Contracts And Regulations 8

A: The Buyer to terminate the contract by written notice

Without the loan commitment by the deadline, the buyer can terminate the contract by giving written notice to the seller that he/she is terminating.

A: If other than at the time of tender of this contract it must be delivered no later than the Alternative Earnest Money Deadline

Earnest money checks are not always delivered with the contract. Most often they are delivered by the Alternative Earnest Money Deadline.

From the Contract to Buy/Sell Real Estate:

Alternative Earnest Money Deadline. The deadline for delivering the Earnest Money, if other than at the time of tender of this Contract, is as set forth as the Alternative Earnest Money Deadline

More info:

A check for the earnest money should either accompany the offer until accepted or be delivered prior to expiration of the Alternative Earnest Money Deadline. Most often, a buyer's agent holding the deposit forwards a copy of the earnest money check with the offer and then specifies a date in the Alternative Earnest Money Deadline when the actual check will be delivered after contract acceptance. If the deposit was tendered with the contract; it must be deposited no later than 3 business days after notice of acceptance of the contract.

From the real estate manual:

"Unless otherwise agreed, earnest money deposits held by the specified broker must be deposited not later than the third business day after notice of acceptance of the contract. The broker should keep a copy of the validated escrow deposit slip and earnest money check in the office transaction file for later inspection."

A: The real property plus fixtures, improvements, and appurtenances

Property as described in the Contract to Buy and Sell includes appurtenances, improvements, and fixtures

From the Contract to Buy and Sell:

Property. The Property is the following legally described real estate in the County of Arapahoe, Colorado:

Legal Description Here known as No. ,999 Maple Street Aurora Co 80999 together with the interests, easements, rights, benefits, improvements and attached fixtures appurtenant thereto, and all interest of Seller in vacated streets and alleys adjacent thereto, except as herein excluded (Property).

A: The buyer may cancel or sue for specific damages

If the Seller defaults the options are with the Buyer,they can cancel, sue for specific performance, or damages, or both.

From Contract to Buy and Sell Real Estate: If Seller is in Default: Buyer may elect to treat this Contract as canceled, in which case all Earnest Money received hereunder shall be returned and Buyer may recover such damages as may be proper, or Buyer may elect to treat this Contract as being in full force and effect and Buyer shall have the right to specific performance or damages, or both.

A: Leased security systems

Items likely to be leased such as security systems, water softeners, and satellite systems are included only if the appropriate box is checked.

A: Buyer’s earnest money becomes nonrefundable

From Contract to Buy and Sell Real Estate:Loan Conditions. If Buyer is to pay all or part of the Purchase Price with a New Loan, this Contract is conditional upon Buyer determining, in Buyer’s sole subjective discretion, whether the New Loan is satisfactory to Buyer, including its availability, payments, interest rate, terms, conditions, and cost of such New Loan. This condition is for the benefit of Buyer. Buyer shall have the Right to Terminate under § 25.1, on or before Loan Conditions Deadline (§ 3), if the New Loan is not satisfactory to Buyer, in Buyer’s sole subjective discretion. IF SELLER DOES NOT TIMELY RECEIVE WRITTEN NOTICE TO TERMINATE, BUYER’S EARNEST MONEY SHALL BE NONREFUNDABLE, except as otherwise provided in this Contract (e.g., Appraisal, Title, Survey).

A: Must be paid at or before closing

The encumbrances must be paid by the Seller before the property can transfer.

From the Contract to Buy/Sell Real Estate:PAYMENT OF ENCUMBRANCES. Any encumbrance required to be paid will be paid at or before Closing from the proceeds of this transaction or from any other source.

A: the prevailing party all reasonable costs and expense

Do not confuse litigation and arbitration with mediation. Mediation is a non-binding process and all parties share in the costs equally. Litigation and arbitration is binding and the prevailing party will be awarded costs and expense from the losing party.

A: The broker must immediately return the money to the buyer

A buyer has until the Loan Objection Deadline to provide written notice s/he cannot get a commitment for a satisfactory loan and wants to terminate the contract. If s/he does provide such notice, the earnest money is refunded to the buyer. If the buyer does not provide such notice, the contract continues, but the buyer's earnest money becomes nonrefundable should s/he not receive a loan.

A: checking an appropriate box, initialing the form, and submitting a counterproposal

The seller may reject the offer and make a counteroffer by checking the box, initialing the form, and submitting a counterproposal form attached to the original offer. The buyer must be notified in writing of an acceptance.

A: Either the buyer's attorney or the seller’s attorney

A contract can be drawn up by either of the parties attorney.

A: Lot 14, Block 10, Filing No. 3, Sunwood Subdivision, County of Denver

A: void and not binding as it was withdrawn before acceptance was communicated to the Buyer

Standard contract law states that a contract must be signed and accepted to be binding. The Buyer has every right to withdraw an offer at no penalty before the signed contract was accepted. A signature alone is not sufficient to constitute valid acceptance: the accepting party must also communicate acceptance to the party who made the last offer or counteroffer. Since acceptance was not communicated, the purchase contract was not binding and either party could withdraw at no penalty.

A: Yes, When the damage exceeds 10% of the agreed upon purchase price

From the Purchase Contract:

Causes of Loss, Insurance. In the event the Property or Inclusions are damaged by fire, other perils or causes of loss prior to Closing in an amount of not more than ten percent of the total Purchase Price (Property Damage), Seller shall be obligated to repair the same before Closing Date. Buyer has the Right to Terminate on or before Closing Date, if the Property Damage is not repaired before Closing Date or if the damage exceeds such sum.

A: Use of Legal and Tax Counsel

Brokers are required to recommend use of legal and tax counsel to their clients. This is accomplished through the following verbiage:

From the Contract to Buy/Sell Real Estate;

RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this Contract, Buyer and Seller acknowledge that the respective broker has advised that this Contract has important legal consequences and has recommended the examination of title and consultation with legal and tax or other counsel before signing this Contract.

A: if the parties agree and indicate this choice on the contract form

According to the contract, parties are permitted to approve faxed signatures and either party may request original signatures at closing or earlier.

A: Checking the "Is" box means the contract is assignable without the seller's prior written consent

Assignability and Inurement. This Contract ___ Is ___ Is Not assignable by Buyer without Seller’s prior written consent.

A: buyer or seller agency

Agency relationships create fiduciary duties that you don't have in a transaction brokerage relationship. To be an advocate for a principal, is one of those duties.

A: Is the default remedy and as such need not be selected

Should the Seller default in the contract - the only remedy for the Buyer is Specific Performance. The Seller did not put up earnest money and thus cannot offer liquidated damages.

A: May replace it or repair it with a similar used refrigerator

It is not necessary to replace it with a new one, but it must have similar features and be of approximately same age and condition.

A: If the buyer cannot get a satisfactory loan by that date, the buyer may terminate the contract with written notice to the seller

A buyer has until the Loan Objection Deadline to provide written notice s/he cannot get a commitment for a satisfactory loan and wants to terminate the contract. If s/he does provide such notice, the earnest money is refunded to the buyer. If the buyer does not provide such notice, the contract continues, but the buyer's earnest money becomes nonrefundable should s/he not receive a loan.

From the Contract to Buy/Sell Real Estate:

Loan Objection. If Buyer is to pay all or part of the Purchase Price with a New Loan, this Contract is conditional upon Buyer determining, in Buyer’s sole subjective discretion, whether the New Loan is satisfactory to Buyer, including its availability, payments, interest rate, terms, conditions, and cost of such New Loan. This condition is for the sole benefit of Buyer. Buyer has the Right to Terminate on or before Loan Objection Deadline, if the New Loan is not satisfactory to Buyer, in Buyer’s sole subjective discretion. IF SELLER IS NOT IN DEFAULT AND DOES NOT TIMELY RECEIVE BUYER’S WRITTEN NOTICE TO TERMINATE, BUYER’S EARNEST MONEY WILL BE NONREFUNDABLE, except as otherwise provided in this Contract (e.g., Appraisal, Title, Survey).

A: The broker acknowledges receipt of the earnest money deposit.

The brokers' signatures acknowledge receipt of the earnest money deposit and confirm their brokerage relationship to the party with whom they are working

A: the terms of the executed sales contract

The purchase and sale contract and any counterproposal or amendments dictate the details of a sale transaction, not oral instructions.

A: Real estate license

The sale of real property requires a real estate license.

A: cashier's check

From the Contract to Buy/Sell Real Estate:

Good Funds. All amounts payable by the parties at Closing, including any loan proceeds, Cash at Closing and closing costs, must be in funds that comply with all applicable Colorado laws, including electronic transfer funds, certified check, savings and loan teller’s check and cashier’s check (Good Funds).

A: Split equally between buyer and seller

MEDIATION. If a dispute arises relating to this Contract, prior to or after Closing, and is not resolved, the parties must first proceed in good faith to submit the matter to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree, in writing, before any settlement is binding. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The mediation, unless otherwise agreed, will terminate in the event the entire dispute is not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at the party’s last known address. This section will not alter any date in this Contract, unless otherwise agreed.

A: 30

MEDIATION. If a dispute arises relating to this Contract, prior to or after Closing, and is not resolved, the parties must first proceed in good faith to submit the matter to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the 650 dispute must agree, in writing, before any settlement is binding. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The mediation, unless otherwise agreed, will terminate in the event the entire dispute is not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at the party’s last known address. This section will not alter any date in this Contract, unless otherwise agreed.

A: If the buyer cannot get a satisfactory written loan commitment by that date, the buyer may terminate the contract upon written notice to the seller.

A buyer has until the Loan Objection Deadline to provide written notice s/he cannot get a commitment for a satisfactory loan and wants to terminate the contract. If s/he does provide such notice, the earnest money is refunded to the buyer. If the buyer does not provide such notice, the contract continues, but the buyer's earnest money becomes nonrefundable should s/he not receive a loan.

From the Contract to Buy/Sell Real Estate:

Loan Objection. If Buyer is to pay all or part of the Purchase Price with a New Loan, this Contract is conditional upon Buyer determining, in Buyer’s sole subjective discretion, whether the New Loan is satisfactory to Buyer, including its availability, payments, interest rate, terms, conditions, and cost of such New Loan. This condition is for the sole benefit of Buyer. Buyer has the Right to Terminate on or before Loan Objection Deadline, if the New Loan is not satisfactory to Buyer, in Buyer’s sole subjective discretion. IF SELLER IS NOT IN DEFAULT AND DOES NOT TIMELY RECEIVE BUYER’S WRITTEN NOTICE TO TERMINATE, BUYER’S EARNEST MONEY WILL BE NONREFUNDABLE, except as otherwise provided in this Contract (e.g., Appraisal, Title, Survey).

A: do nothing, if the listing item is not on the property as of the date of the contract, it is not included nor necessary to cross it out

The Inclusions section lists a number of items which may or may not be a part of the property. Just being in this list does not mean the item is a part of the property. These items are included "if on the Property whether attached or not on the date of this Contract". This means a listed item is only included if it was a part of the property on the date of the purchase agreement.

A: On or before Association Documents Deadline

Homeowners’ Association Documents. The term Association Documents consists of all owners’ associations (Association) declarations, bylaws, operating agreements, rules and regulations, party wall agreements, minutes of most recent annual owners’ meeting and minutes of any directors’ or managers’ meetings during the six-month period immediately precedingthe date of this Contract, if any (Governing Documents), most recent financial documents consisting of (1) annual balance sheet, (2) annual income and expenditures statement, and (3) annual budget (Financial Documents), if any (collectively, Association Documents).

A: 30

A: Seller should sign only the counter offer

To counter: the seller initials the original offer by the box he/she checked indicating it is countered. The seller does not sign the original offer (that would constitute acceptance). The seller's agent then indicates the counter offer on a Counter Proposal form. The sellers signs the Counter Proposal form. The original offer and Counter Proposal are returned to the buyer or buyer's agent.

A: Buyer and Seller

As per the contract to buy and sell real estate:

Earnest Money. The Earnest Money set forth in this section, in the form of _________________________________, is part payment of the Purchase Price and shall be payable to and held by _________________________________________________ (Earnest Money Holder), in its trust account, on behalf of both Seller and Buyer.

A: Checking the "Is Not" box means the contract is not assignable without the seller's prior written consent

Assignability and Inurement. This Contract ___ Is ___ Is Not assignable by Buyer without Seller’s prior written consent.

A: mediation fee

The purchase contract indicates that should there be a legal dispute between buyer and seller, the first legal recourse is mediation and both both parties will split the fee equally regardless of who prevails.

From the Contract to Buy and Sell:

MEDIATION. If a dispute arises relating to this Contract, prior to or after Closing, and is not resolved, the parties shall first proceed in good faith to submit the matter to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree, in writing, before any settlement is binding. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The mediation, unless otherwise agreed, shall terminate in the event the entire dispute is not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at the party’s last known address. This section shall not alter any date in this Contract, unless otherwise agreed

A: Transaction specific items resulting from negotiations or instructions of the parties to the contract

The additional provisions sections is a blank area in which Brokers have broad discretion to enter any necessary language. However, the clauses inserted must be a product of the buyers and sellers negotiation and not language, for example, benefiting the Broker.

Reference

Commission Rule F

A: on the expiration of the resolution deadline.

The Buyer solely determines if the condition of a property is satisfactory or not. Although the Buyers normally will list items they wish the Seller to address; they are not required to do so. The Buyer can simply terminate the contract should they so desire. Should the Buyer submit items to correct to the Seller, the Seller has until a resolution deadline to come to a negotiated agreement regarding the items with the Buyer. If a satisfactory agreement is not reached, the contract will terminate automatically on the deadline unless the Buyer withdraws the objections.

A: the liquidated damages clause is automatically in effect

On the commission approved purchase and sale agreement form; if the specific performance box is not checked the liquidated damages clause is automatically in effect.If Buyer is in Default:___ Specific Performance. Seller may elect to treat this Contract as canceled, in which case all Earnest Money (whether or not paid by Buyer) will be paid to Seller and retained by Seller; and Seller may recover such damages as may be proper; or Seller may elect to treat this Contract as being in full force and effect and Seller has the right to specific performance or damages, or both.Liquidated Damages, Applicable. This applies unless the box above is checked. AllEarnest Money (whether or not paid by Buyer) will be paid to Seller, and retained by Seller. Both parties will thereafter be released from all obligations hereunder. It is agreed that the Earnest Money specified is LIQUIDATED DAMAGES, and not a penalty, which amount the parties agree is fair and reasonable and (except as provided in §§ xx.x), said payment of Earnest Money is SELLER’S ONLY REMEDY for Buyer’s failure to perform the obligations of this Contract. Seller expressly waives the remedies of specific performance and additional damages.

A: Negotiable

Who pays what in the purchase contract is always a matter of negotiation. Although there are traditions that we follow, such as the Seller paying for Title Insurance, this is custom and not law. Neither the Real Estate Commission or State Statutes will tell a Buyer or Seller what they must pay. That is between the buyer and the seller.

From the real estate contract:

Cost of Appraisal. Cost of any appraisal to be obtained after the date of this Contract must be timely paid by ___ Buyer ___ Seller. The cost of the appraisal may include any and all fees paid to the appraiser, appraisal management company, lender's agent or all three.

A: Dates and deadlines will be strictly interpreted

The legal phrase is that timing is important to the contract, and every date and deadline must be taken care of on or before that time.