EP 16 - Real Estate Purchase Contract Part 3 - a podcast by Brian Cook And Kindra Cox

On the March 19, 2020 episode of The Brian and Kindra show, they discussed parts of the residential real estate purchase contract they use for the majority of their transactions. 

Last week we explained that Oklahoma allows real estate licensees to work with both parties as long as this is disclosed to both parties.  We also shared some of the first few items on the purchase agreement including the loan type, purchase price details and information about earnest money.  Today, we will hit on fixtures, inspections and repair requests.  

Fixtures generally will stay with the property.  What is a fixture?  We generally refer to fixtures as things that are attached to the property.  This can be confusing so our contract has a list of items included that can help us avoid some confusion. Some things are obvious such as attic and ceiling fans, the central vacuum and attachments and garage door openers.  However, other things tend to surprise both buyers and sellers.  For example, window treatments and coverings are considered fixtures (curtains) and would typically stay with the property.  The kitchen stove whether built in or under cabinet/counter appliances stays with the property, but the refrigerator, washer and dryer are considered personal items and would not necessarily be included.  Brian and Kindra also discussed how storage buildings have even been an item of concern and are frequently reserved by the seller.  It’s always important to refer to the contractual agreement for what should stay or may not stay so that neither party is surprised.  

Now, the contract will address a time period in which the buyer can complete inspections and even request for repairs from the seller.  The Time Reference Period can be negotiated on the purchase agreement.  During this time frame, a buyer can have a variety of inspections completed so they can be more comfortable with their investment.  In the Woodward, OK area, most buyers choose to have a termite and a home inspection.  From these inspections, other concerns may arise that would cause the buyer to investigate further with someone licensed in a specific field.  For example, if the home inspection informs of hail damage on the shingles, the buyer may have a professional roofer inspect the roof to determine if the entire roof appears to be bad or if only a few shingles need to be replaced.  This is also the time period in which the buyer should be securing home owners insurance.  

Once the inspections are completed, a buyer may choose to submit a Notice of Treatments, Repairs and Replacements form to the seller.  The seller can investigate cost to cure the buyer's requests and can agree to the request, modify the request or simply reject the request. Often this part of the contract feels as though it is a second negotiation.  Additionally, this is the buyer’s opportunity to withdraw from the contract and receive back their earnest money if the inspections are unsatisfactory to them or if the seller will not make corrections that will have property acceptable to them.  

There are so many details associated with the contract when buying real estate.  Be on the watch for more information next week when we cover risk of loss, abstracting and title work and home warranties!  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