Contract Phrases
Contract phrases are included into the purchase agreements. They are basically a list of various useful phrases. A few of these clauses have multiple options. You should cautiously think about how these clauses can be implemented in your condition. The clauses that have parenthesis are intended to be amended.
You should seek professional assistance and legal advices prior to using these phrases.
Contract phrases can be broadly categorized into the following:
1) Inspection/Repair Clauses
The following information is available under these clauses:
- Type of improvements
- Zoning Use-Type
- Inspection Dates
- Final Inspection Date
- General Inspections
- Termite Inspections
- AS-IS
- Repairs before closing
- Financial Repairs
- Seller to carry on with insurance till the time of closing
- Process in case of loss or damage of premises
- Construction orders
- Casualty loss if pre-occupied
- Terms and conditions for physical state of property at closing – property upkeep
2) Financing/Mortgage Clauses
The following information is available under these clauses:
- Consideration over mortgage
- Other consideration
- Skip, stutter mortgage clause
- Allocation of buying price
- Exculpatory clause
- Transfer fees
- Stipulation for release of lots or acreage
- Late charges
- Transfer fees
- Prepayment with discount
- Subordination
- Not due on sale
- First right of refusal
- Replacement of collateral
3) Escrow/Closing Instructions
Information available under these clauses can be categorized into the following:
- Closing
- Date of closing
- Deed
- Deed in escrow
- Deed escrowed
- Insurance and tax escrow
- Escrow transfer – no credit to seller
- The terms and conditions of agreement should stay alive till the recording of the deed
- Instruments of sale
- Terms survive closing
4) Tenant Clauses
Information available under these clauses can be categorized into the following:
- Closing conditional on buyer finding a proper tenant
- Every rent collected by the seller during the month of closing should be prorated at the time of closing
- Seller has the responsibility for every rent that has not been collected during closing and the same should be credited to the buyer
- At the time of closing, all tenant funds (last month rent/security) should be transferred by the seller to the buyer
- Buyer would have the authority to sanction new lease
- Rent collection
- Probable buyers/probable tenants
5) Miscellaneous Clauses
The following information is available under these clauses:
- Possession at closing and/or financing
- Extra down payment to prolong the closing date
- Survey
- Utilities
- Utility Deposits
- Extended warranties
- Attorney’s fees
- Subject
- Time is of the essence
- Enforcement
- Contract assignment
- Personal property