A contract for the purchase and sale of residential properties in California is a contract between a natural/legal person who sells real estate and the natural/legal person who wishes to purchase that property. The parties, buyers and sellers, agree on the terms of this Agreement in order to reach a mutually beneficial agreement. A price is set by the seller (and possibly negotiated by the buyer) and a closing date for the sale is implemented. A purchase and sale contract also contains agreements and provisions covering everything from financing options and serious money to the condition of real estate and inspections. It is the seller`s legal duty to include a disclosure informing the buyer of any questions regarding the condition of the property. Declaration of Conformity for Water Heaters [Section 19211(b)) – Sellers of real estate must confirm in writing that the water heater contained in the property is properly secured to avoid displacement in the event of an earthquake. (The title form also contains the declaration of conformity of the fire detectors.) Disclosure of Real Estate Tax (CC § 1102.6c) – the following must be included in a 12-point rental agreement with a 14-point written title: you must use this agreement if you (a) are a potential buyer or seller of housing, (b) want to define the legal rights of each party to the sale and (c) set out the respective obligations of each party before the transfer of title. There are four ways to finance the purchase of a home in a real estate purchase agreement. What you choose depends on both the financial position of the buyer and the seller. Among your options are: What is Earnest Money? Serious money is the deposit that a buyer deposits to show his interest and seriousness when buying the residential property. If the contract is performed, the amount is charged to the purchase price. If the sale fails, the money is returned to the buyer.
Serious money deposit: A serious deposit is a deposit that shows the good faith and obligation of the buyer to continue the purchase of the property. In return for the buyer`s serious money deposit, the seller withdraws the property from the market. At the end of the purchase, the deposit of serious money is charged to the purchase price. When the contract is terminated in accordance with the terms of the contract, the serious deposit is usually returned to the buyer. California property tax law requires the assessor to revalue the property at the time ownership of the property changes. Under this law, you can receive one or two additional tax bills depending on when your loan closes….