EP 15 - Real Estate Purchase Contract Part 2 - a podcast by Brian Cook And Kindra Cox

On the March 12, 2020 episode of The Brian and Kindra show, they took some time to discuss some of the addenda that are associated with the residential real estate purchase contract they use for the majority of their transactions. 

 

Last week we discussed some of the documents that are included with the Oklahoma Real Estate Commission purchase agreement on residential transactions.  Today, we will begin by discussing the form that details the disclosure of brokerage duty. Often, buyers or sellers will ask if the agent works FOR the buyer or FOR the seller.  Simply put, this document allows real estate associates to work WITH both parties.  We really consider it working for the transaction.  Oklahoma licensees have specific things that must be held confidential such as the financial status of the parties they are assisting and the motivation for buying and selling.  This form also declares that the licensee will use reasonable skill and care, honesty and that they will do things the way the real estate commission requires them to.  They also must reduce offers or counter offers to written form upon request of one of the parties and all written offers must be submitted.  Additionally, if the licensee plans to provide fewer services than what is required to complete a transaction, they must disclose this is writing.  

 

Another document that is used with the contract is the Acknowledgment and Confirmation of Disclosures.  This document is very important in that it notifies the parties if the licensees working with both parties are with the same brokerage.  This document also serves as a notice to verify the buyer has received the property condition disclosures and the lead based paint disclosure if required.  Last, it tells the buyer and seller both that they will have costs associated with buying and selling and they should look for an estimate of expense from their agent.   

 

Finally, we will begin to talk a little about the actual purchase agreement.  The purchase agreement immediately tells the reader if there are any addendums to the contract.  Most commonly, a loan supplement will be attached to the contract and this part of the document will give the reader notice to look for a loan document or other type of attachment.  Other types of addendums to the contract could be a lengthy legal description or a survey.  

Next up the buyers and sellers names are filled into the contract.  It is important to have these names spelled out in the same manner as they are on their loan applications.  Now, it’s time to type in the address and the legal description of the property.  Then of course, a purchase price, earnest money and the holder of said earnest money are included.  Next, a closing date!  All of these items are written in the contract at the time of the offer and each one could be negotiated further.  

 

The column is out of space for today!!  More information about the residential contract will be shared in the weeks to come.  If all of this talk of contracts and requirements sounds intimidating, ask your Real Estate Professional to assist you as you navigate the search for your new home purchase or sale.

Further episodes of The Brian and Kindra Show

Further podcasts by Brian Cook And Kindra Cox

Website of Brian Cook And Kindra Cox