A contract for the purchase and sale of residential properties in California is a contract between a natural/legal person who sells real estate and the natural/legal person who wishes to purchase that property. The parties, buyers and sellers, agree on the terms of this Agreement in order to reach a mutually beneficial agreement. A price is set by the seller (and possibly negotiated by the buyer) and a closing date for the sale is implemented. A purchase and sale contract also contains agreements and provisions covering everything from financing options and serious money to the condition of real estate and inspections. It is the seller`s legal duty to include a disclosure informing the buyer of any questions regarding the condition of the property. Megan`s Law [§ 2079.10a(a)(3)) – All contracts for the sale of residential real estate in the State of California must contain the “Megan`s Law” clause regarding sexual predators. If a buyer does not receive any of the information mentioned below, they may have 3 days to terminate their contract (or 5 days from the date of shipment) by sending a notification to the seller or the seller`s representative (CC § 1102.3). In addition to the standard contract for the purchase of a house, other documents are required in the sale process. A title report must be ordered or obtained directly from the county registrar`s office.
Check all inspection reports and all authorizations, work orders and warranties on the ground or its devices to ensure that the house has been properly maintained. Unless they use the standard agreement, sellers need to know from the state how to provide any hazard information. Some states require a survey, so confirm if one needs to be ordered to confirm ownership lines. The original instruments and all credit information must be provided to ensure that the transaction results in its own title with no instructions other than the buyer`s new loan. There is no difference in the process of an FSBO transaction and a transaction with a brokerage representation. There is an offer that, as soon as it is accepted, begins a series of actions. A fiduciary account should be opened with money deposited in good faith. Buyers begin the inspection period, while sellers communicate all the necessary information about the property and, possibly, about hazards in the vicinity, such as waste dumps.
The buyer orders a title report to verify all ownership rights and meet all the lender`s requirements for financing the loan. Buyers provide lender authorizations and receive financing. In California, using the Universal Residential Purchase Agreement form and Joint Escrow Instructions standardizes the FSBO transaction and keeps everyone on track with the state`s legal requirements. This form lists the parties involved, the offer and any other offer and sets the deadlines for the transaction. It sets the inspection period of 17 days and gives the fiduciary service the legal language to ensure that all parties are protected. Transfer Disclosure Statement (TDS) (CC § 1102) – Specific form required by the seller of a residential property. Title Insurance Advisory Notice (§1057.6) – If the buyer does not keep a title insurance policy during a fiduciary transaction for the purchase of a residential property, he must be issued a communication with the following paragraph: Methamphetamine (§25400.28) – If a person wishes to sell a dwelling contaminated with the hazardous chemicals used in the manufacture of methamphetamines, you must first send a pending notification to the potential buyer. pending confirmation that the property is considered safe….