What are the key provisions of the purchase contract?

There are many important key provisions in the purchase contract. However, some of the most important are obviously the sales price. The buyer and the seller has to agree on a sales price, otherwise you don't really have a contract. Then the closing date, that's important because you have to close by that date. If you don't, there are going to be legal consequences either to the buyer or the seller. After that, you have contingencies. Contingencies are anything that has to happen, and if they don't, either the buyer or the seller can cancel the contract. Some of the contingencies could be a mortgage contingency, an appraisal contingency and an inspection contingency.

Eugene Vigoa, Esq.

CLOSING DISCLOSURE

The seller must be provided with a seller side closing disclosure or settlement statement prior to closing.  When you receive it, make sure that the information is accurate.  For example, double check the commission, if any, and other charges that the seller is paying.  In Broward and Miami-Dade counties, it is customary for the seller to pay for their title search, municipal lien search, estoppel letter, and a settlement fee for preparation of the deed and other seller closing documents, unless the contract says the buyer will pay for it.  

Also, the seller will pay for prorated property taxes and special assessments if any.  Finally, the seller also pays for a documentary tax, or doc stamp.  There may be additional fees the seller will pay depending on the situation.  If you are not sure about a particular fee or charge, don't hesitate to ask the settlement agent to explain it to you.

GREAT TRAINING SEMINAR AT RAD PROPERTIES

Rad Properties

TRAINING SEMINAR

REALTOR TRAINING SEMINAR

Eugene Vigoa, Esq.

TITLE INSURANCE AND THE SELLER

If you are selling your home, the buyer will most likely want to purchase title insurance to protect them against possible title defects.   As a seller, you probably purchased title insurance yourself when you bought the property.  The buyer's settlement agent may contact you regarding issues that appear on title that need to be corrected prior to closing.  

The most common being an open mortgage recorded against the property.  However, there are many issues that can arise on title that is the responsibility of the seller to correct prior to closing.  The reason is that the sales contract requires the seller to provide the buyer with marketable title.  That is, clear title so that the title insurance company can issue a title policy to the buyer.

An experienced settlement agent will work with the seller to clear issues that come up during the title search; however, there may be instances where the seller may have to get an attorney to help them clear title issues.

video1.mp4

Eugene Vigoa, Esq.

CLOSING DATE

Sellers usually want to close as soon as possible, and buyers want as much time as they need.  A good compromise is to close within 30-45 days depending if the buyer will finance the purchase or not.  If the sale is as cash transaction, then 30 days should be sufficient time to close.  If the buyer needs more time, the seller can always agree to an extension.  If the buyer is going to finance the purchase, then 45 days is a reasonable compromise; however some lenders may take longer to finalize the loan.

It is difficult to guess at the time the contract is signed how long will it take to close the transaction, for that reason, both parties should remain flexible.

Eugene Vigoa, Esq.

CLOSING DATE

Sellers usually want to close as soon as possible, and buyers want as much time as they need.  A good compromise is to close within 30-45 days depending if the buyer will finance the purchase or not.  If the sale is as cash transaction, then 30 days should be sufficient time to close.  If the buyer needs more time, the seller can always agree to an extension.  If the buyer is going to finance the purchase, then 45 days is a reasonable compromise; however some lenders may take longer to finalize the loan.

It is difficult to guess at the time the contract is signed how long will it take to close the transaction, for that reason, both parties should remain flexible.