Contract Mastery - Texas

Contract Mastery INDEPENDENCE TITLE

E D U C A T I O N © 2022 Independence Title Education

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Contract Timelines • Always calendar days!

• Always end at midnight unless otherwise stated.

• Effective date is 0 next day is 1.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 1- Page 1

• Confirm the seller’s name with the appraisal district • Confirm the seller is the real seller • Confirm buyer name with driver’s license

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

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Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

PROPERTY FORMULA 2A

2B

2C

Land + Improvements + Accessories = PROPERTY

PROPERTY IS WHAT CONVEYS

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 2 - Page 1

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

How is it determined if it stays?

• The courts use the “TRIPLE A” method: üAnnexation – can it be removed without causing damage? üAdaptation – is it customized for the property or is it standard? üAgreement – what was their intention?

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

“We have to keep Grandma’s chandelier!!!”

§ Listing agents be proactive § Use paragraph 2D, Exclusions, in the contract

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

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Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 4 – Page 1

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Addendum Regarding Residential Leases

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 4 – Page 1

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Addendum Regarding Fixture Leases

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2 Independence Title 1234 Main Street Austin, TX 78730 250.00

5000.00

Acceptable Methods of Payment are:

Independence Title $5000 EM / $250 OF

$5250.00

• Zoccam • Cashier's Check • Wire Transfer • Personal Check

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2 Independence Title 1234 Main Street Austin, TX 78730 250.00

5000.00

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2 Independence Title 1234 Main Street Austin, TX 78730 250.00

5000.00

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2 Independence Title 1234 Main Street Austin, TX 78730 250.00

5000.00

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2 Independence Title 1234 Main Street Austin, TX 78730 250.00

5000.00

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 5 – Page 2

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 6 Class

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

“Will be amended”, means WILL get the coverage!

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

5% of this #

$400K = $120.65

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 6 - Page 2 • Details about the title policy and who will pay for it.

• Details about delivery of the title commitment.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 6 - Page 3 • Delivery of the existing survey and T-47 affidavit.

• Use (2) or (3) when a new survey is needed.

• Use if the buyer has a specific need for the property example shortterm rental.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 6 - Page 3-4

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Know your “survey situation”

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Date of the most recent survey

NONE

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

T-47 AFFIDAVIT - GET IT NOTARIZED! • The T-47 must be notarized and executed by all the SELLERS within the number of days entered on the contract.

• Without the T-47 sworn affidavit, the Buyer can obtain a new survey at the Seller’s expense!

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 6D - Page 3 ????

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

PARAGRAPH 6D. OBJECTIONS OBJECTIONS ISSUE “Buyer may object in writing to defects, exceptions, or encumbrances to the title: disclosed on the survey other than items 6A(1) through (7) above; disclosed in the Commitment other than items 6A(1) through (9) above; or which prohibit the following use or activity:__________.”

• PARK RV IN THE DRIVEWAY? • SHORT TERM RENTAL • BUILD A SWIMMING POOL? • IN-HOME DAY CARE? • URBAN CHICKENS? • EXOTIC PET RANCH

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 7 Pages 4-5

Use when a buyer wants to perform hydrostatic testing.

• Only a licensed plumber • Establishes authorization by the seller • Allocates risk of damages to the property

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 7 Pages 4-5

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 7 Pages 4-5

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 7 Pages 4-5

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 7 Pages 4-5

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 7 Pages 4-5

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 8 Page 5

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 9A - Pages 5-6

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

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Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

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Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

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Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

# 12 – Property Taxes

Your buyer is responsible for the property taxes!

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 13 - Pages 6-7

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 15 - Pages 7

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 20 FIRPTA

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Paragraph 21 - Page 8

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

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Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

HOA Addendum

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Subdivision Information (AKA The Resale Package)

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Who Will Pay For It

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Section A #2 in the HOA Addendum

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Section A #3 in the HOA Addendum

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Section B – Changes to the Subdivision Information

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Section C – Allocation of Other Fees

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Section D Provides Authorization

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

Notice to Buyer

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

X

HOA fees are as follows: Total Fees: $2100

15

• Resale Fee: $325 • Transfer Fee/Set Up Fee: $225 • Additional info: • Collect $275 Working Capital on all sales • Collect Community Enhancement Fee equal to .3% of sales price on all closings. ü Sales Price is $425,000. ü Fee= $1275

500.00

$500

$1600

Buyer

Seller

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

UPLOAD UNDER ADDITIONAL DOCS

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

UPLOAD UNDER ADDITIONAL DOCS

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

NOTICE OF WITHDRAWL

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

INVITATION TO BUYER TO SUBMIT NEW OFFER

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

THERE’S A FORM FOR THAT!

Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.

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