MAKING SENSE OF THE DATES IN YOUR CONTRACT

There are a lot of dates in your contract and they can be confusing—reference this guide for real-talk definitions of those dates. But remember, your contract is a legal document, so make sure you’re reading it carefully as well.

CONTENTS Alternative Earnest Money Deadline...... 1 Alternative Earnest Money Deadline Record Title Deadline...... 1 Paragraph Reference: 4.3 Record Title Objection Deadline...... 1 Responsible Party: Buyer This is the last possible date for delivery of earnest money from the Off-Record Title Deadline...... 1 Buyer to the earnest money holder (this is usually the listing broker’s Off-Record Title Objection Deadline...... 1 office or a company). Title Resolution Deadline...... 1 Association Documents Deadline...... 2 Record Title Deadline Association Documents Termination Deadline...... 2 Paragraph Reference: 8.1 Right of First Refusal Deadline...... 2 Responsible Party: Buyer or Seller by agreement By this date, any information in the county public record relating to Seller’s Disclosure Deadline...... 2 the ownership of the property must be obtained from the title company New Loan Application Deadline...... 2 in the form of a Title Commitment. It will declare who actually owns the New Loan Termination Deadline...... 2 property; any that are recorded and require release; any Buyer’s Credit Information Deadline...... 2 or judgments against the parties; and any HOA recordings. Disapproval of Buyer’s Credit Information Deadline...... 2 Existing Loan Documents Deadline...... 2 Record Title Objection Deadline Paragraph Reference: 8.2 Existing Loan Documents Objection Deadline...... 2 Responsible Party: Buyer or Seller Loan Transfer Approval Deadline...... 2 The Buyer or Seller can object to and terminate the contract due to Appraisal Deadline...... 3 something found in the Title Commitment, but must object by this date. Appraisal Objection Deadline...... 3 Appraisal Resolution Deadline...... 3 Off-Record Title Deadline New ILC or New Survey Deadline...... 3 Paragraph Reference: 8.3 Responsible Party: Seller New ILC or New Survey Objection Deadline...... 3 If there are any documents or issues that the Seller knows about, New ILC or New Survey Resolution Deadline...... 3 but aren’t in the public record, they must be disclosed by this Inspection Objection Deadline...... 3 date. An example would be any type of oral agreement between Inspection Resolution Deadline...... 3 neighbors or friends to allow the use of land or property. If the Inspection Termination Deadline...... 3 agreements are not legally recorded, they must be disclosed by Termination Deadline...... 3 the Seller to the Buyer by this date. Due Diligence Documents Delivery Deadline...... 3 Off-Record Title Objection Deadline Due Diligence Documents Objection Deadline...... 4 Paragraph Reference: 8.3 Due Diligence Documents Resolution Deadline...... 4 Responsible Party: Buyer Conditional Sale Deadline...... 4 The Buyer can object to and terminate the contract due to something Lead Based Paint Disclosure Deadline...... 4 found in the Off-Record Title Disclosure, but must object by this date. Lead Based Paint Termination...... 4 Date...... 4 Title Resolution Deadline Paragraph Reference: 8.5 Possession Date...... 4 Responsible Party: Seller or Buyer by agreement Possession Time...... 4 If the Buyer or Seller objected to anything disclosed in the Record or Walk-Through Date...... 4 Off-Record Title phase that needed to be addressed by the other party, Acceptance Deadline Date...... 4 the responsible party must do so by this date. Acceptance Deadline Time...... 4

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Association Documents Deadline Buyer’s Credit Information Deadline Paragraph Reference: 7.3 Paragraph Reference: 5.3* Responsible Party: Seller Responsible Party: Buyer The Seller must deliver copies of all HOA (Homeowners Association) If the Buyer is getting a loan from the Seller to pay any part of the purchase declarations, covenants, rules and regulations, restrictions, bylaws, operating price, this is the date by which the Buyer must provide accurate and up- agreements, financial documents, reserve studies, party wall agreements, to-date credit information to the Seller. Credit and financial information and minutes of board meetings to the Buyer by this date. The Seller can includes but is not limited to: credit reports, work history, bank account either do this via the title company, or on their own. balances, mortgage or rental payment history, current debts and any additional information requested by the Seller. Association Documents Termination Deadline Paragraph Reference: 7.4 Disapproval of Buyer’s Credit Information Deadline Responsible Party: Buyer Paragraph Reference: 5.3* If the Buyer finds anything in the Association Documents to be Responsible Party: Seller unacceptable, such as a pending assessment or covenant restriction, If the Buyer is providing a promissory note to the Seller to pay any part of they need to serve written notice to the Seller by this date to terminate the purchase price, this is the date the Seller must approve or disapprove the offer. the Buyer’s credit information. If the Seller—in their “sole subjective discretion”—disapproves the Buyer’s credit information, the Seller must Right of First Refusal Deadline provide written notice of disapproval to the Buyer by this date, the Paragraph Reference: 8.6 contract will be terminated and earnest money returned to the Buyer. Responsible Party: Seller This gives the holder of the first right of refusal—usually an HOA— Existing Loan Documents Deadline the option to approve the offer as written or exercise their right to reject Paragraph Reference: 5.4* the offer and purchase the property based on the terms of their right Responsible Party: Seller of refusal. It’s been used by associations to maintain value If the Buyer agrees to take on the Seller’s existing loan, the Seller must and not let property sell below market. It is more often used when a deliver copies of the loan documents (including note, of trust, and contingency of sale is accepted by the Seller with the right to continue any modifications) to the Buyer by this date. to market the property until the contingency is removed or the Seller obtains another acceptable offer. Existing Loan Documents Objection Deadline Paragraph Reference: 5.4* Seller’s Property Disclosure Deadline Responsible Party: Buyer Paragraph Reference: 10.1 If the Buyer agrees to take on the Seller’s existing loan, they have the right Responsible Party: Seller to review all documents as provided by the Seller and determine if approval The Seller has until this date to deliver the optional multi-page Property is required and can be obtained by the original lender of the promissory Disclosure. This disclosure covers the details of the condition of the home note. If, in the Buyer’s “sole subjective discretion,” the terms of the loan are and the home’s components. It must identify any problems or material unsatisfactory, they must serve written notice to the Seller to terminate the defects known by the Seller. When the Buyer signs this document, the loan on or before this date and earnest money will be returned to the Buyer. Buyer is not accepting the condition of the property, but only receipting delivery of the document. Loan Transfer Approval Deadline Paragraph Reference: 5.4* New Loan Application Deadline Responsible Party: Buyer Paragraph Reference: 5.1 If a third party (usually the bank who made the original loan to Responsible Party: Buyer the Seller) is required to approve the transfer of a loan to the Buyer, The Buyer must apply for a loan by this date. We always recommend with or without modification of the terms, and that approval cannot seeing a lender before the buying process begins. be obtained by the Buyer, then the Buyer must serve written notice to the Seller on or before this date. New Loan Termination Deadline Paragraph Reference 5.2 * 5.3 & 5.4 may be deleted from contract if they do not apply Responsible Party: Buyer If the Buyer is getting a loan to pay any part of the purchase price, this is the date by which he must accept or reject the terms of the loan. The terms of the loan include but are not limited to: the cost of the loan, interest rate, terms and conditions of the loan. This condition is for the sole benefit of the Buyer. If in the Buyer’s “sole subjective discretion,” the loan is unsatisfactory to them, they must serve written notice to the Seller to terminate the loan on or before this date and earnest money should be returned to the Buyer.

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Appraisal Deadline New ILC or New Survey Resolution Deadline Paragraph Reference: 6.2 Paragraph Reference: 9.3 Responsible Party: Buyer Responsible Party: Seller/Buyer This is the date by which the appraisal should be received by. The The Seller must consider the New ILC or New Survey Objection Lender will order the appraisal to ensure that the sale price for the and either agree or disagree to the request(s) by this date. The property matches the property’s value. If the value comes in under Seller will provide the Buyer a resolution as to what is agreeable the agreed upon purchase price, the Lender will not lend the Buyer with the Seller, or offer an alternative resolution. Negotiation may the appropriate money to purchase the . There may also be go back and forth until Buyer and Seller come to an agreement or conditions on the property that need correction for the Lender to lend. the contract is terminated as of this date passing. If this is the case, the Buyer will need to submit a letter to the Seller objecting to the appraisal by the Appraisal Objection Deadline. Inspection Objection Deadline Paragraph Reference: 10.3 Appraisal Objection Deadline Responsible Party: Buyer Paragraph Reference: 6.2 On or before this date, Buyer will have physical inspections of the Responsible Party: Buyer property completed. After the inspection, at the Buyer’s “sole subjective If the appraisal comes in below the agreed upon purchase price— discretion,” they may choose to terminate or may prepare and deliver a or there are other conditions—and the Buyer wishes to object, this is list (Inspection Objection Form) of items (safety, systems, structure, etc.) the date by which the Buyer will need to give written notice of such that Buyer requests the Seller to repair, replace, or correct. to the Seller. The Seller can choose to lower the purchase price and/or correct any issues, but it is up to the Buyer’s sole discretion Inspection Resolution Deadline whether to accept the new price or terminate the contract. The Paragraph Reference: 10.3 Buyer can also choose to increase their down payment to cover Responsible Party: Seller/Buyer the gap between the appraisal value and purchase price. The Seller must consider the Inspection Objection Form and either agree or disagree to the request(s) by this date. The Seller Appraisal Resolution Deadline will provide the Buyer an Inspection Resolution Form as to what Paragraph Reference: 6.2 is agreeable with the Seller, or offer an alternative resolution. Responsible Party: Seller/Buyer Negotiation may go back and forth until Buyer and Seller come to The Seller must consider the Appraisal Objection and either agree an agreement or the contract is terminated as of this date passing. or disagree to the request(s) by this date. The Seller will provide the Buyer a resolution as to what is agreeable with the Seller, or Inspection Termination Deadline offer an alternative resolution. Negotiation may go back and forth Paragraph Reference: 10.3 until Buyer and Seller come to an agreement or the contract is Responsible Party: Buyer terminated as of this date passing. On or before the Inspection Termination Deadline, the Buyer must notify the Seller in writing, pursuant to § 25.1, that this Contract New ILC or New Survey Deadline is terminated due to any unsatisfactory condition. Inspection Paragraph Reference: 9.1 Termination Deadline will be on the earlier of Inspection Responsible Party: Buyer or Seller Resolution Deadline or the date specified in § 3.1 for Inspection There are several types of surveys the Buyer may request and pay Termination Deadline. for. The most common is an ILC (Improvement Location Certificate) which shows the improvement locations (home, shed, fences, Property Insurance Termination Deadline detached garage, etc.) in relation to the property boundaries Paragraph Reference: 10.5 and easements. An official survey is a much more detailed and Responsible Party: Buyer expensive document usually purchased for larger, unplatted (not in Before this date, the Buyer should verify that an insurance company a subdivision) parcels of land. This is the date by which the survey of their choosing will insure the property for an amount acceptable requested must be received by the Buyer. to the Buyer. Certain circumstances may exist that could prevent an insurance company from insuring a property. Buyer may, at their New ILC or New Survey Objection Deadline “sole subjective discretion,” terminate the contract based on the Paragraph Reference: 9.3 information obtained from the insurance company. Responsible Party: Buyer Buyer has the right to object or terminate on or before this date Due Diligence Documents Delivery Deadline if the requested ILC or survey is not received or, after review, Paragraph Reference: 10.6 the Buyer finds any unsatisfactory matter. Responsible Party: Seller Seller will deliver any documents the Buyer requested in the contract (e.g. copies of utility bills, statements, architectural drawings, appliance and component manuals, etc.) that they have in their possession.

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Due Diligence Documents Objection Deadline Closing Date Paragraph Reference: 10.6 Paragraph Reference: 12.3 Responsible Party: Buyer Responsible Party: Buyer & Seller Buyer to review all documents provided by the Seller. If, in the This is the date that the Buyer and the Seller will sign all necessary Buyer’s “sole subjective discretion,” they find the documents to be documents—usually at a title company—to finalize the terms of the unsatisfactory, written notice must be served by the Buyer to the contract. Buyer must bring certified funds. Buyer and Seller must Seller on or before this date. bring suitable IDs.

Due Diligence Documents Resolution Deadline Possession Date Paragraph Reference: 10.6 Paragraph Reference: 17 Responsible Party: Seller/Buyer Responsible Party: Buyer & Seller The Seller must consider the Due Diligence Documents Objection This is the date the Buyer receives possession of the property. and either agree or disagree to the request(s) by this date. The The parties may agree to provide the Seller a few days after Seller will provide the Buyer a resolution as to what is agreeable closing to move. with the Seller, or offer an alternative resolution. Negotiation may go back and forth until Buyer and Seller come to an agreement or Possession Time the contract is terminated as of this date passing. Paragraph Reference: 17 Responsible Party: Buyer & Seller Conditional Sale Deadline This is the time of day agreed upon by Buyer and Seller that full Paragraph Reference: 10.7 possession of the property is surrendered by the Seller to the Buyer. Responsible Party: Buyer The Buyer may have a property that must be sold in order to enable Walk-Through Date the purchase of another property. The Buyer agrees to purchase the Paragraph Reference: 19.4 contracted property “conditional” on the sale of the already-owned Responsible Party: Buyer property. The Seller agrees to accept the Buyer’s offer “conditional on Buyer, upon reasonable notice, has the right to walk through the the sale” by a date no later than the Conditional Sale Deadline. If the Property prior to Closing to verify that the physical condition of the Buyer completes the sale, the condition is removed. If no sale occurs, Property and Inclusions complies with the Contract. the Buyer must serve written notice to the Seller to extend or terminate. Acceptance Deadline Date Lead-Based Paint Disclosure Deadline Paragraph Reference: 28 Paragraph Reference: 10.10 Responsible Party: Seller Responsible Party: Seller The date at which a Buyer’s offer expires unless accepted Unless exempt, if the Property includes one or more residential or countered in writing by the Seller. dwellings constructed or a building permit was issued prior to January 1, 1978, for the benefit of Buyer, Seller and all required real Acceptance Deadline Time estate licensees must sign and deliver to Buyer a completed Lead- Paragraph Reference: 28 Based Paint Disclosure (Sales) form on or before the Lead-Based Responsible Party: Seller Paint Disclosure Deadline. The time at which a Buyer’s offer expires unless accepted or countered in writing by the Seller. Lead-Based Paint Termination Paragraph Reference: 10.10 Responsible Party: Buyer If the Buyer elects to conduct or obtain a risk assessment or inspection of the Property for the presence of Lead-Based Paint or Lead-Based Paint hazards, Buyer has a Right to Terminate under § 25.1 by Seller’s receipt of Buyer’s Notice to Terminate on or before the expiration of the Lead-Based Paint Termination Deadline. If Buyer’s Notice to Terminate would otherwise be required to be received by the Seller after Closing Date, Buyer’s Notice to Terminate must be received by Seller on or before Closing. Buyer may elect to waive Buyer’s right to conduct or obtain a risk assessment or inspection of the Property for the presence of Lead-Based Paint or Lead- Based Paint hazards. If Seller does not receive Buyer’s Notice to Terminate within such time, the Buyer accepts the condition of the Property relative to any Lead-Based Paint as satisfactory and Buyer waives any Right to Terminate under this provision.

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