RESIDENTIAL FORMS 2015 PURCHASE AGREEMENT IAR FORMS The IAR forms Prepared by Attorneys as required by Ind Sup Ct In existence for over 20 years Reason for everything in the form Up to date while keeping changes to a minimum ID: 440268
Download Presentation The PPT/PDF document "IAR Legal Affairs presents" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
IAR Legal Affairs presents:RESIDENTIAL FORMS
2015 PURCHASE AGREEMENTSlide2
IAR FORMS
The IAR forms:Prepared by Attorneys as required by Ind. Sup. Ct.In existence for over 20 yearsReason for everything in the form
Up to date while keeping changes to a minimum
New forms introduced if necessary
Consistent throughout the entire stateCopyrighted and restricted to use only by members of IARSlide3
IAR FORMS
MAIN GOALS OF IAR FORMS:Provide a legally enforceable contract for Buyer and SellerKeep a real estate transaction together through closing
Be as unbiased as possible
Provide legal protections for IAR members (Brokers)
Keep current regarding Federal and State laws and regulations, Code of Ethics, license laws, case law, hotline calls, feedback and suggestions from membersSlide4
PURCHASE AGREEMENT MAIN CONSIDERATIONS
Property: LINES 11-23
together with any existing permanent improvements and fixtures attached (unless leased or excluded), including, but not limited to, electrical and/or gas fixtures, home heating fuel, heating and central air-conditioning equipment and all attachments thereto, built-in kitchen equipment, sump pumps, water softener, water purifier, gas grills, fireplace inserts, gas logs and grates, central vacuum equipment, window shades/blinds, curtain rods, drapery poles and fixtures, ceiling fans and light fixtures, towel racks and bars, storm doors, windows, awnings, TV antennas, wall mounts, satellite dishes and controls, storage barns, all landscaping, mailbox, garage door opener with controls AND THE FOLLOWING: _____________________________________________________________________________
EXCLUDES THE FOLLOWING: _____________________________________________________.
BUYER’S BROKER - MAKE SURE TO REVIEW ALL ITEMS WITH THE BUYER AND INCLUDE ANY THAT AREN’T LISTED IF NECESSARY.
SELLER’S BROKER – MAKE SURE TO REVIEW THIS AND COUNTER OUT ANYTHING NOT STAYING WITH PROPERTY. Slide5
PURCHASE AGREEMENT MAIN CONSIDERATIONS
24
The terms of this Agreement will determine what items are included/excluded, not the Seller's Disclosure
25
Form, multiple listing service or other promotional materials. All items sold shall be fully paid for by Seller
26 at time of closing the transaction. Buyer should verify total square footage, land, room dimensions or
community
amenities if material.
SELLER’S DISCLOSURE FORM DOES NOT DETERMINE WHAT STAYS WITH THE PROPERTY AND WHAT DOES NOT – ONLY THE CONTRACT WILL DO THAT.
Property: LINES 24-27Slide6
PURCHASE AGREEMENT MAIN CONSIDERATIONS
EITHER PARTY MAY TERMINATE IF THE APPRAISAL PRICE IS LESS THAN THE AGREED UPON PURCHASE PRICE.
Price: LINES 29-32Slide7
PURCHASE AGREEMENT MAIN CONSIDERATIONS
EARNEST MONEY IS TO BE SUBMITTED WITH PURCHASE AGREEMENT. ANY OTHER TIME NEEDS TO BE BY AGREEMENT OF THE PARTIES.
HOWEVER, AN ACCEPTED PURCHASE AGREEMENT IS AN ENFORCEABLE CONTRACT EVEN IF EARNEST MONEY IS NOT SUBMITTED AS AGREED. SELLER MAY TERMINATE
.
2 DAYS TO DEPOSIT EARNEST MONEY IS A DEADLINE
FOR THE BROKER TO DEPOSIT MONEY RECEIVED.
EARNEST MONEY: LINES 34-41Slide8
PURCHASE AGREEMENT MAIN CONSIDERATIONS
CASH MEANS CASH ON HAND – NOT GETTING A LINE OF CREDIT OR REFINANCING.
NO OBLIGATION FOR BUYER TO TRY MORE THAN ONE LENDER.
METHOD OF PAYMENT: LINES 60-76Slide9
PURCHASE AGREEMENT MAIN CONSIDERATIONS
81 No more than days after acceptance of the
82 Agreement shall be allowed for obtaining loan approval or mortgage assumption approval. If
an approval
is not
83 obtained within the time specified above, this Agreement
may
terminate unless an extension of time for this
84 purpose is mutually agreed to in writing.
APPROVAL IS NOT THE SAME AS PRE-APPROVAL.
DOESN’T TERMINATE AUTOMATICALLY.
TIME FOR OBTAINING FINANCING: LINES 81-84Slide10
PURCHASE AGREEMENT MAIN CONSIDERATIONS
THE SECOND LINE CAN BE LEFT BLANK.
IF FILLING IN SECOND LINE, IT MUST BE SOMETHING DETERMINABLE.
LINE 91 WAS ADDED FOR NEW CLOSING PROCEDURES.
CLOSING: LINES 87-94Slide11
PURCHASE AGREEMENT MAIN CONSIDERATIONS
ONLY USED IF THERE IS AN EXISTING ACCEPTED OFFER ON THE BUYER’S PROPERTY.
SCHEDULED TO CLOSE BY DATE DOES NOT CREATE ANY DEADLINES IN THIS CONTRACT.
CLOSING: LINES 97-99Slide12
PURCHASE AGREEMENT MAIN CONSIDERATIONS
ENTITLED TO POSSESSION DAYS ARE CHARGED AT CLOSING WHETHER SELLER USES THE DAYS OR NOT.
SECOND LINES COMES INTO PLAY IF SELLER FAILS TO TURN OVER POSSESSION ON TIME. BUYER COULD ENFORCE PROVISION IN COURT.
POSSESSION: LINES 112-116Slide13
PURCHASE AGREEMENT MAIN CONSIDERATIONS
SURVEY
: Buyer shall receive a (
Check one
) □ SURVEYOR LOCATION REPORT, which is a survey where corner markers are not set; □ BOUNDARY SURVEY
, which is a survey where corner markers of the Property are set prior to closing
;
□
WAIVED
, no survey unless required by lender; at (Check one) □
Buyer's expense (included in allowance, if provided
)□ Seller's expense □ Shared equally. The survey shall (1) be received prior to closing and certified as of a current date, (2) be reasonably satisfactory to Buyer, (3) show the location of all improvements and easements, and (4) show the flood zone designation of the Property. If Buyer waives the right to conduct a survey, the Seller, the Listing and Selling Brokers, and all licensees associated with Brokers are released from any and all liability relating to any issues that could have been discovered by a survey. This release shall survive the closing.
DESIGNATE THE TYPE OF SURVEY BUYER WANTS TO RECEIVE.
DESIGNATE WHICH PARTY WILL PAY FOR SURVEY.
PROTECTION FOR BROKER IN CASE BUYER WAIVES THEIR RIGHT FOR A SURVEY.
SURVEY: LINES 128-136Slide14
PURCHASE AGREEMENT MAIN CONSIDERATIONS
FLOOD AREA/OTHER
: If the property is located in a flood plain, Buyer may be required to carry flood insurance at Buyer's expense. Revised flood maps and changes to Federal law may substantially increase future flood insurance premiums or require insurance for formerly exempt properties. Buyer should consult with one or more flood insurance agents regarding the need for flood insurance and possible premium increases. Buyer
□ may □ may not
terminate this Agreement if the Property requires flood insurance. Buyer
□ may □ may not
terminate this Agreement if the Property is subject to building or use limitations by reason of the location, which materially interfere with Buyer's intended use of the Property.
EXPLAINS FLOOD INSURANCE MAY BE REQUIRED BASED ON NEW MAPS AND FEDERAL LAW THAT PREMIUMS MAY INCREASE.
BUYER MAY NEGOTIATE ABILITY TO TERMINATE CONTRACT IF FLOOD INSURANCE IS REQUIRED OR DUE TO USE LIMITATIONS.
FLOOD AREA/OTHER: LINES 138-144Slide15
PURCHASE AGREEMENT MAIN CONSIDERATIONS
ADDITIONAL TIME DOES NOT KICK IN UNLESS INITIAL REPORT REVEALS SOMETHING AND BUYER IS HAVING ADDITIONAL INSPECTION/TESTING.
BUYER SHOULD NOTIFY SELLER THAT ADDITIONAL TIME IS BEING USED.
INSPECTIONS: LINES 197-199Slide16
PURCHASE AGREEMENT MAIN CONSIDERATIONS
F
AILURE TO RESPOND = ACCEPTANCE OF PROPERTY. SOLVED PROBLEM OF WHAT HAPPENS IF EITHER PARTY DOESN’T GIVE A RESPONSE.
WHAT IS REASONABLE?
INSPECTIONS: LINES 203-207Slide17
PURCHASE AGREEMENT MAIN CONSIDERATIONS
BUYER MAY TERMINATE ONLY IF SELLER REFUSES TO REMEDY AN ACTUAL DEFECT.
INSPECTIONS: LINES 211-217Slide18
PURCHASE AGREEMENT MAIN CONSIDERATIONS
ESTABLISHES IF THERE WILL BE A HOME WARRANTY, WHO WILL PAY AND WHO WILL ORDER IT.
DISCLOSURE THAT BROKER MAY RECEIVE A FEE FOR IT.
PROTECTION FOR BROKERS.
LIMITED HOME WARRANTY PROGRAM: LINES 222-230Slide19
PURCHASE AGREEMENT MAIN CONSIDERATIONS
ACKNOWLEDGEMENT OF DISCLOSURES RECEIVED OR NOT.
ACCORDING TO LAW, AGREEMENT NOT ENFORCEABLE ON BUYER UNTIL BUYER HAS RECEIVED SELLER’S DISCLOSURE.
DISCLOSURES: LINES 232-236Slide20
PURCHASE AGREEMENT MAIN CONSIDERATIONS
ESTABLISHES TYPE OF TITLE POLICY BUYER WANTS.
SELLER MUST CONVEY TITLE FREE AND CLEAR OF ANY ENCUMBRANCES.
TITLE INSURANCE: LINES 238-244Slide21
PURCHASE AGREEMENT MAIN CONSIDERATIONS
ESTABLISHES WHO WILL PAY FOR THE TITLE INSURANCES.
TITLE INSURANCE: LINES 246-253Slide22
PURCHASE AGREEMENT MAIN CONSIDERATIONS
RESPA AND IND LAW SAY THAT SELLER CANNOT MAKE THE SELECTION OF THE TITLE INS PROVIDER A CONDITION PRECEDENT TO THE SALE OF THE PROPERTY.
TITLE INSURANCE: LINES 254-261Slide23
PURCHASE AGREEMENT MAIN CONSIDERATIONS
□ 1. Buyer will assume and pay all taxes on the Property beginning with the taxes due and payable on __________, _____ , and all taxes due thereafter. At or before closing, Seller shall pay all taxes for the Property payable before that date.
□ 2. All taxes that have accrued for any
prior calendar year
that remain unpaid shall be paid by Seller either to the County Treasurer and/or the Buyer in the form of a credit at closing. All taxes that have accrued for the
current calendar year
shall be prorated on a calendar-year basis as of the day immediately prior to the Closing Date.
For purposes of paragraph 1 and 2
: For the purpose of determining the credit amount for accrued but unpaid taxes, taxes shall be assumed to be the same as the most recent year when taxes were billed based upon certified tax rates. This shall be a final settlement.
□ 3.
FOR RECENT CONSTRUCTION OR OTHER TAX SITUATIONS
. Seller will give a tax credit of $______________________________ to Buyer at closing. This shall be a final settlement.WARNING: THE SUCCEEDING YEAR TAX BILL FOR RECENTLY CONSTRUCTED HOMES OR FOLLOWING REASSESSMENT PERIODS MAY GREATLY EXCEED THE LAST TAX BILL AVAILABLE TO THE CLOSING AGENT.Buyer acknowledges Seller's tax exemptions and/or credits may not be reflected on future tax bills.
Buyer may apply for current-year exemptions/credits at or after closing.
#1 NEXT INSTALLMENT, #2 PRORATION #3 CREDIT/OTHER.
WARNING FOR BUYERS ABOUT TAX BILLS THAT MAY CHANGE DUE TO EXEMPTIONS, ETC.
TAXES: LINES 262-284Slide24
PURCHASE AGREEMENT MAIN CONSIDERATIONS
ALL TIMES EXPIRE AT 11:59 PM UNLESS OTHERWISE AGREED TO.
TIME: LINES 296-298Slide25
PURCHASE AGREEMENT MAIN CONSIDERATIONS
RECENT LAW SAYS DOCS MUST BE DELIVERED BY SELLER TO BUYER NO LATER THAN 10 DAYS BEFORE CLOSING.
HOMEOWNERS ASSOCIATION/CONDOMINIUM ASSOCIATION: LINES 303-313Slide26
PURCHASE AGREEMENT MAIN CONSIDERATIONS
WEBSITES FOR BUYERS TO CHECK REGARDING METH LABS AND SEX OFFENDERS PRIOR TO ENTERING P.A.
PROTECTION FOR BROKER IN NOT HAVING TO RESEARCH THOSE ITEMS.
LINES 330-336Slide27
PURCHASE AGREEMENT MAIN CONSIDERATIONS
PROVIDES PROTECTION FOR BROKER IN MAKING REFERRALS TO OTHER PROFESSIONALS.
LINES 361-366Slide28
PURCHASE AGREEMENT MAIN CONSIDERATIONS
MORE PROTECTION FOR BROKER CONCERNING DISCLOSED LIMITED AGENCY.
ACKNOWLEDGEMENTS: LINES 404-408