NJ RE Contract Flashcards
Study
Section 1 of the RE Contract?
- PURCHASE AGREEMENT AND PROPERTY DESCRIPTION:
- Asks for Buyers name(s) and address
AGREES TO PURCHASE FROM
- Asks for Sellers name(s) and address:
THROUGH THE BROKER(S) NAMED IN THIS AGREEMENT AT THE PRICE AND TERMS STATED
BELOW, THE FOLLOWING PROPERTY:
- Asks for the:
- Property Address
- Municipal tax map of
- County
- Block / Lot
- Approximate size of the lot
THE WORDS “BUYER” AND “SELLER” INCLUDE ALL BUYERS AND SELLERS LISTED ABOVE.
Section 2 of the RE Contract?
PURCHASE PRICE: THE TOTAL PURCHASE PRICE IS:
Here you need to include the purchase price in numbers.
Section 3 of the RE Contract?
MANNER OF PAYMENT:
(A) Deposit paid by Buyer on signing of this Agreement to Listing Broker or Participating Broker, by cash or check, for which this is a receipt:
(B) Additional deposit to be paid by Buyer on or before (include a date here - usually 10 days)
All deposit monies paid by the Buyer shall be held in escrow in the NON-INTEREST BEARING
TRUST ACCOUNT of , (fill in Seller’s Attorney here) Escrowee, until closing of title, at which time all monies shall be paid over to the Seller. The deposit monies shall not be paid over to the Seller prior to the closing of title, unless agreed in writing by both the Buyer and Seller. In the event the Buyer and Seller cannot agree on the disbursement of these escrow monies, the Escrowee may place the deposit monies in Court requesting the Court to resolve the dispute.
(C) IF PERFORMANCE BY BUYER IS CONTINGENT UPON OBTAINING A MORTGAGE.
The Buyer agrees to apply immediately for a mortgage loan through any lending institution of the Buyer’s choice or the office of the Listing Broker or the Participating Broker. The application shall be furnished by the Buyer in writing on an application form prescribed by the lending institution to which the application shall be submitted. Buyer shall also furnish, in a timely manner, such other documents and information as is usually required by said lending institution. Failure of Buyer to comply with the foregoing, in good faith, shall be deemed a breach of this Contract of Sale. The amount of mortgage loan required by the Buyer F.H.A / V.A. / Conventional /A.R.M. year direct reduction plan with interest at not more % and not more than Points. Buyer agrees to pay not more ______ Points. Seller agrees to pay not more than ______ Points.
IF THE MORTGAGE LOAN HAS NOT BEEN ARRANGED, OR IF THE BUYER HAS NOT NOTIFIED SELLER OF BUYER’S DECISION TO COMPLETE THE TRANSACTION WITHOUT OBTAINING A MORTGAGE COMMITMENT, ON OR BEFORE (Date) THEN EITHER BUYER OR SELLER MAY VOID THIS AGREEMENT BY WRITTEN
NOTICE TO THE OTHER PARTY. The method of notifying the other party shall be in accordance
51 with Section 21 of the Agreement.
BALANCE OF PURCHASE PRICE
The balance of the purchase price shall be paid by cash, certified check or Attorney’s Trust Account check on delivery of a (Type of Deed). Title to the Property will be free from all claims or rights of others, except as described in Sections 6, 7 and 8 of this Agreement. The deed shall contain the full legal description of the Property. Payment of the balance of the purchase price by Buyer and delivery of the deed and affidavit of title by
Seller occur at the “Closing.” The Closing will take place on or before ______ (approximately 40 days) at the office of ________ (ideally Buyer) or such other place that the Seller and Buyer may agree.
TOTAL PURCHASE PRICE: (fill in amount here)
Buyer’s Initials:_______________
Seller’s Initials:_______________
Section 4 of the RE Contract?
BUYER FINANCIALLY ABLE TO CLOSE:
Buyer represents that Buyer has sufficient cash available (together with the mortgage referred to in Section 3) to complete this purchase.
Section 5 of the RE Contract?
ACCURATE DISCLOSURE OF SELLING PRICE:
The Buyer and Seller certify that this Contract accurately reflects the gross sale price as indicated on line sixty-three (63) of this Contract. The Buyer and Seller UNDERSTAND AND AGREE that THIS INFORMATION SHALL BE DISCLOSED to the Internal Revenue Service as required by law.
Section 6 of the RE Contract?
TENANTS, IF ANY:
This sale is made subject to the following tenancies. The Seller warrants that these tenancies are not in violation of existing Municipal, County, State or Federal rules, regulations or laws.
This section asks for the : NAME (Tenants) LOCATION RENT SEUCRITY DEPOSIT TERM
Section 7 of the RE Contract?
QUALITY OF TITLE: RENT SECURITY DEPOSIT TERM
NAME LOCATION
This sale will be subject to easements and restrictions of record, if any, and such state of facts as an accurate survey might disclose. Generally, an easement is a right of a person other than the owner of Property to use a portion of the Property for a special purpose. A restriction is a recorded limitation on the manner in which a Property owner may use his/her/their Property. The Buyer does not have to complete the purchase, however, if any easement, restriction, or facts disclosed by an accurate survey would substantially interfere with the use of the Property for residential purposes. The sale will also be made subject to applicable zoning ordinances.
Title to the Property shall be good, marketable, and insurable, at regular rates, by any title insurance company licensed to do business in the State of New Jersey, subject only to the claims and rights described in this section and Section 6. Buyer agrees to order title insurance commitment (title search) and survey if necessary and to furnish copies to Seller. In the event Seller’s title shall contain any exceptions other than as set forth in this paragraph, Buyer shall notify Seller and Seller shall have 30 days within which to eliminate those exceptions. If Seller cannot remove those exceptions, Buyer shall have the option to void this Contract or to proceed with closing of title without any reduction in the purchase price. If Buyer elects to void this Contract, as provided in the preceding sentence, the deposit money shall be returned to Buyer and Seller shall reimburse Buyer for search and survey expenses not exceeding _______dollars.
Section 8 of the RE Contract?
BUILDING AND ZONING LAWS:
The Buyer intends to use the Property as a of the Seller’s knowledge, that this use does not violate any applicable zoning ordinance, building code or other law. The Seller will pay for and obtain Certificate of Occupancy, Certificate of Land Use Compliance or other similar document required by law and will arrange and pay for all inspections required to obtain such document. SELLER AGREES TO CORRECT ALL VIOLATIONS, AT THE SELLER’S OWN EXPENSE, PRIOR TO THE CLOSING OF TITLE.
Section 9 of the RE Contract?
- ITEMS INCLUDED IN SALE:
Gas and electric fixtures, cooking ranges and ovens, hot water heaters, linoleum, T.V. antenna, screens, storm sash, shades, blinds, awnings, radiator covers, heating apparatus and sump pump, if any, except where owned by tenants, are included in this sale. All of the appliances shall be in working order as of the closing of title. This provision shall not survive closing of title. This means that the Seller DOES NOT GUARANTEE the condition of the appliances AFTER the deed and affidavit of title have been delivered to the Buyer at the “Closing”. The following items are also specifically included: (List exclusions here)
Section 10 of the RE Contract?
ITEMS EXCLUDED FROM SALE (List items here)
Section 11 of the RE Contract?
- ASSESSMENTS:
All confirmed assessments and all unconfirmed assessments which may be imposed by the municipality for public improvements which have been completed as of the date of Closing are to be paid in full by the Seller or credited to the Buyer at the Closing. A confirmed assessment is a lien (legal claim) against the Property. An unconfirmed assessment is a potential lien (legal claim) which, when approved by the appropriate governmental body, will become a legal claim against the Property.
Section 12 of the RE Contract?
FINAL INSPECTION:
Seller agrees to permit the Buyer or the Buyer’s duly authorized representative to examine the interior and exterior of the Property at any reasonable time immediately before Closing.
Section 13 of the RE Contract?
NEW JERSEY HOTEL AND MULTIPLE DWELLING HEALTH AND SAFETY ACT:
If the New Jersey Hotel and Multiple Dwelling Health and Safety Act applies to the Property, the Seller represents that the Property complies with the requirements of the Act.
Section 14 of the RE Contract?
NO ASSIGNMENT:
This Agreement shall not be assigned without the written consent of the Seller. This means that the Buyer may not transfer to anyone else his/her/their rights under this Agreement to buy the Property.
Section 15 of the RE Contract?
RISK OF LOSS:
The risk of loss or damage to the Property by fire or otherwise, except ordinary wear and tear, is on the Seller until the Closing.