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.
Paragraph 2- Page 1
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.
Paragraph 3- Page 1
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.
Paragraph 10 - Page 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.
Paragraph 12 - Page 6
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.
Paragraph 22 - Page 8
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
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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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