Promulgated Forms
Mutual Consent/Acceptance
"Meeting of the Minds"
Communication is also known as...
Notification
No Survey in Condo Contract
THERE IS NO PROVISION IN PARAGRAPH 6 FOR A SURVEY ON A CONDOMINIUM CONTRACT
Farm and Ranch Contract:
The legal description is usually a Metes and Bounds description because it is acreage
Consult an Attorney
always before signing
The broker is responsible for...
for ensuring that the effective date is filled in.
The offeree...
has the power of acceptance and can either do nothing, accept, reject or counteroffer
Offeree
the party to whom the offer is made
Objections paragraph...
IS WHERE THE AGENT WOULD LIST ACTIVITIES THE BUYER INTENDS TO USE THE PROPERTY FOR, OTHER THAN RESIDENTIAL USE. IF THE SURVEY, COMMITMENT OR EXCEPTION DOCUMENTS SHOW DEFECTS OR ENCUMBRANCES TO THOSE USES OR ACTIVITIES, THE BUYER CAN NOTIFY THE SELLER WITHIN _____ DAYS OF THEIR OBJECTION. IF THE SELLER CANNOT CURE THE OBJECTION WITHIN 15 DAYS, THE BUYER CAN TERMINATE OR THEY CAN WAIVE THEIR OBJECTION AND CONTINUE WITH THE PURCHASE. EXAMPLES OF SOME TYPES OF PROHIBITED USES COULD BE OPERATING A DAY CARE CENTER, PARKING AN RV IN VIEW OF THE STREET, PUTTING IN A SWIMMING POOL IN THE BACK YARD, ETC.
Toxic Substances - Environmental Addendum
WHEN A BUYER IS CONCERNED ABOUT TOXIC SUBSTANCES, ETC. THEY SHOULD ATTACH THE ENVIRONMENTAL ASSESSMENT, WETLANDS AND THREATENED OR ENDANGERED SPECIES ADDENDUM THAT ALLOWS THEM TO DO TESTING FOR ANY OF THESE SITUATIONS
Farm and Ranch Improvements
WINDMILLS, TANKS, BARNS, ETC. ARE CONSIDERED FARM AND RANCH IMPROVEMENTS BECAUSE THEY ARE PERMANENTLY BUILT-IN ITEMS. TRUCKS AND TRACTORS ARE PERSONAL PROPERTY
Environmental Addendum
SHOULD BE USED ANYTIME THE BUYER IS CONCERNED ABOUT TOXIC SUBSTANCES ON THE PROPERTY OR THE EXISTENCE OF THREATENED/ENDANGERED SPECIES OR WETLANDS ON THE PROPERTY. THE BUYER CAN TERMINATE IF THE REPORTS THEY RECEIVE SHOW CONDITIONS THAT ADVERSELY AFFECT THEIR INTENDED USE OF THE PROPERTY.
RSC--2 Form
SHOULD NOT BE ATTACHED TO THE CONTRACT AS AN ADDENDUM, BUT A COPY OF IT SHOULD BE RETAINED IN THE RECORDS OF THE TRANSACTION AFTER THE BUYER AND SELLER HAVE SIGNED IT. SINCE BOTH PARTIES SIGN THIS FORM, IF EITHER COMPANY HAS A RELATIONSHIP WITH AN RSC COMPANY, THEN BOTH COMPANIES SHOULD USE THE FORM. TAKE A COPY OF THE FORM WITH YOU TO CLOSING SO YOU MAKE SURE TO GET IT SIGNED.
Repairs
THE CONTRACT LANGUAGE DOES NOT REQUIRE EITHER PARTY TO PAY FOR OR MAKE LENDER REQUIRED REPAIRS. IF THERE ARE ANY LENDER REQUIRED REPAIRS THAT EXCEED 5% OF THE SALES PRICE, THE BUYER MAY TERMINATE THE CONTRACT AND GET A REFUND OF THEIR EARNEST MONEY
Foreign Seller
THE FEDERAL TAX REQUIREMENTS FOR PROPERTIES SOLD BY A FOREIGN SELLER REQUIRES THE BUYER TO WITHHOLD MONEY FROM THE SELLER'S PROCEEDS FOR CAPITAL GAINS TAX. A SELLER WITH NO SOCIAL SECURITY NUMBER OR GREEN CARD (WORK VISA) IS CONSIDERED A FOREIGN PERSON. THE TITLE COMPANY TYPICALLY ASSISTS THE BUYER IN COLLECTING THIS MONEY AND SENDING IT TO THE INTERNAL REVENUE SERVICE.
Condo Contract Differences:
THE LEGAL DESCRIPTION IS HANDLED DIFFERENTLY, THERE ARE PROVISIONS FOR THE SELLER TO PROVIDE CONDO DOCUMENTS AND A RESALE CERTIFICATE TO THE BUYER WITHIN A NEGOTIATED NUMBER OF DAYS. SOMETIMES THERE COULD ALSO BE A RIGHT OF FIRST REFUSAL BY THE CONDO ASSOCIATION OR A MEMBER OF THE ASSOCIATION. THE RESALE CERTIFICATE AND THE CONDO DOCUMENTS ARE PREPARED BY THE CONDO ASSOCIATION. THE CONDO RESALE CERTIFICATE SHOULD BE NO MORE THAN 3 MONTHS OLD WHEN DELIVERED TO THE BUYER.
Mediation
THE POLICY OF THE STATE OF TEXAS IS TO MEDIATE DISPUTES BEFORE SUING EACH OTHER. THE COST OF THE MEDIATION IS SHARED BETWEEN THE SELLER AND THE BUYER, BUT IT DOES NOT WAIVE EITHER PARTY'S RGHT TO SUE THE OTHER PARTY IF THEY ARE UNHAPPY WITH RESULTS OF THE MEDIATION
Farm and Ranch Contract: 2 Separate Sellers Disclosures
THE REGULAR ONE THAT DEALS WITH THE CONDITION OF THE FARMHOUSE AND ANOTHER DISCLOSURE THAT DEALS WITH ADVERSE LAND CONDITIONS THAT MUST BE DISCLOSED IN THE CONTRACT, SUCH AS WHETHER THE OTHER ACREAGE HAS FLOODED, THERE ARE WETLANDS, ETC.
Inspector
THE TREC CONTRACT ALLOWS BUYERS TO HAVE THE PROPERTY INSPECTED BY INSPECTORS LICENSED BY TREC OR BY PERSONS OTHERWISE PERMITTED BY LAW TO MAKE INSPECTIONS. SELLERS SHOULD HAVE UTILITIES ON SO INSPECTIONS CAN BE DONE.
Cooperative Sale
THERE ARE TWO DIFFERENT BROKERAGE COMPANIES INVOLVED IN THE SALE, ONE FIRM WHO LISTED THE PROPERTY AND ANOTHER FIRM WHO IS SELLING IT.
Abstract of Title
THERE IS A NOTICE TO PROSPECTIVE BUYER WHICH CAN BE USED TO NOTIFY THE BUYER THAT THEY SHOULD EITHER GET AN ABSTRACT OF TITLE AND HAVE IT EXAMINED BY AN ATTORNEY OR OPTAIN A POLICY OF TITLE INSURANCE. TREC REQUIRES LICENSE HOLDERS TO GIVE THIS ADVICE IN WRITING TO ALL BUYERS. IF USING THE TREC PROMULGATED CONTRACTS, THE NOTICE IS ALREADY PRINTED IN THE CONTRACT FORM AND IN THE BUYER REPRESENTATION AGREEMENT, SO THE SEPARATE NOTICE IS NOT NECESSARY.
Creating a Valid Option
TO CREATE A VALID OPTION: 1) THE APPROPRIATE BLANKS IN PARAGRAPH 5 (A. & B) MUST BE FILLED IN, 2) THE OPTION FEE MUST HAVE BEEN PAID WITHIN 3 DAYS OF THE EFFECTIVE DATE OF THE CONTRACT, AND 3) THE OPTION FEE MUST HAVE BEEN DELIVERED TO THE ESCROW AGENT. ~ THE OWNER'S TITLE POLICY CAN BE PAID FOR BY EITHER THE BUYER OR THE SELLER.
Agent selling Condo on behalf of family member...
UNDER THE BROKER OR SALES AGENT DISCLOSURE, REMEMBER THAT TEXAS REQUIRES US TO DISCLOSE ANYTIME WE ARE A PARTY TO THE CONTRACT OR ANYTIME WE ARE REPRESENTING OUR SPOUSE, PARENTS OR CHILDREN, ETC.; Self, spouse, parent, child
Right of 1st Refusal
the provision in a lease give the tenant a right to purchase leased property by matching or bettering any offer before the property will be sold to someone else
Buyer's Temporary Lease
used when the buyers moves in before closing, up to 90 days prior to closing THE BUYERS TEMPORARY RESIDENTIAL LEASE ALLOWS THE BUYER TO MOVE INTO THE PROPERTY BEFORE CLOSING. A TREC FORM MUST BE USED TO CREATE THIS LEASE AND IT IS NOT TO BE USED FOR MORE THAN A 90 DAY OCCUPANCY BEFORE CLOSING. THE RENTAL IS BASED ON A DAILY AMOUNT AND THE PROPERTY IS TO BE USED FOR RESIDENTIAL PURPOSES ONLY. MOST SELLERS DO NOT LIKE HAVING THE BUYER MOVE IN BEFORE CLOSING BECAUSE THEY SOMETIMES DECIDE TO NOT CLOSE ON THEIR PURCHASE.
When does it become a Contract (binding)...
when all parties sign, and the acceptance is communicated to the offering party.
Buyer approval is deemed to be obtained...
when the terms of the loan in the addendum are available and the buyer has satisfied all the lenders requirements regarding the buyers assets, income and credit history
The process of offer/counteroffer
will continue until one of the parties accepts or grows weary and withdraws from the negotiations
Broker Lawyer Committee
writes promulgated contracts 13 members 6 are brokers 6 lawyers and 1 public member
Common Ammendments
1. change in closing date 2. change in sales price, down payment or amt financed 3. repairs that the seller agrees to perform 4. removal of contingencies
Prior to 1978
FOR PROPERTIES BUILT BEFORE 1978, SELLERS MUST PROVIDE BUYERS WITH A LEAD BASED PAINT DISCLOSURE FORM REQUIRED BY FEDERAL LAW. THE FORM DISCLOSES ANY KNOWLEDGE THE SELLER MAY HAVE, GIVES THE BUYER COPIES OF ANY REPORTS ON LEAD THE SELLER MAY HAVE, ALLOWS THE BUYER TO WAIVE A RISK ASSESSMENT FOR LEAD OR TO CONDUCT ONE WITH 10 DAYS AFTER THE EFFECTIVE DATE OF THE CONTRACT AS WELL AS TERMINATE WITHIN 14 DAYS IF THEY DISCOVER DANGEROUS LEVELS OF LEAD. THE BUYER MUST ACKNOWLEDGE RECEIPT OF ANY REPORTS FROM THE SELLER AND ALSO RECEIPT OF THE FEDERAL BOOKLET "PROTECT YOUR FAMILY FROM LEAD IN YOUR HOME"
Public Improvement District (PID)
IS A SPECIAL TAXING ENTITY THAT WAS CREATED AT THE REQUEST OF THE PROPERTY OWNERS IN A GIVEN AREA. IN ORDER TO CREATE THE PID, A VOTE OF AT LEAST 51% OF THE PROPERTY OWNERS AFFECTED BY THE NEW TAX IS REQUIRED. BUYERS PURCHASING PROPERTY IN A PID MUST BE PROVIDED NOTICE OF THE EXTRA TAX THAT IS LEVIED BY EITHER THE COUNTY OR THE CITY WHO MADE THE REQUESTED IMPROVEMENTS TO THE AREA.
Escrow Agent
IS NOT A PARTY TO THE CONTRACT. THEY PERFORM TWO PRIMARY FUNCTIONS: ESCROW SERVICES AND ISSUANCE OF TITLE INSURANCE. THE TITLE COMPANY REPRESENTATIVE WILL OPEN TITLE ON THE PROPERTY ONCE THEY GET A COPY OF THE SIGNED CONTRACT.
Termination Option
IS PAID DIRECTLY TO THE ESCROW AGENT, OR TITLE COMPANY, ALONG WITH THE EARNEST MONEY. IT IS NOT A REQUIREMENT FOR THE CONTRACT, BUT WHEN AGREED UPON AND PAID WITHIN 3 DAYS OF THE EFFECTIVE DATE, IT GIVES THE BUYER THE UNRESTRCTED RIGHT TO TERMINATE WITHIN A NEGOTIATED NUMBER OF DAYS. THIS IS TYPICALLY WHEN THE BUYER WILL DO THEIR INSPECTIONS. ANY NOTICE OF TERMINATION MUST BE IN WRITING AND DELIVERED TO THE SELLER NO LATER THAN 5:00 PM ON THE FINAL DAY OF THE OPTION PERIOD AS DETERMINED BY THE EFFECTIVE DATE AND # OF OPTION PERIOD DAYS NEGOTIATED.
Proration
IS THE PROCESS OF DIVIDING UP THE ONGOING EXPENSES OF OWNERSHIP BETWEEN THE SELLER ND THE BUYER SUCH AS PROPERTY TAXES, HOA FEES, RENTS, ETC. THEY ARE USUALLY PRORATED THROUGH THE DATE OF CLOSING WITH THE SELLER PAYING FOR THAT DAY.
intermediary
ALWAYS 1 BROKER THE OFFER TO COOPERATE IS NOT AN OFFER TO COMPENSATE. WE CONFIRM COMMISSION IN THE MLS OR BY SEPERATE WRITTEN AGREEMENT.
Terminate a Contract: Impossibility
AN EXAMPLE OF IMPOSSIBILITY WOULD BE DEATH OF ONE OF THE PARTIES, BUT IT WOULD NOT INCLUDE DEATH OF THE SALES AGENT ASSISTING PARTIES IN THE TRANSACTION.
Terminate a Contract: Partial Performance
AN EXAMPLE OF PARTIAL PERFORMANCE IS WHEN THE LANDLORD ALLOWS A TENANT TO TERMINATE A LEASE EARLY WITHOUT HOLDING THEM LIABLE FOR THE BALANCE OF THE TERM
At closing earnest $.....
APPLIED FIRST TO THE BUYER'S DOWN PAYMENT AND ANYTHING LEFT OVER IS APPLIED TO BUYER'S OTHER EXPENSES. ANY OVERAGE IS REFUNDED.
General Warranty Deed
AT CLOSING THE SELLER WILL SIGN A WHAT _________________ TO TRANSFER TITLE TO THE BUYER
Elements of a Valid Contract (COLIC)
1. Competent Parties 2. Offer and Acceptance 3. Legal Purpose 4. In Writing 5. Consideration
Broker Information Page Allows for 2 Types of Sales:
1. Cooperative "Co-op" 2. In House Sales
Choices for Offeree
1. Do Nothing 2. Reject 3. Accept 4. Counteroffer
2 Biggest Concerns with Assumption:
1. Seller's ongoing liability for repayment of the loan and the time needed to process the buyer's application (75-90 days) 2. The seller may request a release of liability on the assumption, but the lender does not have to approve it. If the release is not obtained, the seller and the buyer are both liable for repayment of the loan.
Broker Information Page
ALLOWS FOR TWO TYPES OF SALES: COOPERATIVE SALES AND IN-HOUSE SALES. IN A COOPERATIVE SALE THERE ARE TWO DIFFERENT BROKERAGE COMPANIES INVOLVED IN THE SALE, ONE FIRM WHO LISTED THE PROPERTY AND ANOTHER FIRM WHO IS SELLING IT. IN AN IN-HOUSE SALE, THERE IS ONLY ONE BROKERAGE INVOLVED AND THEY ARE HANDLING BOTH SIDES OF THE TRANSACTION.
Escrow Services
ESCROW SERVICES HAPPEN WHENEVER SOMETHING OF VALUE, SUCH AS A DEED OR EARNEST MONEY, IS PUT INTO THE CUSTODY OF A THIRD PARTY TO BE RETAINED BY THEM UNTIL TYPICALLY CLOSING OF THE SALE.
Expenses payable by the buyer at closing...
INCLUDE THE APPRAISAL FEE, LOAN APPLICATION FEES AND OTHER FEES ASSOCIATED WITH GETTING A NEW LOAN, RESERVE DEPOSITS, ETC
Executory Contract
From the effective date to closing; defined as a contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed
11 Exceptions to Seller's Disclosure
Get familiar with them
A standard Texas Title Insurance Policy does NOT
INSURE AGAINST BOUNDARY ISSUES BUT SOMETIMES A LENDER REQUIRES THAT THE LANGUAGE BE AMENDED TO JUST READ SHORTAGES IN AREA. AN ENDORSEMENT TO THE STANDARD POLICY IS DONE TO MAKE THAT CHANGE.
Void Contract
INVALID FROM THE START, SUCH AS A CONTRACT FOR SOME ILLEGAL ACT
Unenforceable Contract
HAS A FLAW AND CANNOT BE ENFORCED, TOO MUCH TIME HAS ELAPSED OR OTHER ISSUES THAT MAKE IT UNENFORCEABLE.
Seller Financing
IF A BUYER CANNOT QUALIFY FOR REGULAR THIRD PARTY FINANCING, THEY MAY CONSIDER THE POSSIBILITY OF ASKING THE SELLER TO CARRY THE FINANCING FOR THEM. ON THE SELLER FINANCING ADDENDUM, THE BUYER AUTHORIZES ANY CREDIT REPORTING AGENCY TO FURNISH COPIES OF THE BUYER'S CREDIT REPORTS TO THE SELLER AT THE BUYER'S EXPENSE, BUT IT IS UP TO THE SELLER TO APPROVE THEM FOR THE LOAN. THE INTEREST RATE IS NEGOTIABLE BETWEEN THE SELLER AND THE BUYER.
Liquidated Damages
IF THE BUYER DEFAULTS, THE SELLER'S OPTIONS ARE TO ACCEPT THE EARNEST MONEY AS LIQUIDATED DAMAGES, SEEK OTHER MONETARY DAMAGES AS AFFORDED BY LAW OR TO SUE THE BUYER FOR SPECIFIC PERFORMANCE AND FORCE THEM TO COMPLETE THE TRANSACTION AS ORIGINALLY AGREED.
Notice of Termination
IF THE BUYER GIVES A NOTICE OF TERMINATION NO LATER THAN 5:00 PM ON THE FINAL DAY OF THE OPTION PERIOD, THEY ARE ENTITLED TO A REFUND OF THEIR EARNEST MONEY, BUT THE OPTION FEE IS NEVER REFUNDABLE. AT CLOSING THE OPTION FEE WILL AUTOMATICALLY BE CREDITED OR APPLIED TO THE SALES PRICE.
Survey
IF THE EXISTING SURVEY IS NOT ACCEPTABLE TO EITHER THE BUYER'S LENDER OR THE TITLE COMPANY, A NEW SURVEY WILL BE OBTAINED AT EITHER THE BUYER'S OR SELLER'S EXPENSE AS NEGOTIATED IN THE CONTRACT.
Certificated Service Area
IF THE PROPERTY IS LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY SERVICE PROVIDER, THERE MAY BE SPECIAL COSTS THE BUYER WILL HAVE TO PAY TO GET WATER AND SEWER SERVICES, AS WELL AS A DELAY IN REVEIVING THOSE SERVICES TO GIVE TIME TO CONSTRUCT THE DELIVERY LINES TO THE PROPERTY. UTILITY SERVICE PROVIDERS ARE BUSINESSES LICENSED BY THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND PRIMARILY OPERATE IN RURAL AREAS. AN ADDENDUM IS USED TO NOTIFY THE BUYER OF THIS POSSIBILITY.
In House Sale
IN AN IN-HOUSE SALE, THERE IS ONLY ONE BROKERAGE INVOLVED AND THEY ARE HANDLING BOTH SIDES OF THE TRANSACTION. WE ARE NOT A PARTY TO THE CONTRACT, BUT WE ARE A PARTY TO THE TRANSACTION.
Issue of Commitment for Title Insurance
IN TEXAS, THE TITLE COMPANY HAS 20 DAYS AFTER RECEIPT OF A CONTRACT TO ISSUE A COMMITMENT FOR TITLE INSURANCE
Expenses payable by the seller at closing...
INCLUDE PAYOFF AND RELEASES OF ANY LIENS AGAINST THE PROPERTY, RECORDING FEES, TAX CERTIFICATES AND PREPARATION OF THE DEED
Condo Repairs
SELLER IS SUPPOSED TO COMPLETE ALL REPAIRS PRIOR TO CLOSING. IF THEY DON'T, THE BUYER CAN EXTEND CLOSING UP TO 5 DAYS TO GIVE THEM TIME TO FINISH THE AGREED UPON REPAIRS, OR THEY CAN EXERCISE REMEDIES IN THE DEFAULT PARAGRAPH.
Seller Financing
Interest rate is always negotiable
Unilateral Contract
Lacks mutuality and an option is a good example; the seller have given the buyer the right to purchase the property at a preset price and terms for a period of time, the buyer has paid some consideration up front, usually in the form of an option fee
Seller's Disclosure
REMEMBER THE PURPOSE OF THE SELLER'S DISCLOSURE NOTICE IS TO HAVE THE OWNER OF THE PROPERTY DISCLOSE ALL KNOWN FACTS AND/OR DEFECTS CONCERNING THE PROPERTY. THERE ARE 11 EXCEPTIONS TO THE REQUIREMENT TO GIVE A SEPARATE SELLER'S DISCLOSURE MENTIONED ON PG 67, SUCH AS LENDERS WHO FORECLOSED OR EVEN ON NEW CONSTRUCTION THAT HAS NEVER BEEN OCCUPIED.
Valid Contract
MEETS ALL THE REQUIREMENTS OF LAW
One to Four Family Residential Contract
Means the contract if used for single family homes, duplex, triplex, four unit buildings or townhomes; not to be used for condos
Earnest Money
Must be delivered to the escrow agent within 3 days after the effective date of the contract. Earnest $ is not a requirement to have a valid contract so the $ amount of earnest is always negotiable between the parties. It can be in the range of 1% of the purchase price. Technically it is an upfront deposit paid by the buyer to show they are serious about completing the purchase.
Surfaces Leases
Must be disclosed to the buyer, any written agreements must be stated in the contract. The title policy makes an exception to these leases
Voidable Contract
NOT ENFORCEABLE AGAINST A PARTY, Minors
Default
OCCURS WHEN EITHER PARTY TO THE CONTRACT FAILS TO DO WHAT THEY PROMISED. WHEN THAT OCCURS, THERE IS A BREACH OF CONTRACT AND THE OTHER PARTY IS INJURED AND WILL THEREFORE HAVE REMEDIES AS STATED IN THE CONTRACT
TREC has promulgated forms for
One to four family; new home incomplete; new home complete, farm and ranch and condominiums resale
Paragraph 5
PLEASE NOTE THAT TIME IS OF THE ESSENCE FOR PERFORMANCE UNDER PARAGRAPH 5 FOR BOTH THE DELIVERY OF THE EARNEST MONEY, OPTION FEE AND THE NOTICE OF TERMINATION WHEN AN OPTION FEE IS PAID ON TIME.
VA Guaranteed Financing
Requires the buyer to receive a certificate of reasonable value from the VA showing that the property appraised at or above the sales price. If is does not appraise high enough, the veteran can ask the seller to lower the price, terminate the contract or decided to pay extra money as the down payment to make up the shortage
TCEQ
Texas Commission on Environmental Quality
Seller's Existing Survey
The seller has to provide a copy of the survey and a notarized T-47 affidavit to the buyer and the escrow agent within an agreed number of days after the effective date of the contract.
Condo Contract Paragraph 3b
The sum of all financing from all sources, the loan amount
Counteroffer is...
a two step process: the rejection of the original offer coupled with a new offer
Multiple Offers
all offers must be presented; they can be presented in any order the agent decides the order
Accessories
are not permanently installed or built in items; but if any of them are present, they are still part of the property and are conveyed to the buyer at closing
Provision in an addendum
contradicts a provision in the main body of the contract. In such a case, the provision in the addendum prevails
Doctrine of Imputed Notice
delivering an offer to the agent is the same as delivering it to their client
Good Funds
described as a cashiers check or wire transfer
Third Party Financing
includes both Government Loans and Conventional Loans; the loan program should be explained on the 3rd Party Addendum, 3rd Party financing is the most commonly used type of financing, but it is not to be used for seller financing or an assumption of an existing loan
Assignment
is a total transfer for the buyers rights and liabilities under a contract. Contracts for personal services are not assignable such as the listing agreement or the buyer representation agreement; usually all cash buyers
The Broker getting the final acceptance of the offer...
is responsible for filling in the effective date in the contract
Sales Price
is the sum of the down payment and the loan amount(s), so the down payment is always the difference between the sales price and the loan amount
Exclusions
items the seller wants to keep and must be listed in the contract language as an exclusion; give it a name and location; are to be removed "prior to delivery of possession"
TREC Form
minimum requirements of TX property code
Offers
must be presented regardless of how ridiculous they may be; all offfers should be evaluated before presenting them to the seller.
Closing Date
negotiated between the buyer and seller
Option Fee
never refundable
Assumption
occurs when a buyer assumes and takes over the payments on a sellers existing mortgage
Acceptance of an Offer
occurs when the accepting party makes no changes to the offer they received
Offeror
person making the offer
Offers can by communicated by:
phone, fax, email, letter or hand deliver
Addenda
plural changes
Presentation of offers...
should be in person and in a timely manner
Addendum
singular change
Consideration
something of value exchanged for something else of value; something given in exchange for a promise; it does not have to be money and it is definitely not the earnest money. Earnest money is not a requirement to have a valid contract