As a Buyer you should give check or cash to your agent who should request his/her broker to deposit it within three banking days after the offer acceptance to the bank. The bank account most of the time will not be interest bearable one.
As a Seller, you are interested prior to final acceptance of this offer or few days after-- request a Buyer to provide proof of the earnest money deposit as being received by Buyer's Agent.
Required amount?
While a lot of other states require earnest money to be at least 2-3% of the purchase price. Utah has no such requirement.It is personal decision between Seller and Buyer. Sometimes, you can see as little as $500 and as high as complete purchase price.
As a Buyer, because the Utah Purchase Contract is very much biased, if you play by the rules, you will not loose your Earnest Money.
As a Buyer, you can choose your deposit to be with Title company. The only thing keep in mind that title companies are regulated by the Department of Commerce, and they may have different release rules which have nothing to do with your agent.
What if EM check is returned as "NSF"? (not sufficient funds)
Very grey area, but Seller can cancel agreement if EM check bounces back.
As a Seller, good idea to specify this right in a contract.
What is Acceptance?
When Seller or Buyer, responding to an offer or counteroffer of the other do the following:
1. signs the offer and counteroffer where noted to indicate acceptance
2. and communicate to the other party or to the party's agent that the offer or counteroffer has been signed as required.
What if while you are waiting for Seller's response you have changed you mind, and do not want to purchase the property anymore?
Not a problem, as long as you correctly communicate that to the Seller...Talk more to me or your Agent about how it should be done.
What is Earnest Money (EM)? And as a Buyer, why do you need to submit it?
Earnest Money (also known as Deposit) is a promise that as a Buyer you will follow the rules and terms of the agreed contract. This money can be returned to you at the Title company during closing or become your downpayment.
Do you need EM to write an offer?
No, in state of Utah, you only need your good intention? However, if the offer becomes a contract, in other words upon Acceptance of the offer by all parties, this money shall be deposited in accordance with state law.
Where and When will it be deposited?
As a Buyer you should give check or cash to your agent who should request his/her broker to deposit it within three banking days after the offer acceptance to the bank. The bank account most of the time will not be interest bearable one.
As a Seller, you are interested prior to final acceptance of this offer or few days after-- request a Buyer to provide proof of the earnest money deposit as being received by Buyer's Agent.
Required amount?
While a lot of other states require earnest money to be at least 2-3% of the purchase price. Utah has no such requirement.It is personal decision between Seller and Buyer. Sometimes, you can see as little as $500 and as high as complete purchase price.
As a Buyer, because the Utah Purchase Contract is very much biased, if you play by the rules, you will not loose your Earnest Money.
As a Buyer, you can choose your deposit to be with Title company. The only thing keep in mind that title companies are regulated by the Department of Commerce, and they may have different release rules which have nothing to do with your agent.
What if EM check is returned as "NSF"? (not sufficient funds)
Very grey area, but Seller can cancel agreement if EM check bounces back.
As a Seller, good idea to specify this right in a contract.
Monday, April 14, 2008
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?
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?
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