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Terms in this set (22)
Offer to Purchase Contract
Standard Form 2T used only for resales.
Due Diligence Fee
Check is made to the seller. Gives the buyer the opportunity to look at the home. Seller gets the check as of the effective date of the contract. Non refundable. At closing, the buyer gets a credit and the seller gets a debit for the total fee. Negotiable fee.
Earnest Money Deposit
Shows a level of interest on behalf of the buyer; negotiated amount. Credits back to the buyer at closing. Check is made out to escrow agent. No debit to seller at closing because they never take possession of it.
Land Installment Contract
Drafted by attorneys; unilateral contract; seller maintains legal title, buyer gets equity title; seller transfers title when full price is paid; buyer pays taxes and insurance before possession of legal title.
Optionor gives optionee irrevocable right to buy property at a fixed rate for a stated period of time. Drafted by attorneys; free to look period; mandatory compensation that CAN be credited to the purchase price; used for commercial transactions; seller cannot sell or accept back up offers during this time; buyer must notify in writing of decision before contract end date or they lose money.
Expression of intent by the offered to be bound by the terms of the offer; must be in writing if the contract pertains to real property. Acceptance must be communicated to the opposite party to create a contract.
An offer submitted to the property owner with knowledge that the owner is already under contract; secondary offer
A provision in a contract that requires a certain act to be done or a certain event to occur before the contract becomes binding; condition of the contract.
Buyers investigative process of having experts inspect the property, examine title, and review any leases to determine if the property meets the buyers needs and if the buyer wishes to proceed with the purchase. During this period the buyer can terminate the purchase contract for any reason or no reason. If fee is paid and buyer walks, fee is non refundable. Also a licensees affirmative duty to discover and disclose any material facts about the property in question.
Rule of law stating that once written acceptance is placed in control of the mailing service, and out of the control of the offeree, it is considered accepted- not when the acceptance is actually received by the Offeror.
Promise by one party to act or perform in a certain manner if the other party agrees to act or perform as requested; shows an intention to enter into a contract.
Person receiving the offer
Person that makes the offer
An agreement between the property owner and the possible buyer, secured by the payment of an option fee, to buy or not buy property within a specific time period at terms that have been negotiated in the underlying contract; also called option to purchase or option contract
Possible buyer in option contract
Property owner in option contract
A provision giving a person the first right to purchase real property; mist often found in commercial leases.
Right of first opportunity to purchase
The right of a party to have the first opportunity to purchase or lease real estate for a designated price, if the owner ever decides to sell or lease; if the holder of the right does not opt to purchase, the owner may sell to a third party within a specified time. If sale to a third party does not occur, the right is still valid and process restarts.
Right of first refusal
The right of a person to have the first opportunity to either purchase or lease real property, if the owner ever decides to sell or lease; no terms are negotiated.
Uniform Electronic Transaction Act (UETA)
NC version of the federal e-sign legislation that validates electronic contracts, documents and signatures.
Contract of Sale- In NC, Offer to Purchase or Standard Form 2-T
Most important document in the sale of real estate. Issues to be addressed are price, terms, legal descriptions of the property, kind and condition of the title, form of deed the seller will deliver, kind of title evidence required, who will provide title evidence, and how defects in the title, is any, will be eliminated.
Termination of Offers
If the offeree rejects the offer or creates a couteroffer; if the offeree fails to accept within the prescribed time in the offer; within reasonable time if the time of acceptance is not prescribed; prior to acceptance, if the offeror communicated a revocation of the offer; death of the offeror or offeree
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