contract of sale

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Q: How is the premises being sold identified in the contract?

A: By street address, tax map designation, and/or legal description.

What is a Contract of Sale?

A legally binding agreement between a seller and purchaser for the transfer of real property.

Q: What are common provisions in a real estate contract?

A: Purchase price, property description, financing terms, physical condition, closing date, title, possession, default provisions, and riders.

Q: What does the Purchase Price Provision state?

A: The total purchase price, deposits, and the balance due at closing.

Q: Define Fixture.

A: Personal property that has become permanently attached to real property and is considered part of the real estate.

Q: Define Personal Property.

A: Movable property that is not permanently attached to the real estate.

Q: Give examples of fixtures.

A: Built-in cabinets, furnace, ceiling fans, built-in dishwasher.

Q: Give examples of personal property.

A: Furniture, rugs, washer, dryer, and most appliances not attached.

Q: What test is used to determine whether an item is a fixture?

A: The MARIA Test.

Q: What does MARIA stand for?

A: Method of annexation, Adaptability, Relationship of parties, Intention, Agreement.

Q: How do you calculate the balance due at closing?

A: Purchase Price − Deposits = Balance Due at Closing.

Q: Who is the Mortgagor?

A: The borrower.

Q: Who is the Mortgagee?

A: The lender.

Q: What is an Assignment of Mortgage?

A: The transfer of a mortgage from one lender to another.

Q: What is an Assumption of Mortgage?

A: The buyer takes over the seller's existing mortgage obligation.

Q: What is a Purchase Money Mortgage to Seller?

A: Seller financing where the seller lends part of the purchase price to the buyer.

Q: How are premises usually sold?

A: "As Is."

Q: What is Marketable Title?

A: Title free from reasonable doubt and acceptable to a reasonable purchaser.

Q: Name common title defects.

A: Liens, judgments, boundary disputes, unknown heirs, unsatisfied mortgages.

Q: What deed is typically provided at closing in New York?

A: Bargain and Sale Deed with Covenant Against Grantor's Acts.

Q: What are the three types of closing dates?

A: Specific date, On or About date, and Time Is of the Essence date.

Q: What does "Time Is of the Essence" mean?

A: The closing date is strict and must be met.

Q: What happens if the seller defaults?

A: Buyer may sue for specific performance, damages, and/or recovery of the deposit.

Q: What happens if the purchaser defaults?

A: Seller may retain the deposit as liquidated damages and cancel the contract.

Q: What is a Rider?

A: An attachment that adds to or modifies the printed contract.

Q: What issues are commonly addressed in riders?

A: Repairs, personal property, possession, septic/well issues, contingencies, escrow agreements.

Q: When is possession usually delivered?

A: At closing unless otherwise stated.

Q: What is the Real Property Condition Disclosure Statement?

A: A seller disclosure regarding known defects and property conditions.

Q: What properties require lead paint disclosures?

A: Residential properties built before 1978.

Q: What must a seller provide regarding lead paint?

A: Lead Paint Disclosure Form and EPA pamphlet.