What is 10.2?

What is 10.2? 10.2 is a section of Real Estate Purchase Agreement, which specifically talks about 5 items sellers warrant to buyer:

1. broom clean and free of debris property
2. heating, cooling, electrical, plumbing and sprinkler systems and fixtures, appliances and fireplaces will be in working condition
3. roof and foundation shall be free of leaks known to seller
4. private well or septic tank servicing the property should have correct permits
5. property, improvements, including landscaping, will be in the same general condition as they were on the date of acceptance

Sometimes, Sellers concern than after the inspection, buyer will use "written objection" period of time as a renegotiation period. While it might be true, and I almost strong suggest to work reasonable things out, seller must be aware what items he/she must to repair, and what items are not up for negotiation.

On the date seller deliveres physical possession to the buyer, those 5 items should be completed. And, they are not up for discussion.

Let's review short scenario, seller and buyer under contract, and after the inspection, buyer requires seller to change the roof because it is an old one. Does he have to do that? As long as this roof does not leak, no, he does need to do that.

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?