NC offer to purchase 2-T Flashcards
according to the mailbox rule you are under contract when?
A- when the seller receives the acceptance from the buyer
B- when the buyer sends the their acceptance (text, email, mail)
B
under contract when its sent EVEN if it is not received
where does due diligence fee go to?
straight to the seller
if the buyer terminates during the due diligence period, and there is an earnest money deposit, where does the earnest money go?
refunded back to the buyer
doesn’t matter what the reason is
Where is the earnest money held?
escrow account or trust account
if you terminate your contract after the due diligence period, where does the earnest money go
paid to the seller as liquidated damages
because it is a breach of contract (seller can’t sue for more money though)
if the buyer decides they don’t want to purchase the property, when do they have to decide by?
by 5pm the last day of the DUE DILIGENCE period
is the due diligence period negotiable?
yes
why have earnest money?
A. to protect the buyer
b. to protect the seller
b. the earnest money goes to the seller if the contract is terminated (breached) AFTER the due diligence period
(so its good to have a higher earnest money deposit and to direct your seller to if you are a listing agent)
when could the buyer get the earnest money back?
if they terminate during the due diligence period
where is earnest money put towards AFTER the due diligence period if the buy BUYS the house?
gets credited towards the purchase price of the house
can the seller sell the house to someone else during the due diligence period?
no, you are under contract the buyer has locked the property down
is the buyer required to do an inspection during the due diligence period?
no! only if they want to. nothing is required. but they cannot cancel the contract after the period without a penalty (lose earnest money)
what happens is the buyer can’t get a loan after due diligence period?
they lose the DD fee and the Earnest money bc they are after the DD period
do sellers get the ability to get out of the contract?
no. they don’t get the ability to get out of the contract at all
when is the buyer supposed to pay the DD fee?
the day they go under contract
What happens if the buyer doesn’t pay the DD or EMD when they are supposed to?
the seller must make WRITTEN demand for the money to the buyer and then give the buyer 1 BANKING (tomorrow) day to provide good funds
when is the EMD due from they buyer?
the day they go under contract or within 5 days
can you delay the settlement? how? and how long?
yes, both sides can
just notify
14 days
can either party delay the settlement?
yes
how long can either party delay a settlement?
14 days
can you delay a settlement without notice?
yes, but try to give as much notice as possible
is the DD fee refundable?
no unless SELLER breach of contract (doesn’t sell)
if seller breaches contract and does not sell where does EMD and DD fee go?
to the buyer
if the seller breached contract does he pay the costs they buyer had to pay during the DD period?
yes, (appraisals, inspections, mover etc) the seller must pay the buyer for all of those costs
who choses the closing attorney?
buyer
