CONTRACT TO BUY AND SELL REAL ESTATE (RESIDENTIAL) Section #3
This week we will go over Section # 3- Dates & Deadlines. We feel this is one of the most important sections of the entire contract. This section also falls under the Main Section heading of "Agreement".
The Dates and Deadline section of the contract (shown below)- lays out all of the critical dates in the Purchase Contract. These date & deadlines must be met in order for the transaction to move forward to a successful closing.
In Colorado, the deadline dates protect buyers ( and with some dates- the sellers ) from going to a final closing without being allowed to complete specific investigations. These dates & deadlines allow buyer's to investigate and perform their due diligence, after the contract has been signed. Your broker will help to guide you in completing the dates and deadlines table. In this market - deadlines usually are tightened up on the buyers side. This will help you, as a buyer, to compete in this sellers market. For sellers, your broker will modify dates and deadlines in a counter -offer, looking out for your best interest.
Terms: There are 3 " terms" you will see repeated in the Dates & Deadlines Table:
- "Deadline' - this is the date that the INFORMATION is due for this line item.
- "Objection" - this is the date by which a buyer must object if he has an issue with this line item . Your Real Estate Broker will prepare the appropriate form to "Object" to the line item, if you choose to object.
- "Resolution" - this is the date by which a buyer and seller must resolve any issues relating to the line item. Your Real Estate broker will assist you in completing the forms for this item as well.
Example of how dates work- One of the areas in the Dates & Deadlines table is the " Inspection Objection & Resolution, Lines 25 and 26 in the table below. You, as a buyer, go under contract on a property. You complete a Property Inspection, find eletrical and structural issues. Your broker then submits the proper forms to the seller by the "Inspection Objection Deadline". The seller refuses to fix anything, saying that the house is in perfect condition. If, by the "Resolution deadline", you have not come to a written agreement with the seller, the contract will terminate. Your broker will prepare any and all documents to terminate the contract, so that you will receive a full refund of your Earnest Money Deposit.
We hope that this has helped to simplify Section #3 of the Purchase Contract -even a little! :))! Our next edition will Discuss Section #4 - Purchase Price & Terms.
If you are not working with a broker - we can assist you in preparing a very competitive offer. We have been very successful in multiple offer situations. We look forward to helping you in your first purchase or in expanding your current portfolio.
The Dates and Deadlines table, copied from the Colorado Purchase Contract, follows. We will continue our analysis of each section below, so be sure to check back for additional information !!
|3. DATES AND DEADLINES.|
|Note: If FHA or VA loan boxes are checked in § 4.5.3 (Loan Limitations), the Appraisal deadlines do Not apply to FHA insured or VA guaranteed loans.
3.1. Applicability of Terms. Any box checked in this Contract means the corresponding provision applies. Any box, blank or line in this Contract left blank or completed with the abbreviation “N/A”, or the word “Deleted” means such provision, including any deadline, is not applicable and the corresponding provision of this Contract to which reference is made is deleted. If no box is checked in a provision that contains a selection of “None”, such provision means that “None” applies.
The abbreviation “MEC” (mutual execution of this Contract) means the date upon which both parties have signed this Contract.