Real Estate 101 Earnest Money
Additional Earnest Money
This section explains the conditions surrounding any additional earnest money that will be involved in the transaction. It is not usually necessary to include more earnest money, but this part of the agreement addresses the additional funds should they become part of the deal. Since homes in the St George Real Estate market have been moving so quickly, it can sometimes be a good idea to sweeten and offer with additional earnest money.
Addenda is the term for additional pieces of the agreement that are not included in the main body of the REPC. Once the Addenda are signed they become a part of the transaction, and should be addressed in any and all further negotiations. The UAR Utah Association of Realtors has made available to St George Real Estate agents several phrases that can be inserted into the body of the Addenda. This is helpful as the state prepared verbiage are prepared by attorneys.
Home Warranty As Is Condition Of Property
In our St George Real Estate market it is very common for a Home Warranty to be included in real estate transactions. It is really a no brainer for both buyer and seller to include a home warranty. The typical cost for a Home Warranty is around $400 this cost can quickly be recovered should the new home owner find they have a problem with their air conditioner. There are deductibles and trip charges that are usually part of most warranties. This section explains if there will be a warranty, who will pay for it, who will select it, and how much it will cost. I can help you find a home warranty product available for homes in the St George Real Estate area.
As is condition of the property basically says that the seller has disclosed everything he or she knows about the house. It also explains that the buyer has time to get a home inspection, and complete due diligence. Once this is done, all responsibility for the purchase of the home and any deficiencies become the responsibility of the buyer. This is assuming that the seller disclosed everything he knew. It is important to exercise caution with an “as is property” in the St George Real Estate area, because of the possibility of blue clay.
Final Pre-Walk Through Inspection
One of the final phases of the St George real estate transaction is the Final Walk through. This is the last chance for the buyer to look the property over and to make sure that everything is in place that has been agreed upon. If the seller agreed to replace a window and this hasn’t been done the buyer can have the amount necessary to repair the window placed in escrow. This clause is not really an escape clause, meaning that the deal is not dead if the repairs are not completed. This gives the seller an additional 30 days to complete the work promised. At the end of the 30 days the money in escrow is given to the buyer. This part of the REPC being used for St George real estate sales is designed to “survive” or remain in effect after closing.
Changes During Transaction
This paragraph explains that the seller agrees not to encumber (borrow against) the property, lease it out, or make any major changes in the building. This protects the buyer from taking possession of a home that is not the same as he saw it when the contract was entered into.
Authority Of Signers
Simply put, this paragraph states that the person signing the REPC has the authority to do so.
Because people are so friendly and accommodating within the St George Real Estate market area, sometimes things are said during the showing that may not be possible. This paragraph is to keep everything within the transaction on the up and up. This could protect a lender from a side deal that may cause them problems down the road. It also helps both parties to understand that unless it is in the REPC it is not part of the deal. The best example of this would be if the seller said, “I will give you the boat, if you buy the house.” Anything that is exchanged must be on the REPC or a separate bill of sale. Real Estate agents in the St George area are trained to assure that everything included in the deal is in writing.