Purchase agreement Virginia
In Virginia, in what form can a buyer pay earnest money? Cash, check, bank letter of credit, or promissory note Cash or check onlyCheck, cashier's check, or wired funds IOU or cash only
Cash, check, bank letter of credit, or promissory note
Per the Wood Infestation Inspection and Report section of the Residential Contract of Purchase, who must pay for a wood infestation inspection and report of the property? Either the buyer or the seller must pay for both Only the buyer must pay for both Only the seller must pay for both The seller must pay for the inspection and the buyer must pay for the report.
Only the seller must pay for both Per the Wood Infestation Inspection and Report section, the seller must pay for both the inspection and the report.
How may a signed purchase agreement be legally changed? Only by an attorney Only by court order Only if the buyer and seller give their verbal agreement to the change. Only through the written agreement of all parties
Only through the written agreement of all parties
Both the seller and the buyer are required to pay their portion of taxes, assessments, interest, rent escrow deposits, and other ownership fees. These fees are ______ as of the date of settlement. Apportioned Estimated Paid in full Prorated
Prorated
In which section of the Residential Contract of Purchase can buyers request that the seller provide them with a copy of the Residential Property Disclosure form?
The Notice of Disclosure Pursuant to Virginia Residential Property Disclosure Act section
Which section of the Residential Contract of Purchase is required by Virginia law to be included in any contract for the purchase of real estate that has between one and four residential dwelling units? The Home Owner's Inspection section The Notice to Purchaser Regarding Settlement Agent and Settlement Services section The Notice to Purchaser(s) section The Seller's and Purchaser's Options section
The Notice to Purchaser Regarding Settlement Agent and Settlement Services section
Which section of the Residential Contract of Purchase requires the seller of a property within a development that is subject to the Virginia Property Owners' Association Act to give the buyer a copy of the property owners' association packet?
The Property Owners' Association Disclosure section
Is the following statement true or false? "All sales contracts are contingent on financing."
Although many buyers cannot afford to purchase a property without the help of a loan, some buyers do not have to make the contract contingent on financing.
If there are defects to a title, the seller must pay to have the issues resolved and must do so within ______________ of the settlement date. 15 days 30 days 45 days 60 days
60 days If there are defects to a title, the seller must pay to have the issues resolved and must do so within 60 days of receiving notice of the defect.
When is the balance of the down payment due? At settlement The day following contract ratification The day the earnest money deposit is submitted Within 30 days after closing
At settlement
A buyer pays the balance of the down payment in the form of cash, a certified check, a cashier's check, or ______. A promissory note Bank letter of cedit Bank-wired funds Personal check
Bank-wired funds
In what form may a buyer pay the balance of the down payment? Cash, certified check, cashier's check, or bank-wired funds IOU or bank letter of credit Personal check or cash Promissory note or cashier's check
Cash, certified check, cashier's check, or bank-wired funds
Which statement about the buyer's selection of the settlement agent is true? Buyers must follow the guidelines provided by the Virginia State Bar when selecting a settlement agent. Chapter 27.3 of Title 55 of the Code of Virginia gives the buyer the right to select the settlement agent. Sellers can waive buyers' right to select the settlement agent. Virginia law mandates that the buyer select a settlement agent who is a licensed Virginia attorney.
Chapter 27.3 of Title 55 of the Code of Virginia gives the buyer the right to select the settlement agent.If the seller does not accept the buyer's offer by the date and time specified in the purchase agreement, the offer is null and void.
Reggie has a buyer client who is purchasing a home built before 1978. Which two documents must Reggie ensure that his client receives as part of the Residential Lead-Based Paint Hazard Reduction Act? EPA lead-based paint brochure and residential property disclosure EPA lead-based paint brochure and state-specific lead-paint disclosure State-specific lead-paint disclosure and residential property disclosure Synopsis of the Lead-Based Paint Hazard Reduction Act and EPA lead-based paint brochure
EPA lead-based paint brochure and state-specific lead-paint disclosure
Per the Equipment Condition and Inspection section of the Residential Contract of Purchase, what can the buyer do if the seller fails to deliver the property in the condition required by the purchase agreement? Add the cost of the clean-up/repairs to the seller's closing costs Either terminate the contract or waive the defect Pitch a hissy fit Sue the seller for damages
Either terminate the contract or waive the defect The buyer may terminate the contract and receive back their deposit or they can elect to waive the defect and proceed to settlement with no adjustment to the purchase price.
Per the Well and Septic section of the Residential Contract of Purchase, what can the buyer do if the seller fails to remedy or repair defects to a well or septic system? Contact the EPA and report the seller. Either terminate the contract or waive the defect. Require the seller to take a much lower offer. Sue the seller for damages.
Either terminate the contract or waive the defect.
Which of the following statements about the seller's acceptance of the buyer's offer is true? If the seller does not accept the buyer's offer by the date and time specified in the purchase agreement, the offer is null and void. If the seller does not provide acceptance by the date and time specified in the contract, the offer is assumed to be accepted. Once the seller accepts the buyer's offer, no changes can be made to the contract. The seller can verbally acceptance the offer.
If the seller does not accept the buyer's offer by the date and time specified in the purchase agreement, the offer is null and void.
In Virginia, what type of deed is used to convey property?
In Virginia, sellers convey property with a general warranty deed.
Which section of the Residential Contract of Purchase states that anyone who has done construction, performed labor, or provided material for the construction, repair, removal, or other improvement on a property has the right to file a lien against the property? Mechanic's Lien Notice The Home Owner's Inspection section The Notice to Purchaser(s) section The Seller's and Purchaser's Options section
Mechanic's Lien Notice
Who Pays for What?
Nicely done! In addition to these fees, the buyer and seller have to pay their prorated portion of taxes, assessments, interest, rent escrow deposits, and other ownership fees, as well as any legal fees. The buyer is also responsible for paying the seller for any fuel, oil, and/or propane that remains in the tanks at the property, if applicable.
Per the Wood Infestation Inspection and Report section of the Residential Contract of Purchase, when must the written wood infestation inspection report be completed? No more than 15 days prior to settlement No more than 20 days prior to settlement No more than 30 days prior to settlement No more than 45 days prior to settlement
No more than 30 days prior to settlement
What is the difference between the Purchase Agreement sections: The Notice to Purchaser(s) section & The Notice to Purchaser Regarding Settlement Agent & Settlement Service section?
Notice to Purchaser Regarding Settlement Agent & Settlement service sates that purchaser or buyer has the right to choose which settlement agent will handle the closing & the role of the settlement agent - VERY IMPORTANT - Virginia law requires that this section be included in any contract for the purchase of real estate that has between one and four residential dwelling units. The Notice to Purchaser(s) says that the buyer should exercise due diligence in regards to sex offenders.
In which section of the Residential Contract of Purchase do buyers indicate the price they are offering for the property and how they plan to finance the purchase? Deposit section Parties section Purchase Price section Real Property section
Purchase Price section
In which section of the Residential Contract of Purchase does the buyer specify the settlement date? The Brokerage Fee; Settlement Statements section The Expenses; Prorations; Rollback Taxes section The Loans Fee section The Settlement; Possession section
The Settlement; Possession section
There is an item called Balance of Purchase Price in the Purchase Price section of the Residential Contract of Purchase. What does this item refer to? The amount of earnest money the buyer is putting down The amount of money the buyer is planning to bring to the table at settlement The amount of the buyer's first loan payment The amount the buyer is offering for the property
The amount of money the buyer is planning to bring to the table at settlement
If the buyer is putting earnest money down, which of the following statements is true? The buyer can require the seller to subtract that amount from the asking price. The buyer has to pay for an escrow account to be set up and managed. The buyer must specify the exact amount in the Residential Contract of Purchase. The earnest money must be in the form of a certified check and personally delivered to the seller.
The buyer must specify the exact amount in the Residential Contract of Purchase.
Which of the following statements about the seller and the settlement agent is true? The seller does not have the right to require the buyer to use a particular settlement agent as a condition of the sale of the property. The seller does not have the right to require the buyer to use a particular settlement agent as a condition of the sale of the property unless the agent is also a licensed attorney. The seller has the right to require the buyer to use a particular settlement agent as a condition of the sale of the property. The seller has the right to require the buyer to use a particular settlement agent as a condition of the sale of the property if the buyer agrees.
The seller does not have the right to require the buyer to use a particular settlement agent as a condition of the sale of the property.
The Craigs are in the process of buying the Woodlands' home. As part of the purchase agreement, the Craigs put a remediation limit of $1,000 in the event the Woodlands had to pay to fix any title or property issues. There have been numerous issues and the estimated cost of addressing all the issues will exceed the remediation limit. The Woodlands have agreed to pay up to $1,000 but no more. Which of the following options do the Craigs have? They can either accept the property in its present condition or terminate the agreement. They can require the Woodlands to pay them back for the cost of any inspections. They can require the Woodlands to reduce the purchase price of the home by the difference between the remediation limit and the actual costs to fix the issues. They can sue the Woodlands for breach of contract.
They can either accept the property in its present condition or terminate the agreement.
What is the purpose of the Default section of the Residential Contract of Purchase? To define Virginia's policy of no-fault defaults. To explain the process for how the seller or buyer sues for damages. To explain what happens in the event either party defaults. To provide detailed examples of default behavior and resulting consequences.
To explain what happens in the event either party defaults.
earnest money deposit paid in
To summarize, if the buyer chooses to make an earnest money deposit, the deposit must be in the form of cash, check, bank letter of credit, or promissory note. The buyer must either provide the earnest money when submitting the offer or indicate a definite date when it will be provided.
When and how is the buyer required to pay the balance of the purchase price? Select the two answers that apply. The balance of the purchase price must be made by personal check. The balance of the purchase price must be paid in cash, by cashier's or certified check or wired funds. The balance of the purchase must be paid before the settlement date. The balance of the purchase must be paid at settlement.
To summarize, the balance of the down payment must be paid in cash or by a certified check, cashier's check, or by bank-wired funds and paid at settlement.
Settlement and Possession
To summarize, the buyer proposes the settlement date, but the date is negotiable if the seller wants to propose a different date. The seller must deliver specific items at settlement, including but not limited to the deed, an affidavit for the title insurance company regarding the parties in possession of the property and mechanic's liens. Usually, the buyer takes possession of the property at settlement.
