REALTORS guide to the Greater Hartford Association of

REALTORS® guide to the Greater Hartford Association of REALTORS Purchase Contract

Be sure to list correctly the full name of ALL Buyers and ALL Sellers who are party to the contract, and their legal addresses. The Real Estate Purchase Contract If applicable, fill in using these lines OR check the box and use the Property Inclusions/Exclusions Rider (Click on form to see sample)

This line represents the TOTAL PURCHASE PRICE; the number that The Real is. Estate Purchase your commission based upon, per MLS unilateral offer of compensation (unless otherwise negotiated in writing) Contract, Cont’d 1 st deposit 2 nd deposit, don’t forget this must be a cashier’s or certified check. Used only if seller is financing any part of sale May require Lender Approval Balance of downpayment Amount financed; the mortgage amount This line is the sum of (a-f), and represents the total funds brought in by Buyer in the form of cash and/or mortgage. It is NOT necessarily the total purchase price! It will be higher than the total purchase price if the buyer is getting money back at closing. This situation only occurs when the Buyer is receiving all or some of their deposit back at closing. Not to be confused with Seller concession for closing costs.

This is the date whereby Buyer must provide a written mortgage commitment to the Seller or put in writing that they don’t have a commitment. This is an IMPORTANT date! Beware that not handling this properly may put the Buyer’s deposit in jeopardy. THE FOLLOWING MORTGAGE CONTINGENCY IS NOT APPLICABLE UNLESS FILLED IN The Real Estate Purchase Contract, Cont’d 5. Mortgage Contingency. Buyer will make prompt and diligent efforts to obtain a written The commitment total amount being loan (“Mortgage”) Can be from written number or lender on or before ____ for a mortgage a bankas or a other institutional (“Mortgage will provide Seller Broker, not later than the Mortgage financed; the. Contingency mortgage. Date”). Buyer“prevailing” or and “market” rate Contingency with a copy of any written commitment for a Mortgage obtained by Buyer will pay amount. Para. Date, 4(c, d, e) all application fees, points (not to exceed_____), and other charges in accordance with the policies established by the applicable lender. The Mortgage must be on the following terms: (a) Amount $ (b) Maximum initial interest rate: % per annum (c) Minimum term: years (d) Types of mortgage: CHECK THE FOLLOWING AS APPLICABLE: Conventional Fixed Rate CHFA FHA Other: ___________________ Conventional Rateyou VA (Sellerindicate will pay termite inspection charges if required by the Typically, this. Variable is where would applicable lender. ) that Buyer is getting down payment Buyer Initial Date or any other Seller Initial assistance, i. e. House Hartford financial program that requires approval. Copyright © 1995 Greater Hartford Association of REALTORS®, Inc. All rights reserved. Revised 6/10. Date (GHAR Form #A-1) End of page 1 of the purchase contract

The 1 st box should be checked if the Buyer is not relying on selling another property to close. If checked, your Buyer’s offer may be considered stronger to a Seller. The 2 nd box indicates to the Seller that the Buyer has a property to sell. One of two riders should be used if checked: 1) The HUBBARD Property Contingency Rider if the Buyer does not have a contract on currently owned property. The Real Estate Purchase Contract, page 2 2) The UNDER CONTRACT Property Contingency Rider if the Buyer has a contract on currently owned property. 3) If property contingencies have been met, use the REMOVAL OF PROPERTY CONTINGENCY Form to strengthen the contract 4) Use the NOTICE OF TERMINATION AND RELEASE OF DEPOSIT to give written notice of termination. (Click on form to see a sample) (Click on forms to see sample) This is a 7 day period that gives the Seller an opportunity to terminate the contract in writing if they have not received a satisfactory mortgage approval.

Please use with GREAT caution! Generally used with new construction and lender-owned properties. The Real Estate Purchase Contract, page 2 Transfer of Title is most commonly checked. This is the proper place to include Seller concession information as well as any other issues that Buyer or Seller may want to include.

The Real. The. Estate Purchase Contract, page 2 Seller has an obligation to convey a clean title to the property. 10. Title. Seller will transfer fee simple title to the Property to Buyer by a Connecticut form of Warranty Deed, (or Connecticut Form of Fiduciary Deed if Seller is an Executor, Administrator, Conservator or Trustee), subject to (a) any and all provisions of any ordinance, municipal regulation, or public or private law; declarations, restrictions, covenants, and easements of record; any state of facts an accurate survey or personal inspection of the Property might reveal; provided that none of the above interfere with the present location of any building now located on the Property, prevent the use of the Property as a residence, or render title to the Property unmarketable; (b) current taxes and municipal The agentwhich should have the ability to under this Contract; and (d) the assessments; (c) any mortgage Buyer has agreed to assume to Buyers orwhich Sellers following additional explain liens and encumbrances shallwhat be assumed and paid by Buyer in addition to the purchase price (NOT APPLICABLE UNLESS FILLED the closing adjustments may IN): (sewer and water liens will not be assumed by buyer unless specifically stated below) Buyer Initial include, but attorneys will figure out the details just before Seller the closing. Date Initial Date 11. Adjustments for taxes, association fees, rents, water, fire taxes, sewer, interest, fuel, condominium fees, municipal assessments, and other charges will be made as of the date of closing in accordance with the custom of the Bar Association for the county where the Property is located.

Be aware that while this language allows for the deposit to be turned over to the Seller, a Brokerage firm generally will not do it without mutual agreement in writing by the parties or by court order. The Real Estate Purchase Contract, page 3 12. Default; Liquidated Damages; Remedies. If Buyer defaults under this Contract and Seller is not in default, Buyer’s deposits shall be paid over to and retained by Seller as liquidated damages and both parties The contract should enough shall be relieved of furthercontain liability under this Contract, except to the extent of Buyer’s obligations under written documentation to make sure paragraph 17. thatshall thisbecontract willand all that whatdefaults has been agreed is Buyer is. This If Seller under this Contracttoand not in means default, Buyer entitled to any remedies by lawany and riders. equity including, but not limited to, death specific performance and recovery of survive the or incapacity of clear. Thisprovided includes amounts spent for mortgage application, appraisal, title search, and tests or inspections. If a legal action is anyprevailing partiesparty, to this transaction. brought to enforce any provision of the Contract, the including a broker who The is made party to deposit guarantees the to court costs and such action and who has not significantly contributed to the default, shall be entitled attorneys’ fees. performance by the Buyers, and the 13. Complete Agreement. This Contract contains the entire real agreement between Buyer and Seller physical estate guarantees the concerning this transaction, and supersedes any and all previous written or oral agreements concerning the performance by the Sellers. Property. 14. Non-assignability. Buyer shall not assign its rights under this Contract without the written consent of the Seller. 15. Survival. This Contract shall be binding upon and inure to the benefit of the respective personal representatives, heirs, successors and assigns of Buyer and Seller. 16. Equal Housing Rights. Buyer acknowledges that he/she is aware of his/her right to be shown any home within his/her price range in any area specified by Buyer and which is available to the undersigned REALTOR®.

Buyer pays for all inspections, except under the Septic Rider, the Seller is obligated to pump a septic system, if required. The Real Estate Purchase Contract, page 3 17. Home, Pest and Environmental Inspection/Tests. Buyer acknowledges that Buyer has had the opportunity to make a full and complete inspection of the Property and other improvements, to the extent desired by Buyer. If Buyer has elected to make a less than Buyer can request that items be thorough inspection, Buyer waives any right to object to any defects in the Property and other addressed subject to negotiation improvements that would have been disclosed by a full and complete inspection. Buyer has parties. However, the right to have the lead inspection or between risk assessment described belowthe (unless waived) and the other inspections checked below performed on the Property. Buyer must arrange and pay Seller cannot be forced to fix for all inspections including any additional inspections recommended by the anything! Also, Sellers can be inspector (except if the mortgage described in paragraph 5 is VA, Seller will pay termite inspection charges to reassured that none of these the extent required by the applicable lender). Buyer must give Seller written notice of any testsset willforth damage their property. inspection that does not meet the standards below together with a copy of the relevant pages of the inspection report, on or before calendar days after the date that this Contract is fully executed (Inspection Contingency Date). If Buyer does not give Seller such notice, Seller shall have no responsibility or obligation concerning any condition to which this paragraph 17 applies. At Buyer’s sole cost and expense, Buyer shall restore the Property to substantially the same condition it was in immediately before any inspections.

If Buyer and Seller can’t come to an agreement, then the Buyer has the option to terminate the agreement by giving written notice to terminate before the end of the 3 rd day after the inspection contingency date. The Real Estate Purchase Contract, page 3 As throughout the terms of this agreement, the Buyer and Seller can mutually agree to extend dates or amend this contract, but it MUST be in writing. This box only applies to homes built prior to 1978. In homes built before 1978, a Disclosure of Information on Lead-Based Paint must be attached to, but not be made part of the contract. These 3 days are added to the original “Inspection Contingency Date” to get to the deadline by which the Buyer’s termination notice must be given. For example, if 10 days is written for the Inspection Contingency Date, the Buyer’s termination notice must be given by the 13 th day.

The prudent thing to do if you are a Buyer agent is to stress the importance of these inspections and give the Buyer the option to choose the ones that are important to them. The Real Estate Purchase Contract, page 3 [Applicable Only If Checked] The Buyer is not mandated to do A HOME INSPECTION performed these by an engineer licensed by the State of inspections. However, if the Connecticut or a home inspection service licensed by the State ofto. Connecticut Buyer chooses waive an indicating that the buildings and other improvements located on the Property are structurally inspection, have them sign the sound and that the mechanical, electrical and plumbing systems of any of the buildings Waiver of Inspection Form. are in good repair. A TERMITE OR WOOD DESTROYING INSECT INSPECTION performed by a licensed exterminator or inspection service licensed by the State of Connecticut and indicating that the buildings on the Property are not infested by termites or wood-boring insects and that the buildings on the Property are not damaged as a result of such infestation. OTHER ENVIRONMENTAL INSPECTIONS/TESTS of the buildings located on the Property for asbestos; radon; mold; and (other), performed by a licensed environmental inspector or inspection service licensed by the State of Connecticut, the results of which are satisfactory to Buyer, provided that Buyer’s determination is reasonable in view of the written report of any inspection and/or test.

All agents should be familiar with each and every one of these riders to know their meaning and availability. Per PA 95 -311, a property disclosure report is not required for new homes, estate sales, bankowned properties, and limited other situations. The Real Estate Purchase Contract, page 4 The report must be filled out by the Seller, NOT the agent. All questions are to be filled out. This form must be attached to the contract, but not be made part of it. If the Buyers have any interest in knowing about hazardous waste sites within a town or community, they can check with the Town Clerk. This does not relieve the agent or Seller from responsibility to disclose if they know information about such matters.

In order to be recognized as being entitled to commission, agencies must have valid Listing agreements, valid Buyer Representation agreements, or Real Estate Agency Disclosure Notice (Unrepresented Party forms) in place prior to writing this offer. If an Unrepresented Party form is used, it needs to be attached to the contract, but not be made part of it. The Real Estate Purchase Contract, page 4 22. Broker(s). Buyer and Seller recognize (firm name) and (firm name) as the sole broker(s) in this transaction. When signed by Buyer and Seller this is intended to be a legally binding contract. If and Seller are represented either party has any questions about any aspect Ifof. Buyer this transaction, he/she should by the same agency, a Dual Agency consult with an attorney before signing this Contract. BUYER Date: Consent Agreement or Designated Agency Agreement must be made SELLER part of this contract. Be sure that ALL Buyers and ALL Date: this contract. Sellers are signing Copyright © 1995 Greater Hartford Association of REALTORS®, Inc. All rights reserved. Revised 6/2010. (GHAR Form #A-4) End of page 4 (final page) of the purchase contract