©copyright, 2010 florida realtors® 1 the effective sales and purchase contract by: steven j....
TRANSCRIPT
©Copyright, 2010 Florida Realtors®1
TheEffectiveSales and Purchase ContractBy: Steven J. David, CRB,CRS,GRI
Presented by:
Florida Realtors®
©Copyright, 2010 Florida Realtors® 2
Course Objectives:By drafting an effective purchase and sales contract
The student is empowered to:
• Explain the agreement
• Identify timing and use of disclosures.
• Reduce litigation
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Course Topics:
Basics of a contract
Required disclosures
Review of the contract form
Workshop activity
Changes, counter-offers, conditions
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The Contract
Represents desires of all parties
Instructs the closing agent
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Purchaser’s Name
Purchaser’s Name
Legal Description
Legal Description
Use of Property
Use of Property
Personal Property
Personal Property
Purchaser Price
Purchaser Price
Terms ofPurchase
Terms ofPurchase
The Basics
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The Basics
AcceptanceDate
AcceptanceDate
ClosingDate
ClosingDate
RepairLimitations
RepairLimitations
SpecialClauses
SpecialClauses
SignaturesSignatures
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The Basics
EVERYTHINGshould be in writing
Most problems are due to miscommunication
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Purchaser’s nameLegal descriptionPersonal propertyUse of propertyPurchase priceTerms of purchase
Acceptance dateClosing dateRepair limitationsSpecial clausesSignatures
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Required Disclosures
Which disclosures must be given?
When are they given?
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Attorney’s fee Survey
Escrow balance Title Insurance
Hazard insurance Mtg Transfer Fee
Abstract recertification
Appraisal
Disclosures – Cost/Fees
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Disclosures - Costs/Fees
Credit report Prepaid escrows
Documentary Stamps
Origination fees
Lender’s attorney fees
Other
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Lead-based Paint
FHA-Mandated Home Inspection
Energy efficiency
Agency
Controlled business arrangements
Other Disclosures
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Other Disclosures Mold Homeowner’s Association Property Tax Increase Warning 2003 Law Changes
Material Facts DisclosureHIVDeath
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Financing Agency Homeowner’s assoc Property tax Hazardous materials Inspections Equal housing Leases
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Filling in the Blanks Legal Description Complete address Personal property - included Personal property - excluded Leased equipment Seller representations
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Filling in the blanks Deposit Additional deposit Amount of new note Existing mortgage Purchase money Other consideration Balance of funds Total purchase price
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Filling in the Blanks
FHA or VA
CondominiumsFHA or VA
Condominiums
Special Clauses
Special Clauses
Acceptance
dateAcceptance
date
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Filling in the Blanks Old mortgages New mortgages Assignment Survey Inspections Environmental
condition
Radon gas Insurance Leases Seller’s affidavit Place of closing Documents for
closing
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Filling in the Blanks
ExpensesPro-rations Other pro-rationsSpecial
AssessmentsRisk of lossMaintenance
Escrow proceeds Escrow deposits Default Non-recordable Survival of
covenants
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Final Agreement Special Clauses Signature Section
Sign only if you have actually received the deposit!
NOTE: The riders for VA, FHA etc. will be discussed thoroughly at this time.
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Section 4: Workshop
• Preparation of an effective purchase and sales contractWorkshop
Activity
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Changes?Counter-offers?Conditions?
A counter-offer is a change in the offer from one party to the other
May use a clean contract Initial/sign all changes
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Submit offers/counter offers ASAP Parties can cancel before acceptance Get EVERYTHING in writing
Don’t Forget!