Podcast
Questions and Answers
What document does the Buyer need to execute as additional security for the Seller?
What document does the Buyer need to execute as additional security for the Seller?
- A purchase agreement
- A security agreement (correct)
- A warranty deed
- A mortgage agreement
How should acceptance of the offer be communicated to the Offeror or Offeror’s Broker?
How should acceptance of the offer be communicated to the Offeror or Offeror’s Broker?
- By phone call within the acceptance period
- By certified mail within the acceptance period
- By delivery or fax within the acceptance period (correct)
- By email within the acceptance period
What is required from the Seller before closing regarding pest control?
What is required from the Seller before closing regarding pest control?
- A structural pest control inspection report (correct)
- A home warranty policy
- A title deed
- A mortgage approval document
What extent of cooperation is expected for an Internal Revenue Code §1031 exchange?
What extent of cooperation is expected for an Internal Revenue Code §1031 exchange?
Which document certifies that the sewage disposal system is functioning properly?
Which document certifies that the sewage disposal system is functioning properly?
What is the mediation process meant to achieve prior to any legal action?
What is the mediation process meant to achieve prior to any legal action?
What is the limitation of the Buyer's monetary liability to the Seller in the event of a breach?
What is the limitation of the Buyer's monetary liability to the Seller in the event of a breach?
What responsibility does the buyer have regarding supplemental property tax bills?
What responsibility does the buyer have regarding supplemental property tax bills?
When might a buyer terminate the agreement with the seller?
When might a buyer terminate the agreement with the seller?
What is required to transfer any personal property according to the document?
What is required to transfer any personal property according to the document?
What does California property tax law require when ownership of real property changes?
What does California property tax law require when ownership of real property changes?
What agency maintains information about the location of gas and hazardous liquid pipelines?
What agency maintains information about the location of gas and hazardous liquid pipelines?
Which of the following responsibilities does the seller have if the closing is canceled?
Which of the following responsibilities does the seller have if the closing is canceled?
Who should the buyer contact for information about transmission pipelines near their property?
Who should the buyer contact for information about transmission pipelines near their property?
What must a Buyer do within ten days after receiving the Seller's Condition of Property Disclosure?
What must a Buyer do within ten days after receiving the Seller's Condition of Property Disclosure?
What action can a Buyer take if the Seller fails to repair or correct noticed defects?
What action can a Buyer take if the Seller fails to repair or correct noticed defects?
What document is associated with the Seller's Transfer Fee Disclosure Statement?
What document is associated with the Seller's Transfer Fee Disclosure Statement?
Who is responsible for paying any transfer fees arising from the transaction?
Who is responsible for paying any transfer fees arising from the transaction?
If a Buyer wants to cancel the transaction based on the Seller's Condition of Property Disclosure, what timeframe do they have?
If a Buyer wants to cancel the transaction based on the Seller's Condition of Property Disclosure, what timeframe do they have?
What must a Buyer do if defects are found in the property as disclosed?
What must a Buyer do if defects are found in the property as disclosed?
Flashcards
Seller's right to terminate based on creditworthiness
Seller's right to terminate based on creditworthiness
The Seller can cancel the agreement if they deem the Buyer's financial situation unacceptable within a specific timeframe after receiving the credit application.
Seller's termination right for financing issues
Seller's termination right for financing issues
The Seller can cancel the agreement if the agreed terms for priority financing are not met.
Additional security measures for personal property
Additional security measures for personal property
The Buyer must sign a security agreement and file a UCC-1 financing statement on the transferred personal property to provide extra security to the Seller.
Buyer's Right to Terminate due to Financing
Buyer's Right to Terminate due to Financing
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Buyer's Escrow Completion Condition
Buyer's Escrow Completion Condition
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How to terminate the agreement?
How to terminate the agreement?
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What is a 1031 exchange?
What is a 1031 exchange?
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What happens if the parties disagree?
What happens if the parties disagree?
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What happens if the buyer breaches the agreement?
What happens if the buyer breaches the agreement?
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What documents does the seller need to provide?
What documents does the seller need to provide?
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What is a Transfer Disclosure Statement?
What is a Transfer Disclosure Statement?
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What happens if the seller refuses to fix disclosed defects?
What happens if the seller refuses to fix disclosed defects?
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What is a Seller's Transfer Fee Disclosure Statement?
What is a Seller's Transfer Fee Disclosure Statement?
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Who pays the transfer fees?
Who pays the transfer fees?
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What happens if the seller can't provide marketable title?
What happens if the seller can't provide marketable title?
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Why might there be supplemental tax bills?
Why might there be supplemental tax bills?
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What happens if the property gets damaged before closing?
What happens if the property gets damaged before closing?
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How are expenses pro-rated at closing?
How are expenses pro-rated at closing?
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Why is a Bill of Sale important in a real estate transaction?
Why is a Bill of Sale important in a real estate transaction?
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What information does the National Pipeline Mapping System (NPMS) provide?
What information does the National Pipeline Mapping System (NPMS) provide?
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Who is responsible for escrow cancellation charges?
Who is responsible for escrow cancellation charges?
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Study Notes
Purchase Agreement
- This form is used by a buyer's broker to present an offer to purchase residential property.
- The agreement details terms of the deal, including the purchase price, financing, and closing conditions.
- Items left blank are not applicable.
- The date of the agreement is filled in.
- The buyer(s) make a deposit to evidence their offer, payable to, .
- The deposit is applied to the buyer's obligations to purchase property, located in [city] , [county], California.
- The agreement includes personal property, listed in attachments.
- The purchase price is comprised of details and addenda in the agreement.
- Buyer agrees to pay a down payment, with financing details included. Loan approval for financing is a condition of the agreement.
- Buyer can assume existing loans or debts for the property.
- Financing terms, including interest rates and loan terms, are specified.
- Buyer will assume or take title to existing liens and debts, including a solar improvement lien, and interest rates as well.
- The purchase price balance is to be financed via trust deed.
- The agreement describes conditions regarding seller's disclosures, including a property disclosure statement.
- Buyer has the right to review property documents, and conditions as part of closing escrow.
- Conditions for the agreement may be reviewed by the parties, including the closing date.
- Buyer is required to inspect and review specific sections of the property or other details in the agreement.
- Buyer is eligible to terminate the agreement based on a reasonable disapproval of certain disclosures.
- If termination occurs, the parties agree to return the deposit to the relevant parties.
- The buyer is responsible for transaction costs.
- Purchase agreement conditions are outlined.
Acceptance and Performance
- The offer is revoked if not accepted in writing within specified days.
- The broker has a limited period of time to extend acceptance and performance dates.
- Buyer can terminate the agreement if they are unable to secure financing on time.
- The purchase is conditioned on buyer closing on another property.
- Any termination of the agreement requires a written notice to the other party.
Property Conditions
- Seller is required to provide various documents and reports related to the property's condition. This includes pest control reports, home inspection reports, and a certificate of occupancy, if required by local ordinances.
- The property is inspected for various issues, such as functioning sewage disposal, water quality, and other relevant conditions.
- If conditions are unacceptable, the buyer has the ability to terminate the agreement.
- The seller is responsible for delivering property condition documents to the buyer in a timely manner.
- Buyer can review documents on the property within a limited time frame, and terminate the agreement as needed.
- Notice of hazards is provided (lead, environmental hazards).
- Seller provides operating information regarding the property and its conditions.
- Sellers disclose property information concerning the condition and compliance with rules and regulations, including the existence of an HOA, and the existence of solar liens and leases.
- Buyer can review these documents, and potentially terminate the agreement, due to a reasonable disapproval.
Closing Conditions
- Escrow is established to facilitate the transaction.
- The parties provide escrow instructions during the transactions.
- Buyer is required to pay their portion of the transaction costs.
- Title will be subject to certain covenants, conditions, restrictions and easements of record.
- Taxes, assessments, insurance premiums, and other expenses will be prorated.
- A bill of sale will be executed for any personal property to be transferred.
- If a significant condition arises before closing the transaction, then it might be possible to terminate the agreement.
- Property tax bills and associated fees are paid out for the property.
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Description
This quiz covers the key elements of a residential purchase agreement, including terms such as purchase price, financing conditions, and buyer obligations. Understand the components necessary for presenting an offer to purchase property in California. Test your knowledge on the details vital for a successful real estate transaction.
