Chapter 13 - property related charges Flashcards
Transfer disclosure statement TDS
A mandatory disclosure prepared by a seller and give into perspective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure
Material fact
A fact that, if known, might cause a prudent buyer or seller of real estate to make a different decision regarding what price to offer or demand for a property or whether to remain in a contract or cancel it.
As-is clause
An enforceable provision stating the buyer excepts the property without a full disclosure of known conditions. Properties are sold “as disclosed”, never “as is”.
If the disclosures are not timely made, the buyer may…
Cancel the offer on discovery of the brokers failure to disclose prior to the buyer entering into the purchase agreement with the seller
Or
Close escrow on the purchase and seek recovery of the cost to cure the untimely disclosure of known defects
Further approval contingency
A provision in an agreement calling for the further approval of an event or activity by the seller, buyer or third-party as a condition for further performance or the cancellation of the transactions by a person benefiting from the provision
Eminent domain
The right of the government to take private property for public use on payment to the owner of the property is fair market value
Aka Condemnation
Annual property operating data sheet APOD
A worksheet used when gathering income and expenses on the operation of the income producing property to analyze his suitability for investment
What are the four categories of conditions that contribute to or detract from the value of the property?
Physical condition of soil and improvements,
land-use and title conditions,
operating income and expenses,
and location hazards and surrounding area impact
