RESIDENTIAL REAL ESTATE CONTRACTS: SECTION 28-31
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.
28. TERMINOLOGY DESCRIPTIONS
In this section we define what a working day is, which is important for all the deadlines mentioned within the contract. “Working days” and “days” are different things in terms of the contract. Working days are defined as Monday through Friday, which is most commonly used because not many people work on the weekends.
Another thing mentioned here is that if a deadline happens to end on a weekend, you actually have until the next defined working day.
This section also includes all the holidays that are not included in working days.
29. ELECTRONIC SIGNATURE PROVISION
This section allows you to use Dotloop and other online systems to have the contract signed.
30. ENTIRE AGREEMENT PROVISION
This provision explains that you need to have everything in writing within the contract or an addendum to the contract or else it does not matter. Anything that was previously verbally agreed upon or written up before the contract was signed will not be considered part of the contract if it isn’t explicitly included within it.
31. CD/SETTLEMENT STATEMENT
The closing disclosure or settlement statement is where you will see your commission, verify that the home warranty has been purchased, make sure the termite inspection was done properly, ensure that flood insurance is included if necessary, etc. The attorney and the lender will work together on this to make sure everything is accounted for, but it always helps to have another set of eyes on it and allows the Realtor to protect their clients. If you have a deal worked out that the attorney isn’t privy to, this is where you would explain this to the attorney and have them add it to the CD.
Click below to download the documents from this class
[INSERT SAMPLE REAL ESTATE CONTRACT HIGHLIGHTED AND CORRESPONDING NOTES SHEET SIDE BY SIDE]
Need more help with your contract? Call us at 256-427-2760.
