CLAUSES & CONTINGENCIES
Makes the purchase contingent upon the property’s purchase price not being above the actual market value.
What is an appraisal contingency?
Radon, septic inspection, survey, WIR and perk test are all a type of this?
What are secondary inspections?
The current Alabama REALTORS® purchase agreement states that this person is responsible for paying all expenses unless otherwise noted.
What is the buyer?
This addendum is used to modify an agent’s agreement with the buyer or seller.
What is an addendum to brokerage agreement?
Must be signed by a buyer or seller before confidential information is shared or an agency relationship is established.
What is a RECAD and office policy?
If the buyer’s existing home does not sell within the specified timeframe, the buyer may terminate the contract and recover any earnest money deposit, subject to the terms of the agreement.
What is a break clause?
Offered by the buyer to demonstrate good faith and commitment to purchasing the property.
What is earnest money?
All questions about closing costs should be referred to this person.
What is the lender?
This addendum is a request from the buyer to the seller and concerns the findings from the home inspection.
What is a repair/replace addendum?
A final inspection of the property prior to closing to ensure the conditions of the property are materially unchanged.
What is a final walk through?
A provision in a purchase agreement that automatically increases a buyer’s offer by a specified amount above a competing bona fide offer, up to a stated maximum purchase price.
What is an escalation clause?
Gets to determine what attorney or title company will close the transaction.
What is the buyer?
This person will typically pay the brokerage fees and prorated taxes.
What is the seller?
This addendum is a request from the seller to the buyer and allows the seller to remain in the home for a specified period after closing.
What is a post closing occupancy addendum?
The most preferred type of deed.
What is a general warranty deed?
States that the buyer accepts the property in its current condition, subject to any agreed exceptions.
What is an “as is” clause?
Alabama is this type of state that decares that it’s the responsibility of the buyer to determine the condition of the property.
What is a caveat emptor (or “buyer beware”) state?
This will detail the expenses paid by the buyer and seller and give the exact amount the buyer is to bring to closing in the form of a cashiers check or money order.
What is a closing disclosure?
This addendum is a request from the buyer to the seller to occupy the home prior to closing.
What is a pre-closing occupancy addendum?
An effort to ensure that the seller has good merchantable title and the property is free of all encumbrances.
What is a title search?
Gives a party the right to match another offer before the property can be sold to someone else.
What is a first right of refusal?
This section of the purchase agreement is used to clarify, modify or add to the standard language in the agreement.
What are additional provisions?
This expense is optional and insures the property against any future problems that might arise concerning outstanding liens or ownership of the property.
What is owner’s title insurance?
This addendum form is not specific and can be used for any modifications to the purchase agreement.
What is an addendum to purchase agreement?
When a seller pays for all or part of the buyers closing costs.
What is a seller concession?