Why?- If Buyer provides written objections to Seller, Buyer and Seller shall have seven calendar days after Seller's receipt of Buyer's Objections (the "Response Period") in which to agree in writting upon the manner of resolving Buyer's objections.
Except as provided in Section 10.2, Seller may, but shall not be required to, resole Buyer's objections. If Buyer and Seller have not agreed in writting upon the manner of resolving Buyer's objections, Buyer may cancel this Contract by proving written notice to Seller no later than three calendar days after expiration of the Response Period.
A mejore problem arises when the agents alloq a contract to be written where these dates actually extend beyound the settlement deadline. That is why it is better to have Inspection Dealine at least 20 days before Settlement.
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Marina Vialtsina
Showing posts with label deadline. Show all posts
Showing posts with label deadline. Show all posts
Monday, May 26, 2008
Saturday, April 26, 2008
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. :)
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. :)
Friday, April 25, 2008
Loan Application
According to Real Estate Purchase Contract, one of the buyer's duties is to apply for a loan before loan application deadline:
What does it mean to apply for loan: following events should occur before the application deadline:
1. the application should be completed, signed and delivered to the leander
2. all loan application fees, if they apply, should be paid
3. Buyer should diligently work to obtain the Loan and provide any additional information which can be required.
Procedure if Loan Application is denied:
There are several scenarios, all of them depend of the calendar, in other words, did it happen before or after the loan denial deadline? /em>
Buyer receives written notice from the Lender that the Lender does not approve the loan ("A Notice of Loan Denial"), first of all, the Buyer should no later than 3 calendar days thereafter, provide a copy to the Seller.
Buyer or Seller may, within 3 calendar days after Seller's receipt of such notice, cancel this contract by providing written notice to the other party. It is the only clear reason for the Seller to cancel the agreement. There are other possible situations, but it is the only obvious one.
In the event of cancellation, what happens with deposit (Earnest Money)?
1. if the notice of loan denial was received by the Buyer no later than the loan denial deadlines referenced in deadline section, the deposit shall be returned to the Buyer. Please pay attention, if you are a seller, if the notice was received the the BUYER..., not seller...
2. If the notice was received after that date, the deposit shall be released to the seller, and seller agrees to accept it as seller's exlusive remedy, deposit as liquidated damages. Please pay attention, if you are a seller, if buyer last minutes decides to cancel the agreement, no matter what true reason is, if the buyer indicates that loan is denied (he may know people in loan indusry to ask him to write the loan denial notice), you will have a right only to keep a deposit because it is your exlusive remedy, in other words, you would not be able to sue.
3. The failure to cancel shall have no effect on thte Financing Condition set in previous section.
Tomorrow, I will review in more details what is DATE PLUS THREE DAYS WARNING NOTICE?
What does it mean to apply for loan: following events should occur before the application deadline:
1. the application should be completed, signed and delivered to the leander
2. all loan application fees, if they apply, should be paid
3. Buyer should diligently work to obtain the Loan and provide any additional information which can be required.
Procedure if Loan Application is denied:
There are several scenarios, all of them depend of the calendar, in other words, did it happen before or after the loan denial deadline? /em>
Buyer receives written notice from the Lender that the Lender does not approve the loan ("A Notice of Loan Denial"), first of all, the Buyer should no later than 3 calendar days thereafter, provide a copy to the Seller.
Buyer or Seller may, within 3 calendar days after Seller's receipt of such notice, cancel this contract by providing written notice to the other party. It is the only clear reason for the Seller to cancel the agreement. There are other possible situations, but it is the only obvious one.
In the event of cancellation, what happens with deposit (Earnest Money)?
1. if the notice of loan denial was received by the Buyer no later than the loan denial deadlines referenced in deadline section, the deposit shall be returned to the Buyer. Please pay attention, if you are a seller, if the notice was received the the BUYER..., not seller...
2. If the notice was received after that date, the deposit shall be released to the seller, and seller agrees to accept it as seller's exlusive remedy, deposit as liquidated damages. Please pay attention, if you are a seller, if buyer last minutes decides to cancel the agreement, no matter what true reason is, if the buyer indicates that loan is denied (he may know people in loan indusry to ask him to write the loan denial notice), you will have a right only to keep a deposit because it is your exlusive remedy, in other words, you would not be able to sue.
3. The failure to cancel shall have no effect on thte Financing Condition set in previous section.
Tomorrow, I will review in more details what is DATE PLUS THREE DAYS WARNING NOTICE?
Tuesday, September 18, 2007
As property values go up, appeals surge-Desert News
The hullabaloo over assessed property values means more paperwork for county assessors in Davis, Salt Lake and Utah counties.
And it also means the Utah Legislature's Revenue and Taxation Interim Committee has scheduled a public hearing Wednesday at 3:30 p.m. to discuss the impact property taxes had on Utah residents this year.
As of 5 p.m. Monday, the deadline for property value appeals, landowners in Utah's three largest counties had filed 11,426 appeals — 4,047 more than they did in 2006.
That number is small compared to the total number of properties in each county, but the number of appeals is expected to rise this week as mailed appeals trickle in. But they must have been postmarked by Monday at 5 p.m.
The number of requests for tax appeal hearings more than doubled in Utah County this year.
Requests started pouring in over the phone at 8 a.m. Monday, until a clerk in the auditor's office shut down the system at 5 p.m. By that time, the number of hearing requests had skyrocketed to 3,026. Last year's count was 1,062.
In Davis County, appeal requests came in spurts, said Jonathan Lee, chief deputy in the clerk/auditor's office.
But from 4 to 5 p.m. there was a steady stream of property owners — most from Bountiful — who dropped off their forms with comparable home sale prices attached.
Larry Wilcox, who lives in Bountiful, was the last person to file in Farmington in person on Monday.
He said his property value increased 47 percent over last year's assessment, and he doesn't believe the market value placed on his 17-year-old home is accurate.
Wilcox, who still works and has paid off his home, said he doesn't believe the tax burden on himself is as bad as for people who are retired and live on fixed incomes.
"Something should be done," he said. "(The tax rate) ought to be adjusted down the road. Cap it at some point."
That way, he said, once someone's income is fixed, his expenses are fixed, as well.
It was easy to find similar stories and hear pleas to government officials to improve the methodology for collecting property taxes.
On average, Davis County's residential property values increased 19.5 percent, but Bountiful saw the highest increase in values in the county: 30.5 percent.
Even Davis County Assessor Jim Ivie, a Bountiful resident, appealed his value.
Appeals are a way to ensure the county has the most accurate information, Ivie said.
Salt Lake County's property values are the highest that Salt Lake County Assessor Lee Gardner has ever seen, with an average increase of 22.3 percent over past year.
But the rising property values didn't follow that same trend when it comes to appeals, said Liz Fehrmann, Salt Lake County assistant tax administrator. Approximately 6,500 property owners appealed their appraisal value this year. The county received more than 7,600 appeals in 2001, Fehrmann said.
Fehrmann believes appeals didn't reach a new high because "values are underassessed in a great deal of the county."
Appraisals are based on market values in January. Things have changed in eight months, and the market "has cooled somewhat," Salt Lake County Assessor Lee Gardner said. That's why a lot of people appeal, he said. Property owners won't see the cooling off until next year's tax notices are mailed, because those will rely on market data in January 2008.
"It's not surprising," Gardner said of the appeals. "That's natural when you see a significant increase in property values. People will look at the value and go, 'Whoa, I need to appeal,' without really seeing if it's indicative of what the market is."
Each hearing can deal with one parcel or 300, so it's hard to tell exactly how many properties will be appealed. But Utah County Assessor Kris Poulson says this year's numbers could have been worse.
"If you think about it, (the requests for appeals) are about 2 percent of the taxable parcels we have," Poulson said. "That's not extremely bad."
Poulson said there is about a 5 percent margin of error on this year's valuations, and some valuations have incorrect information. For example, the county has had multiple complaints from residents who have vaulted ceilings in their homes that were counted as a second story.
Although the deadline for scheduling an appeal has passed, residents can still contact the assessor's office if the information on their notice is incorrect, Poulson said.
"If our data is wrong, that could be why our value is wrong," Poulson said. "There are areas that we haven't had a chance to review yet, but I would say, out of 20 homes that we look at, probably 18 or 19 will be (correct)."
And it also means the Utah Legislature's Revenue and Taxation Interim Committee has scheduled a public hearing Wednesday at 3:30 p.m. to discuss the impact property taxes had on Utah residents this year.
As of 5 p.m. Monday, the deadline for property value appeals, landowners in Utah's three largest counties had filed 11,426 appeals — 4,047 more than they did in 2006.
That number is small compared to the total number of properties in each county, but the number of appeals is expected to rise this week as mailed appeals trickle in. But they must have been postmarked by Monday at 5 p.m.
The number of requests for tax appeal hearings more than doubled in Utah County this year.
Requests started pouring in over the phone at 8 a.m. Monday, until a clerk in the auditor's office shut down the system at 5 p.m. By that time, the number of hearing requests had skyrocketed to 3,026. Last year's count was 1,062.
In Davis County, appeal requests came in spurts, said Jonathan Lee, chief deputy in the clerk/auditor's office.
But from 4 to 5 p.m. there was a steady stream of property owners — most from Bountiful — who dropped off their forms with comparable home sale prices attached.
Larry Wilcox, who lives in Bountiful, was the last person to file in Farmington in person on Monday.
He said his property value increased 47 percent over last year's assessment, and he doesn't believe the market value placed on his 17-year-old home is accurate.
Wilcox, who still works and has paid off his home, said he doesn't believe the tax burden on himself is as bad as for people who are retired and live on fixed incomes.
"Something should be done," he said. "(The tax rate) ought to be adjusted down the road. Cap it at some point."
That way, he said, once someone's income is fixed, his expenses are fixed, as well.
It was easy to find similar stories and hear pleas to government officials to improve the methodology for collecting property taxes.
On average, Davis County's residential property values increased 19.5 percent, but Bountiful saw the highest increase in values in the county: 30.5 percent.
Even Davis County Assessor Jim Ivie, a Bountiful resident, appealed his value.
Appeals are a way to ensure the county has the most accurate information, Ivie said.
Salt Lake County's property values are the highest that Salt Lake County Assessor Lee Gardner has ever seen, with an average increase of 22.3 percent over past year.
But the rising property values didn't follow that same trend when it comes to appeals, said Liz Fehrmann, Salt Lake County assistant tax administrator. Approximately 6,500 property owners appealed their appraisal value this year. The county received more than 7,600 appeals in 2001, Fehrmann said.
Fehrmann believes appeals didn't reach a new high because "values are underassessed in a great deal of the county."
Appraisals are based on market values in January. Things have changed in eight months, and the market "has cooled somewhat," Salt Lake County Assessor Lee Gardner said. That's why a lot of people appeal, he said. Property owners won't see the cooling off until next year's tax notices are mailed, because those will rely on market data in January 2008.
"It's not surprising," Gardner said of the appeals. "That's natural when you see a significant increase in property values. People will look at the value and go, 'Whoa, I need to appeal,' without really seeing if it's indicative of what the market is."
Each hearing can deal with one parcel or 300, so it's hard to tell exactly how many properties will be appealed. But Utah County Assessor Kris Poulson says this year's numbers could have been worse.
"If you think about it, (the requests for appeals) are about 2 percent of the taxable parcels we have," Poulson said. "That's not extremely bad."
Poulson said there is about a 5 percent margin of error on this year's valuations, and some valuations have incorrect information. For example, the county has had multiple complaints from residents who have vaulted ceilings in their homes that were counted as a second story.
Although the deadline for scheduling an appeal has passed, residents can still contact the assessor's office if the information on their notice is incorrect, Poulson said.
"If our data is wrong, that could be why our value is wrong," Poulson said. "There are areas that we haven't had a chance to review yet, but I would say, out of 20 homes that we look at, probably 18 or 19 will be (correct)."
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