Anatomy of a Real Estate Transfer 2

Question 1

Purchase Agreement (L):

Answer 1

Financing Conditions. Timeframe for buyer’s procurement of financing.

Question 2

We need to know when the deadline- when is the closing supposed to happen. Is the closing going to fall through if we haven’t secured a lender or gotten financing by a certain date.

What part of the purchase agreement does this refer too?

Answer 2

Purchase Agreement (L): Financing Conditions. Timeframe for buyer’s procurement of financing.

Question 3

Purchase Agreement (M):

Answer 3

Real Estate Taxes, transfer taxes, and closing costs. Who will pay?

Question 4

___________ who is going to pay the real estate taxes, the transfer taxes, the closing costs how all of that is going to be handled.

Answer 4

Stipulate

Question 5

Purchase Agreement (n):

Answer 5

Time is of the essence.

Question 6

Time is of the essence.

Answer 6

Purchase Agreement (n)

Question 7

Arguably the shortest but the most important provision of the whole thing.

Answer 7

Purchase Agreement (n): Time is of the essence

Question 8

If time is of the essence is in the purchase agreement the seller has to

Answer 8

convey marketable title to the buyer by the closing date.

Question 9

The seller has to do all the things that they are responsible for doing and hand them over by the closing date. It is really important to be very specific about when the_________ ________ is.

Answer 9

Closing date

Question 10

You want to stipulate when the closing is and where it occurs. If the seller cannot convey the ________ __________ by the closing date the buyer can rescind and get the earnest money deposit back. That becomes the really big issue.

Answer 10

marketable title

Question 11

If the seller cannot convey the marketable title by the closing date the buyer can _________ and get the __________ __________ _________ back.

Answer 11

rescind
earnest money deposit

Question 12

Arguably the most important provision in the whole thing sounds super basic, super boiler plate choose your word. The buyer wants this to be in there.

Answer 12

Purchase Agreement (n): Time is of the essence

Question 13

What does Time is of the Essence mean?

Answer 13

Time is of the essence means that the seller must convey the marketable title to the buyer at the closing date.

Question 14

By the closing date. What happens if there is no time is of the essence provision? If there is no time of the essence, they have a

Answer 14

reasonable time pose-closing

Question 15

Case coming up Conklin – case where somebody says they own it but there is no ________ _ _ _ _________ so a reasonable time post-closing included time for the lawsuit to go to court to prove that the seller owned the land by adverse possession and that could take a long time.

Answer 15

time is of the essence

Question 16

Put time is of the essence in there because we want the seller to convey marketable title by the closing date. True or False

Answer 16

True

Question 17

Purchase Agreement (o):

Answer 17

Inspections by buyer and permission for entry

Question 18

Purchase Agreement (o): refers to what?

Answer 18

refers to all of the reasons you might need to re-renter the property after you initially view it.

Question 19

sight visit and potentially to discover if there is an AP or to remove one.

Answer 19

Purchase Agreement (o):
refers to all of the reasons you might need to re-renter the property after you initially view it.

Question 20

Inspections – home inspection – radon gas – sight visit to make sure nobody is there.

Answer 20

Purchase Agreement (o):
refers to all of the reasons you might need to re-renter the property after you initially view it.

Question 21

Real estate professionals that need to go there: appraiser, surveyor, well and septic tests for rural property.

Answer 21

Purchase Agreement (o):
refers to all of the reasons you might need to re-renter the property after you initially view it.

Question 22

Purchase Agreement (p):

Answer 22

Cleanliness of Property

Question 23

Always do your walk through really close to the time of the closing because you want to make sure that there aren’t any issues. What does this refer to?

Answer 23

Cleanliness of Property

Question 24

Purchase Agreement (q):

Answer 24

Survey

Question 25

We want what type of survey?

Answer 25

Certified Boundary Survey

Question 26

_____________ _________ ________ means that you have physical stakes / flags in the ground and if you tied a strong to each one you would be able to see the four corners of the land and know exactly where the boundaries are.

Answer 26

Certified Boundary Survey

Question 27

You want it to be certified to make sure that the surveyor did a good job, you might assume well they were licensed, and I paid them. They mess up all of the time and when they screw up you can

Answer 27

sue them because when they certify that they have done a good job and that they are right, and they are wrong they have to compensate you for your loss.

Question 28

If you were to look at your _________ survey that is not certified to you and if it is wrong, you cannot sue them you can only sue the person that is promising you.

Answer 28

seller's

Question 29

A typical buyer needs a _________ ___________ ____________.

Answer 29

Certified Boundary Survey

Question 30

If you represent a real estate developer you want what type of survey?

Answer 30

Alta Survey

Question 31

What is the best type of survey?

Answer 31

ALTA

Question 32

Boundary line dispute and I have an ALTA I am going to win because it is the most ____________.

Answer 32

detailed.

Question 33

Purchase Agreement (r):

Answer 33

Risk of Loss. Insurance Issues

Question 34

In a majority of states, the risk of loss is on the buyer from the moment that they:

Answer 34

sign the purchase agreement.

Question 35

In a _________ _____ ___________- the risk of loss is on the buyer from the moment that they sign the purchase agreement. That is weird because the seller is living there. We don’t all treat our stuff the same way.

Answer 35

majority of states

Question 36

In a majority of jurisdictions, the risk of loss is on the buyer the moment that they sign the purchase agreement. Because of this the ________ should _________ _________. Insurance goes into effect at the _______ __________.

Answer 36

buyer procure insurance closing date

Question 37

Purchase Agreement (s):

Answer 37

Warranties

Question 38

Buying a house that has been previously constructed. A used house. A preexisting structure but it might have a brand-new roof or hot water heater and it might come with a ________. Find out if the __________ exist so you can have the roofers come repair at no cost to you.

Answer 38

Warranty Warranties

Question 39

Purchase Agreement (t):

Answer 39

Well and septic

Question 40

Purchase agreement (u):

Answer 40

Appraisal

Question 41

The _______ is for the benefit of the lender. The amount of the __________ seems to always come in the exact amount of the loan no matter how much the house is actually worth. I bought some houses that I thought were a pretty good deal and were worth a whole lot more than what my loan amount was, but it amazingly always matches up.

Answer 41

Appraisal Appraisal

Question 42

Purchase Agreement (v):

Answer 42

Statement of Assessments (condos homeowner's association fees, etc.)

Question 43

It is important that you find out how much your condominium owner’s association fees are because that is going to impact the amount of money that you can afford to pay for your mortgage payment. Because sometimes those fees will be separate and apart from your HOA. – flowers and light at the front is what payment is for. Florida – I Paid 2500 a year and I had swimming pool, tennis courts, volleyball courts, and a clubhouse paying more money in fees for amenities, but it impacts the monthly basis for the mortgage. Know fees to make sure you can afford to pay all of the things. These refers to what part of the purchase agreement?

Answer 43

Purchase Agreement (v): Statement of Assessments

Question 44

Purchase Agreement: (w) (x) (y)

Answer 44

(w) Merger of Agreements. (x) Plurals / Pronouns (y) Invalidity of one provision does not equal invalidity of whole.

Question 45

Purchase Agreement: (w) Merger of Agreements. (x) Plurals / Pronouns (y) Invalidity of one provision does not equal invalidity of whole. All three are standard boiler plate contract language.

Answer 45

YES

Question 46

Purchase Agreement (z):

Answer 46

Signature block / legal document secure the advice of counsel before signing.

Question 47

Representing a client that is a ________ _________ the signature block is exceptionally important.

Answer 47

corporate entity

Question 48

It needs to be clear that the corporate entity is the buyer because that is who is going to have __________ ____________.

Answer 48

potential liability

Question 49

_________: Tiger Development Corporation ___: Magglio Ordonez Magglio Ordonez ____: President

Answer 49

BUYER: By: Its:

Question 50

In a signature block it is important to type out the full name and important to indicate in what ___________ they _________ in the _____________.

Answer 50

capacity serve corporation

Question 51

The board of directors is a group of people, and they have different roles. not everybody has the same abilities on the board. A document will stipulate who is supposed to do what and that is the __________.

Answer 51

bylaws

Question 52

Regarding the signature block: In this organization the president and secretary are authorized to sign legal documents on behalf of the corporation, and they are both unavailable on the day of the closing. We find out in advance, and we fix that by doing it in house as a corporation with minimal guidance from our attorney. What do we use?

Answer 52

Corporate Resolution

Question 53

__________ ___________: whereas tiger development corporation is borrowing 7M from bank whereas 7M will be used to construct 33 units of affordable housing whereas typically the secretary and president sign pursuant to the bylaws whereas they are unavailable at such and such date and time whereas at a duly called meeting with the board of directors where a corm was present and voting throughout now therefore let it be resolved that sally jones the treasurer can sign on behalf of the organization. Tell the story of here is what we are trying to do they are not available here is the representative we are appointing to do it and we are authorizing them to sign the paper for us and the secretary will sign it and when the treasurer shows up at the closing nobody is freaked out.

Answer 53

Corporate Resolution

Question 54

So, you have your signature block and you have finished talking about the purchase agreement, the buyer has gotten financing and they have convinced the lender that they are in a sufficient position to pay back the money, a_______ ___________ has been done, the bank is satisfied that the seller has good title, any defects are cured by the closing. One of the most valuable parts of this material is ______ ___________.

Answer 54

title analysis due diligence

Question 55

26 parts A-Z of a ___________ __________.

Answer 55

purchase agreement

Question 56

Part 3 of The Anatomy of a Real Estate Transfer. ___________ secures financing (reviews __________ and conducts a _______ _________.

Answer 56

Buyer appraisal credit check

Question 57

Part 4 of The Anatomy of a Real Estate Transfer. ________ _________ done. (bank must be satisfied, unsatisfactory ______ must be ______.

Answer 57

title analysis defects cured