Sales Contracts: Required Information

Question 1

A residential purchase contract must include a tax notice advising the parties that, unless otherwise agreed, any transfer tax must be shared equally by the buyer and seller

Answer 1

A real estate contract is not rendered invalid by the omission of the tax statement

Question 2

Notice of buyer’s right of selection

Each real estate contract for the sale of a single-family dwelling must contain, in bold-faced type, a statement that the buyer has the right to select the buyer’s own

Answer 2

▪ Title insurance company
▪ Settlement company
▪ Escrow company
▪ Mortgage lender
▪ Title lawyer.

Question 3

Notice of buyer’s right of selection

Answer 3

▪ a contract must also contain, in bold-faced type, a statement that a seller may offer owner financing as a condition of the contract.

▪ A sales contract must also include a statement about the Real Estate Guaranty Fund

▪ a real estate contract is not rendered invalid by the omission of these statements

Question 4

Ground rent

Answer 4

If property is subject to a ground lease this must be disclosed in the sales contract