RESIDENTIAL REAL ESTATE CONTRACTS: SECTION 13-15
This is a brief summary of real estate contracts. This summary does not cover all aspects of the contract. This video has been made specifically for Real Estate Agents to use as an unofficial educational resource. Nothing in this video is intended to convey legal advice or best practices in any field. This video is only intended to give general advice on broad topics relating to contracts and the closing process at large. For legal advice please contact an attorney and for lending advice please contact a lender.
13. AGENCY DISCLOSURE
This is where you identify that you represent someone and that you need to be paid on this deal. You should identify your brokerage and who you represent here, and give the appropriate paperwork to your clients to represent that agency. Agency is a legal role that you are playing — there is a principle that you represent, and you are an agent of that principle. There is paperwork that usually goes along with that, especially if you are a dual agent representing both sides.
14. CONDITION OF THE PROPERTY
The seller and purchaser responsibilities are again separated out here.
The seller must deliver all built-in things that were there when the house was seen by the buyer and the contract was signed, and the house has to be in normal operating condition from the time the contract is signed to the time you close. We are a “Buyer beware” state, though, so the purchaser is in charge of having all inspections performed. It is very important to have as many inspections done as possible because if anything happens to the property and the buyer didn’t have an inspection done, it’s very likely that there’s no recourse.
The seller is required to have utilities on during any inspections (even if the house has been vacant and utilities were turned off), and this is so that the purchaser can perform proper inspections.
15. LEAD-BASED PAINT
This section requires an assessment/inspection for lead paint, but allows the purchaser to remove the contingency for this inspection. Our area doesn’t have very many properties built before 1978, and if you do encounter one then there is a pamphlet about the risk of lead paint that you are required to provide to your client.
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[INSERT SAMPLE REAL ESTATE CONTRACT HIGHLIGHTED AND CORRESPONDING NOTES SHEET SIDE BY SIDE]
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