Ch. 6 - The Remaining Promulgated Forms

Proration and Rollback Taxes

(NOT APART OF THE ONE TO FOUR FAMILY RESIDENTIAL CONTRACT; RESALE) It is possible that the builder bought a ranch that had an agricultural exemption for real estate taxes and now that he or she is changing the use to residential, it is likely that the new utilization of the property will trigger roll back taxes

Condominium Resale Certificate form Paragraph E

Elaborates on any capital expenditures approved by the association over the next year

Condominium Resale Certificate form Paragraph C

Explains if there is a special assessment due on the unit

Condominium Resale Certificate form Paragraph H

Identifies the amount of unsatisfied judgements against the association

Farm and Ranch contract: Property

When dealing with a legal description like the King Ranch, you would probably have to attach an addendum to completely describe the property.

The RATIFICATION OF FEE

section is at the top of the page on the F&R contract,

You should not complete the Condominium Resale Certificate. You should

send it to the condominium owners' association's governing board. The board should fill it out and send it back.

Condominium Resale Certificate The certificate requires

the appropriate condominium association, upon written request, to issue a resale certificate disclosing information about the financial, physical, and legal condition of the condominium.

The buyer needs to know how

restrictive the condo rules are prior to agreeing to a contract.

Title Policy and Survey - Title Policy, Commitment, Survey

A survey may not be required because there may be no lender involved, and the BUYER is willing to pay cash. Surveys are very expensive for acreage

PROPERTY AND CONDOMINIUM DOCUMENT portion of the condo contract. Paragraph B

Addresses the Condominium Declaration, Bylaws and any Rules of the Association. These documents are necessary for the BUYER to know how the association will operate, and the rules of the condo. Theses should be read over carefully by the BUYER, since the information could affect their willingness to live as this property

New Home Contract (Completed Construction) and the One to Four Family Residential Contract (Resale). (PARTIES)

Both contracts require the buyer and the seller's legal names.

PRORATIONS

The Residential Condominium Contract (Resale) has additional language regarding condominium assessments and who is responsible for paying them. It means that certain charges will be divided between the seller and buyer.

Property Condition

The buyer has received the seller's disclosure notice and accepts the property in its present condition. There will not be a residential service contract

The Unimproved Property Contract (UPC) form is used when

no improvements have been placed on the property.

Client Registration

There is a registration process using a form, that declares the BUYER as your client. This protects you from builder taking your client and selling them a new home construction, and then not paying you, you should "register" your client before showing them a builders' model home.

Title Policy and Survey - Surface Leases

These surface leases could be in the form of hunting leases, grazing leases, ground leases, for equipment storage, or any number of other types of leases

Seller Disclosure

This is on the New Home Contract (Completed Construction) is about the Seller's Disclosure. Normally this is not required

New Home Contract (Completed Construction) and the One to Four Family Residential Contract (Resale). (SALES PRICE)

This is the same on both contracts. It is the cash portion plus the sum of all financing equals the sales price.

Property Condition - Residential Service Contracts

This paragraph is the same on both contracts. It is sometimes referred to as a home warranty

Complete Construction form However, the most common reason this form is used is when

a buyer wishes to purchase a home that is being built for speculation. Builders construct "spec houses" so they can show it off and sell later, hoping to make a profit when it is sold. Spec homes are built to certain specifications.

Addendum for Reservation of Oil, Gas and Other Minerals. Paragraph A

gives the definition of mineral estate. Because real estate can be severed laterally, it is possible for one person to own the surface of the land and someone else to own the minerals under the land.

TREC states that for a broker to be able to sue for a commission due, it must be

in writing and signed by the person responsible for paying a fee.

A condominium, or condo for short,

is the type of housing that allows ownership of "air space", and a specified part of a piece of real estate, like an apartment.

Title Policy and Survey Objections

it may be that a portion of the property is in a flood plain making it difficult for the BUYER to accomplish their goal with the property. If the property is located on a FEMA flood map, the buyer may object and terminate the contract s long as the BUYER does so in the time allowed