RESIDENTIAL REAL ESTATE CONTRACTS: SECTION 32
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.
32. ADDITIONAL PROVISIONS
This is a great spot to add in any exceptions to anything we’ve already talked about or to include things that aren’t naturally part of the contract. Some examples of things included in this section are:
- Seller is to provide a home warranty to buyer in the amount of $X.
- Seller agrees to leave washer and dryer.
- Addendums are attached.
If this is a resale and the home was built in the ’90s or earlier, it’s a good idea to get a home warranty for your buyer. They generally range from $500-$750, though there are some Cadillac plans that go higher. If the seller refuses to get one, it may be a good idea for the buyer to just purchase it themselves to ensure they have one. Do not wait until a week or a day before closing to order your home warranty. Call the company you would like the warranty from and tell them you need one for X price on the property in question and that it will be charged at closing. The warranty company will then send the invoice directly to the attorney so it can be included in closing. If the home doesn’t end up closing then we can just cancel the home warranty without any financial penalty.
It is a good idea to note any attached addendums here as well. This can be an inspection addendum, a counter offer, or any other agreement that will affect closing. Mentioning these addendums here will show our staff that they need to look for these documents if they weren’t attached with the original contract.
Sometimes there are issues with the home that are very blatant and that you don’t need an inspection to verify. These are often also mentioned in this section of the contract as something that is required to be fixed before closing.
Click below to download the documents from this class
[INSERT SAMPLE REAL ESTATE CONTRACT HIGHLIGHTED AND CORRESPONDING NOTES SHEET SIDE BY SIDE]
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