Podcast
Questions and Answers
What occurs if the parties do not mutually agree on the release of funds?
What occurs if the parties do not mutually agree on the release of funds?
What does the clause stating that a party authorizes their Broker to accept delivery of the contract imply?
What does the clause stating that a party authorizes their Broker to accept delivery of the contract imply?
Which requirement must be met regarding the Non-Foreign Seller disclosure?
Which requirement must be met regarding the Non-Foreign Seller disclosure?
What does the Termination of Offer date signify?
What does the Termination of Offer date signify?
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What does the Earnest Money Form address?
What does the Earnest Money Form address?
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If the Seller rejects the Buyer's offer, what is required from the Seller?
If the Seller rejects the Buyer's offer, what is required from the Seller?
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What is the primary purpose of the pre-contract form?
What is the primary purpose of the pre-contract form?
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What must brokers provide to fulfill the written disclosure requirement?
What must brokers provide to fulfill the written disclosure requirement?
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When are mineral rights automatically included with a property?
When are mineral rights automatically included with a property?
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In a real estate contract, what is the default assumption regarding transaction type?
In a real estate contract, what is the default assumption regarding transaction type?
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What is the time frame within which a buyer must deliver earnest money after contract execution?
What is the time frame within which a buyer must deliver earnest money after contract execution?
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How is the effective date of a contract determined?
How is the effective date of a contract determined?
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What is required in a transaction if the buyer intends to secure financing?
What is required in a transaction if the buyer intends to secure financing?
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What must be done to confirm the previously disclosed brokerage duties and responsibilities?
What must be done to confirm the previously disclosed brokerage duties and responsibilities?
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What happens if a buyer fails to provide earnest money within the specified time frame?
What happens if a buyer fails to provide earnest money within the specified time frame?
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What is the maximum time allowed for a Buyer to notify the Seller of contract cancellation after the inspection period ends?
What is the maximum time allowed for a Buyer to notify the Seller of contract cancellation after the inspection period ends?
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What document must be submitted by the Buyer to request repairs from the Seller?
What document must be submitted by the Buyer to request repairs from the Seller?
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If a written agreement on repairs is not achieved within the stipulated period, what happens to the contract?
If a written agreement on repairs is not achieved within the stipulated period, what happens to the contract?
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Who is responsible for paying the Attorney's Title Opinion or Title Insurance?
Who is responsible for paying the Attorney's Title Opinion or Title Insurance?
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What happens if the Title Evidence is not provided within ten days before Closing?
What happens if the Title Evidence is not provided within ten days before Closing?
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What is meant by 'Time is of the essence' in the context of this contract?
What is meant by 'Time is of the essence' in the context of this contract?
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What must the Seller provide to the Buyer within 30 days before the Closing Date?
What must the Seller provide to the Buyer within 30 days before the Closing Date?
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What recourse does the Buyer have if title requirements identified in the Attorney’s Title Opinion are not resolved?
What recourse does the Buyer have if title requirements identified in the Attorney’s Title Opinion are not resolved?
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What should a Buyer do if an existing service agreement is in place on the property?
What should a Buyer do if an existing service agreement is in place on the property?
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Which of the following statements best describes the responsibilities regarding earnest money in this contract?
Which of the following statements best describes the responsibilities regarding earnest money in this contract?
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Flashcards
Pre-contract Disclosure Form
Pre-contract Disclosure Form
A form used to ensure all necessary disclosures about brokerage services, property condition, lead-based paint, and transaction costs are communicated to all parties involved in a real estate transaction, and all parties confirm receipt.
Brokerage Duties Disclosure Form
Brokerage Duties Disclosure Form
A form that outlines the broker's duties and responsibilities in the transaction, required to be disclosed in writing to all parties before contract signing.
Mineral Rights Transfer
Mineral Rights Transfer
Mineral rights automatically transfer with the property unless the seller reserves them or they were previously reserved.
Cash Transaction Default
Cash Transaction Default
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Earnest Money Timeframe
Earnest Money Timeframe
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Contract Effective Date
Contract Effective Date
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Time Reference Date
Time Reference Date
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Financing Supplement
Financing Supplement
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Contract cancellation for earnest money
Contract cancellation for earnest money
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Broker's role in escrow
Broker's role in escrow
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Broker-received contract delivery
Broker-received contract delivery
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Non-foreign seller disclosure
Non-foreign seller disclosure
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FIRPTA requirements ($300k+)
FIRPTA requirements ($300k+)
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Earnest Money handling
Earnest Money handling
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Offer expiration date
Offer expiration date
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Inspection Time
Inspection Time
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Buyer's Review Period (Contract)
Buyer's Review Period (Contract)
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TRR Form
TRR Form
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Defect (Property)
Defect (Property)
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Title Opinion/Insurance
Title Opinion/Insurance
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Seller's Title Evidence
Seller's Title Evidence
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Title Issues Resolution
Title Issues Resolution
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Breach of Contract
Breach of Contract
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Time is of the essence
Time is of the essence
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Study Notes
Pre-Contract Disclosures and Confirmations
- The pre-contract form ensures all disclosures (brokerage, property condition, lead-based paint, transaction costs) are communicated to all parties, requiring their signature for confirmation.
- Brokers must disclose their duties and responsibilities in writing before contract signing, using the "Disclosure of Brokerage Duties, Responsibilities, and Services" form.
- This must be confirmed in writing by parties, either in the contract or as an attachment; the form preceding the Residential Contract fulfills this.
Property Condition and Transaction Details
- Residential Property Condition: Disclosures cover property condition.
- Lead-Based Paint: Disclosures about lead-based paint are required.
- Estimated Transaction Costs: Estimated transaction costs are disclosed.
- Mineral Rights: Mineral rights transfer automatically unless reserved by the seller or previously reserved.
- Cash Transaction: The contract defaults to "cash" unless a financing supplement is included. Financing supplements are needed if the buyer seeks financing.
- Earnest Money: The buyer must deliver earnest money within three days of contract execution; failure results in the seller canceling the contract.
Timelines and Deadlines
- Time Reference Date: The contract's effective date starts the day after the Time Reference Date, not the signing date. All deadlines are based on this date.
- Default Time Period: If no Time Reference Date is given, the time period begins three days following the parties' final signatures.
- Inspection Considerations: Licensees should consult with the buyer to determine necessary inspections. Complex inspections (e.g., foundation cracks) might have longer completion times.
Contractual Repairs
- Buyer's Inspection Period (24 hours): The buyer has 24 hours after the inspection period to either cancel the contract if unsatisfactory or submit a Treatments, Repairs, and Replacements (TRR) form for requested repairs.
- Defects (Repair): A defect is a condition, malfunction, or problem materially impacting the property value and is not purely aesthetic.
- Seller's Response to TRR: Negotiation period for repairs is defined in the contract.
- Repair Completion: Seller completes agreed-upon repairs by the closing date. Non-agreement leads to contract termination, with earnest money return.
Title and Title Requirements
- Title Responsibility: Buyer pays for Attorney's Title Opinion or Title Insurance.
- Seller's Title Evidence: The Seller provides title evidence (abstract or title insurance policy, UCC search) to the buyer within 30 days before closing.
- Buyer's Title Examination: The buyer has ten days to examine title evidence and notify the seller of objections.
- Title Issues Resolution: The seller can address title issues; closing may be delayed for agreed time periods. Buyer can cancel if issues aren't resolved.
Tax, Assessments, Prorations, and Leases
- Tax Proration: The contract outlines tax proration at closing.
- Seller Responsibilities: The responsibilities of the seller regarding the property taxes, assessments, leases, utility districts, HOAs, and special taxing districts are detailed.
- Residential Service Agreement: Existing service agreements can be transferred or new ones purchased. Real estate brokers may receive a fee.
Additional Legal Clauses
- Additional Provisions: This section allows for additional contract clauses. Licensees should avoid legal jargon.
- Mediation: Negotiation and mediation are encouraged prior to legal action. Agreements in mediation are voluntary.
- Choice of Law: All disputes will be governed by Oklahoma state law and Oklahoma courts.
Breach of Contract and Closing Issues
- Breach of Contract: Any failure to meet agreement terms within the required timeframes constitutes a breach of the agreement.
- "Time is of the Essence": Failure to act within the time limit results in an incurable breach.
- Breach Remedies: Specified remedies are included for breaches (seller might retain earnest money).
- Earnest Money: There's an added amendment addressing timely earnest money delivery as per provision 2.
Parties' Expenses and Release of Earnest Money
- Expense Accountability: Each party is responsible for their expenses, and earnest money cannot cover them.
- Earnest Money Return Conditions: Conditions outlined for earnest money return if the contract is terminated.
- Broker's Role: Broker escrow holder's explicit role if the parties can't agree on earnest money release.
Seller's Affirmation
- Non-Foreign Seller (FIRPTA): Seller must confirm they aren't a foreign person (defined by FIRPTA), especially if the sale exceeds $300,000 or the buyer isn't using the property as a primary residence. Seller must provide an affidavit verifying this at closing—providing the appropriate tax identification under penalty of perjury.
Contract Execution Termination, and Receipt of Earnest Money Forms
- Execution and Dating: Parties need to sign and date the contract.
- Offer Termination: Buyer's offer expiry date if seller doesn't accept. Buyer brokers should facilitate communication.
- Earnest Money Form: A separate form for the receipt and management of earnest money.
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Description
Test your knowledge on pre-contract disclosures and confirmations required in real estate transactions. This quiz covers essential topics including property condition, lead-based paint disclosures, and transaction costs. Ensure you understand the responsibilities of brokers and the necessary forms involved before signing any contracts.
