Identify the Primary and Secondary Provisions of a Sales Contract

Question 1

List the Sale Contract Primary Provisions

Answer 1

Parties, consideration, legal description, price and terms, loan approval, earnest money, escrow, closing and possession dates, conveyed interest, type of deed, title evidence, property condition warranty, closing costs, damage and destruction, default, broker’s rep, commission, seller’s rep

Question 2

List the Sale Contract Secondary Provisions

Answer 2

Inpesctions, owner’s association disclosure, survey, environmental hazards, compliance with laws, due-on-sale, seller financing disclosure, rental property tenant’s rights, FHA or VA financing condition, floodplain and flood insurance, condominium assessments, foreign seller withholding, tax-deferred exchange, merger of agreements, notice dispute resolution, addenda

Question 3

Explain compliance w/ laws

Answer 3

The seller warrants that there are no undisclosed building codes or zoning violations

Question 4

Explain foreign seller withholding

Answer 4

The buyer must withhold the required percentage of the purchase price at closing if the seller is a foreign person or entity

Question 5

Explain survival clause

Answer 5

Sales contract parties continue to be liable for the truthfulness of representations and warranties after the closing