ColoradoRealty Search

Time of Day

Item No. 1, Reference §3: Time of Day Deadline

This clause ensures that all deadlines in the contract are clear and enforceable. If a specific time is set, all relevant deadlines will adhere to that time. If left blank or marked “N/A,” the default deadline is 11:59 p.m. Mountain Time. Amy prefers to write in a time of day deadline that enables all parties to relax in the evening. So look for something around 6:00pm.

Earnest Money

Item No. 2, Reference §4: Alternative Earnest Money Deadline

This clause outlines the importance of the earnest money deposit, which serves as a financial commitment from the Buyer to demonstrate their serious intent to purchase the property. Think of it as “skin in the game.” This is the date by which the Buyer is to have “good funds” of a cashier’s check or wire transfer to the title company.

The funds are typically held by a neutral third party, such as a Title Company, until closing. In the event of a contract dispute or breach, the correct legal steps must be followed before disbursing the funds. If the Buyer defaults on the contract, the Seller may be entitled to retain part or all of the earnest money.

Title

Item No. 3, Reference § 8: Record Title Deadline

The Record Title Deadline is the date by which the Title Company must provide a title commitment for the current owner’s Title Insurance Policy. This document might include plats, declarations, covenants, conditions, recorded leases, and restrictions that may affect the property. Once received, I will review the details with you and address any questions or concerns.

Item No. 4, Reference §8: Record Title Objection Deadline

The Record Title Objection Deadline is the date by which the Buyer can raise objections or terminate the contract if issues are found in the Title Commitment. If the Seller does not receive a written objection from the Buyer by this deadline, the Buyer is considered to have accepted the Title, including any third-party rights they are now aware of.

Item No. 5, Reference §8: Off-Record Title Deadline

The Off-Record Title Deadline is the date by which the Seller must disclose any documents or issues related to the property’s ownership and use that are not part of the public record. This may include items such as leases, easements, or other agreements that could affect the Buyer’s ownership or intended use of the property. Items in this Section can impact the Buyer’s ability to convey the property in the future.

Item No. 6, Reference §8: Off-Record Title Objection Deadline

The Off-Record Title Objection Deadline is the date by which the Buyer must raise objections or terminate the contract if any issues disclosed by the Seller in the Off-Record Title are deemed unsatisfactory. If the Buyer does not object by this deadline, they are considered to have accepted these disclosures.

Item No. 7, Reference §8: Title Resolution Deadline

The Title Resolution Deadline is the final date by which any title-related objections raised by the Buyer must be resolved. If no agreement is reached between the Buyer and Seller by this deadline, the Buyer must either accept the title as is or terminate the contract if they still have the right to do so. After this date, the Buyer cannot raise further title objections or terminate the contract due to title concerns.

Item No. 8, Reference §8: Third Party Right to Purchase/Approve Deadline

The Right to Purchase/Approve is a contractual provision that grants a third party the first opportunity to either purchase the property or approve the sale to another Buyer. If the third party exercises its right to purchase, the contract between the Buyer and Seller terminates. However, if the third party waives its rightordoes not act within the required timeframe, the contract remains valid, and the Buyer can proceed with the purchase.

This type of provision is uncommonbut can apply in certain scenarios, such ashomeowners’ associations, tenant rights, or corporate-owned properties.

Owner’s Associations (HOAs)

Item No. 9, Reference §7: Association Documents Deadline

The Association Documents Deadline is the date by which the Seller must provide the Buyer with all current homeowners’ association (HOA) documents related to the property, if applicable. READ THEM CAREFULLY.

This is critical, especially for properties in townhome or condo communities, because HOA documents outline rules, restrictions, fees, and obligations that could impact ownership. Key areas to review include:

• Pet policies (breed/size restrictions)
• Architectural control (limitations on exterior changes)
• Utilities, Insurance, other pooled expenses (who pays for what?)
• Covenants & restrictions (rules governing property use)
• Parking regulations (guest and resident parking rules)
• Financial health of the HOA (budget, reserves, special assessments)

Buyers should carefully review these documents to ensure they align with their needs and expectations before proceeding with the purchase.

Item No. 10, Reference §7: Association Documents Termination Deadline

The Association Documents Termination Deadline is the date by which the Buyer must decide whether to accept all the rules and restrictions outlined in the HOA documents. If the Buyer objects to any of the HOA terms, they do not have the option to negotiate or resolve the issues. Instead, their only course of action is to terminate the contract by this deadline. Yes, you can volunteer for the Board and maybe even run for President! But the HOAs are what they are when you buy the property.

Once this date passes, the Buyer is considered to have accepted the HOA documents as they are.

Seller’s Disclosures

Item No. 11, Reference §10: Seller’s Property Disclosures

The Seller’s Property Disclosure Deadline is the date by which the Seller must provide the Buyer with a completed Seller’s Property Disclosure. In Colorado, Sellers are legally required to disclose any known material facts or issues that could affect the property’s value or condition, such as:

• Structural problems
• Water damage
• Pest infestations
• Previous repairs
• Environmental hazards (e.g., mold, lead-based paint, etc.)

This form is typically filled out before the property is even listed, so that the Buyer has all relevant information upfront. However, it’s important to note that Sellers might overlook certain issues or may not be aware of some conditions, which is why inspections are critical. Inspections help ensure that the Buyer verifies all the details and uncovers any issues not disclosed or known to the Seller.

Item No. 12, Reference §10: Lead-Based Paint Disclosure Deadline

The Lead-Based Paint Disclosure Deadline applies only if the property was built before 1978, as this is when the U.S. banned the use of lead-based paint in residential properties. In these cases, the Seller is required to disclose whether they are aware of any lead-based paint (LBP) used in the property, both inside the house and on its exterior.

The Buyer has the right to:

• Ask the Seller for disclosure about lead-based paint usage
• Test the property for lead-based paint if they choose

If the Buyer does not feel comfortable with the lead-based paint situation, they can potentially terminate the contract or take the necessary steps for remediation (if found). This is important, as lead-based paint poses health risks, especially to young children and pregnant women.

Loan and Credit

Item No. 13, Reference §5: New Loan Application Deadline

The New Loan Application Deadline is the date by which the Buyer must be approved for financing, assuming they are not paying with cash. This ensures the Buyer has secured a loan or mortgage to complete the purchase.

In today’s real estate market, especially in competitive markets, sellers often require Buyers to submit a Pre-Approval Letter (from the lender) along with their offer. This shows the Seller that the Buyer is serious and financially capable of purchasing the home. Because of this, it’s common for the New Loan Application Deadline to be marked as “Completed” or “Met”, indicating the Buyer is already approved for financing at the time of making the offer.

If the Buyer is already pre-approved before submitting an offer, this section will typically not present any issues. However, if a Buyer needs to complete the approval process, it could delay the timeline and risk the deal.

NOTE: Items Nos. 14-21, below, would generally be marked N/A in most cases unless there are specific conditions like:

• Seller Financing: Where the seller is providing financing directly to the buyer.
• Buyer Not Fully Pre-Approved: If the buyer hasn’t already been pre-approved for a loan before submitting the offer.

Item No. 14, Reference §5: New Loan Terms Deadline

The New Loan Terms Deadline is a buyer-protective clause that allows the Buyer to back out of the contract if they are dissatisfied with the terms of the loan. For example, if the interest rate, monthly payments, or other loan conditions are not acceptable to the Buyer, they can object and terminate the contract without penalty, assuming it’s before the deadline.

This clause is meant to shield the Buyer from being locked into a contract for a loan that may not meet their financial needs or expectations.

In today’s real estate environment, most buyers get pre-approved for loans before making offers. So, the likelihood of needing to use the New Loan Termination Deadline is lower, because they’ve already been informed about the terms of their loan before making an offer.

Item No. 15, Reference §5: New Loan Availability Deadline

The New Loan Availability Deadline is a key protection for the Buyerwhen they are obtaining financing. It ensures that the contract is conditionalon the availability of the loan—in other words, the Buyer is not obligated to proceed with the purchase if the lender’s review or underwriting process reveals issues with the loan that the Buyer finds unsatisfactory.

Here’s how it works:

• New Loan Availability refers to the process where the lender assesses the Buyer’s loan application, including their financials, credit history, and property details. If the lender does not approve the loan or if the terms are significantly different from what the Buyer was expecting (e.g., higher interest rates or less favorable repayment conditions), the Buyer can choose to terminate the contract.
• The Buyer has the right to cancel the deal on or before the specified New Loan Availability Deadline if the loan availability is not satisfactory.
• This protection ensures that the Buyer does not get locked into a contract for a property they cannot afford or for terms that aren’t suitable for their financial situation.

If a Buyer is concerned that their loan may not be approved or is unsure about the terms, the New Loan Availability clause gives them a window of time to back out before committing further.

Item No. 16, Reference §5: Buyer’s Credit Information Deadline

This clause applies specifically when the Seller is providing financing to the Buyer (also known as Owner Carry FinancingorSeller Financing). In this situation, the Buyer must provide the Seller with certain documents to help the Seller assess the Buyer’s ability to repay the loan.

• Required Documents: The Buyer will need to submit financial documentation such as tax returns, bank statements, or a credit report, and any other documents the Seller might request to determine whether the Buyer is a good candidate for financing.
• When Seller is Financing: This is common in transactions where the Buyer may have difficulty obtaining traditional financing through a bank, so the Seller steps in to act as the lender. The Seller has the right to request documentation to assess the Buyer’s financial situation, just as a bank would.
• When Not Applicable: If the Buyer is obtaining financing through a traditional lender (like a bank or credit union) and the Seller is not providing any financing, this clause will be marked N/A (Not Applicable).

This ensures that the Seller has enough information to make an informed decision before agreeing to provide the financing, while also protecting the Buyer by establishing a clear process.

Item No. 17, Reference §5: Disapproval of Buyer’s Credit Information Deadline

This clause applies only if the Seller is providing financing for the Buyer (Owner Carry Financing). Here’s a breakdown of what this means:

• Seller’s Right to Decline: On this specified date, the Seller can review the financial and credit information provided by the Buyer and decide whether to approve or decline the financing arrangement. If the Seller finds the Buyer’s financial information or credit history unsatisfactory, the Seller has the right to decline the Buyer’s request for financing.
• Termination Based on Credit Information: If the Seller is not satisfied with the Buyer’s creditworthiness or financial standing, the Seller may terminate the contract without penalty, as the agreement was contingent on the Buyer meeting certain credit or financial qualifications.
• When Not Applicable: If the Seller is not providing financing (e.g., the Buyer is obtaining financing through a traditional lender like a bank), this section would be marked N/A(Not Applicable), as it doesn’t apply in that situation.

This clause provides an important protection for the Seller in situations where they are financing the Buyer, ensuring the Seller does not proceed with the contract if the financial terms do not align with their expectations.

Item No. 18, Reference §5: Existing Loan Deadline

The Existing Loan Deadline applies in situations where the Buyer is assuming the Seller’s existing loan (i.e., the Buyer is taking over the Seller’s mortgage). Here’s what this means:

• Seller’s Obligation: By this deadline, the Seller is required to provide all the current loan documents related to their mortgage to the Buyer. This includes details about the loan, such as the loan balance, terms, interest rate, and any other conditions attached to the mortgage.
• Buyer’s Right to Review: The Buyermust review these documents to ensure they are comfortable with assuming the existing loan. This allows the Buyer to assess whether the loan terms are acceptable to them and whether they want to proceed with taking on the Seller’s loan.
• When Not Applicable: If the Buyer is not assuming the Seller’s existing loan, this section would be marked N/A (Not Applicable), as there would be no need for the Seller to provide these documents.

This clause is an important part of the process for buyers who plan to assume a mortgage, as it gives them an opportunity to evaluate the existing loan before moving forward with the purchase.

Item No. 19, Reference §5: Existing Loan Termination Deadline

The Existing Loan Termination Deadline applies when the Buyer is assumingtheSeller’s existing loan. Here’s what it entails:

• Buyer’s Right to Terminate: If the Buyer is not satisfied with the terms and conditions of the loan they would be assuming, or if they cannot qualify for the loan, they have the right to terminate the contract by this deadline.
• Assessment of Loan Terms: The Buyer has the option to review the loan documents provided by the Seller (under the Existing Loan Deadline) and ensure they agree with the terms. If there is an issue—such as an unfavorable interest rate, payment structure, or other conditions—the Buyercan terminate the contract based on this clause.
• If Not Applicable: If the Buyer is not assumingtheSeller’s existing loan, this clause would be marked N/A (Not Applicable). In that case, it doesn’t apply to the transaction because no assumption of an existing loan is involved.

This section protects the Buyer, ensuring they are not locked into terms that they find unfavorable or unaffordable when assuming a mortgage from the Seller.

Item No. 20, Reference §5: Loan Transfer Approval Deadline

The Seller’s Lender Approval Deadline applies when the Buyer is assuming the Seller’s existing loan. Here’s how it works:

• Lender’s Approval Requirement: This deadline sets the date by which the Seller’s lender must approvethe Buyer for assuming the existing loan. If the Buyerplans to take over the Seller’s loan, the lender must agree to the assumption, including the Buyer’s ability to meet the loan’s terms.
• Buyer’s Responsibility: The Buyer must ensure they meet the lender’s qualifications and proceed with the necessary paperwork to get the lender’s approval. If the lender does not approve the assumption, this could affect the contract.
• If Not Applicable: If the Buyerisnot assumingtheSeller’s loan, this clause will be marked N/A (Not Applicable), as it only applies when the Buyer is taking over the Seller’s existing financing.

This clause ensures that the Seller’s lender has the final say in whether the Buyer can take on the loan, offering protection to the Sellerand ensuring that the loan assumption is approved before moving forward.

Item No. 21, Reference §4: Seller or Private Financing Deadline

The Private Financing Approval Deadline applies when the Seller or another private party is providing financing to the Buyer for the purchase. Here’s how it works:

• Buyer’s Decision: The Buyer must decide by this deadline whether the financing being offered by the Selleror another private party is acceptable to them. This includes reviewing the loan terms, conditions, interest rates, repayment schedules, and any other relevant details.
• If Not Applicable: If the Buyer is using traditional financing (through a bank or other lender), or if the Seller is not offering private financing, this section will be marked N/A (Not Applicable).

This deadline gives the Buyer the opportunity to evaluate whether the private financing option meets their needs. If it doesn’t, the Buyercan choose to terminate the contract.

Appraisal

Item No. 22, Reference §6: Appraisal Deadline

The Appraisal Report Deadline is the date by which the appraisal report must be completed and provided to both the Lender and Buyer. Here’s how it works:

• Appraisal Requirement: In most cases, the Lenderwill require an appraisal to determine the current market value of the property. The appraisal helps the Lender assess whether the property is worth the loan amount being requested by the Buyer.
• Completion and Delivery: The appraisal must be completed and delivered to both the LenderandBuyer by the specified date in the contract.
• Cost: The cost of the appraisal is typically covered by the Buyer as part of their closing costs. The Buyer’s Lender often arranges for the appraisal to be scheduled.

This deadline ensures that the Buyer has sufficient time to review the appraisal report before proceeding with the purchase. If the appraisal report shows issues or if the value is lower than expected, the Buyer may have the right to object or terminate the contract.

Item No. 23, Reference §6: Appraisal Objection Deadline

The Appraisal Objection Deadline is the date by which the Buyer must take action if the appraised value of the property comes in lower than the agreed-upon purchase price. Here’s what happens at this point:

• Appraisal Discrepancy: If the property’s appraised value is lower than the purchase price, the Buyerhas the right to object to the appraisal.
• Right to Terminate: The Buyer can choose to terminate the contract if the purchase price exceeds the appraised value of the property as determined by the appraiser.
• Written Notice: If the Buyer wishes to terminate the contract based on the appraisal, they must provide written notice to the Sellerby the Appraisal Objection Deadline.

This deadline allows the Buyer to decide whether they want to move forward with the purchase or back out due to the valuation discrepancy.

If the Buyer doesn’t object by this deadline, they would typically move forward with the contract despite the lower appraisal value.

Item No. 24, Reference §6: Appraisal Resolution Deadline

If the appraisal comes in lower than the agreed-upon purchase price, there are typically three possible outcomes:

1. Seller Reduces the Price: The Seller agrees to lower the price to match the appraised value, allowing the contract to move forward.
2. Buyer Pays the Difference: The Buyer decides to pay the difference in cash between the appraised value and the purchase price, thus keeping the original terms of the contract intact.
3. Contract Terminates: If no agreement can be reached by the deadline, the contract will terminate, and the Buyer can walk away without penalty.

It’s important to have open communication during this phase, as the appraisal can impact the financing and the final sale terms.

Survey

Item No. 25, Reference §9: New ILC or New Survey Deadline

An Improvement Location Certificate (ILC) or Survey is usually required for properties with larger or more complex parcels of land, such as rural or irregularly shaped lots. The purpose of these documents is to provide a detailed representation of the property’s boundaries, any structures, easements, encroachments, or other relevant features that might affect the land.

Typically, the Title Company or Lender may request an ILC or survey to ensure the property is being properly conveyed and there are no legal issues with boundaries or encroachments. For most urban or suburban properties, especially those on smaller, regular lots, these documents are rarely necessary, which is why you often see “N/A” in the contract in such cases.

Item No. 26, Reference §9: New ILC or New Survey Objection Deadline

If an ILC or Survey is performed, this deadline gives the Buyer the opportunity to review the results and raise any objections if there are issues, such as:

• Boundary disputes or discrepancies
• Encroachments (e.g., if a neighbor’s fence or structure is built on the property)
• Easements that weren’t previously disclosed
• Building setbacks that might prevent future construction

The Buyer can use this period to address concerns and either request corrections, ask the Seller to resolve the issues, or possibly terminate the contract if the findings are significant enough to change the Buyer’s decision to move forward.

This deadline is an important protection for the Buyer to make sure there are no surprises down the line regarding property boundaries or legal encumbrances.

Item No. 27, Reference §9: New ILC or New Survey Resolution Deadline

If the Buyer objects to the findings of the ILC or Survey by the objection deadline, they and the Seller must work together to reach a resolution by this secondary Resolution Deadline. This could include:

• Addressing boundary issues (e.g., correcting the property description)
• Removing encroachments (e.g., if a neighbor’s structure is partially on the Buyer’s land)
• Resolving easements that weren’t disclosed

If they cannot agree on how to handle the objection, the contract will automatically terminate, unless the Buyer decides to withdraw their objection before that termination happens.

This resolution process ensures that the Buyer has a clear path to address concerns raised by the ILC or Survey, but also creates a hard deadline by which both parties need to settle any disputes—otherwise, the deal is off.

Inspection and Due Diligence

Item No. 28, Reference §2: Water Rights Examination Deadline

If Water Rights are associated with the property, the Buyer has a set deadline to review and accept those rights. Water rights can be a significant part of rural properties or properties with agricultural, irrigation, or water access needs. The Buyer will need to:

• Understand the water rights: Are they transferrable? Are there any restrictions or agreements tied to them?
• Ensure the rights align with their intended use of the property (for example, for farming, livestock, or irrigation purposes).

If the Buyer does not accept the water rights by this deadline, they may have the option to terminate the contract or renegotiate terms, depending on how the contract is structured. The deadline ensures that the Buyer has time to fully assess these important aspects before finalizing the purchase.

Item No. 29, Reference §8: Mineral Rights Examination Deadline

If Mineral Rights are included with the property, the Buyer has the right to review and accept those rights by the specified deadline. Mineral rights can affect the use, value, and future of the property, especially if there are potential resources like oil, gas, or minerals beneath the land. Here’s what the Buyer should consider:

• Understanding what mineral rights entail: Does the Buyer get full rights to extract minerals or are there limitations? Are there any existing leases or agreements that could affect access to these resources?
• Impact on property use: For example, the presence of mineral extraction may impact how the land can be used or developed.
• Potential for future profits: Mineral rights can sometimes be a source of income if the property contains valuable resources, but they could also be subject to legal and operational complexities.

If the Buyer objects to or does not accept the mineral rights by the deadline, they may be able to terminate the contract or renegotiate the terms, depending on what was agreed upon in the contract. This deadline ensures the Buyer has enough time to fully assess the implications of owning or not owning the mineral rights.

Item 30, Reference §10: Inspection Termination Deadline

This is an important date for the Buyer, as it provides an opportunity to terminate the contract if there are concerns uncovered during the inspection of the property. Here’s what it involves:

1. Inspection Objection: The Buyer has the right to raise objections to the condition of the property based on the inspection report. If the Buyer is not satisfied with the findings, they can request repairs, renegotiate the price, or choose to terminate the contract.
2. Waiving the Inspection Objection: In some cases, the Buyer may waive their right to object or ask for repairs after the inspection. However, even if the inspection objection is waived, the Buyer still has the option to terminate the contract if they are not satisfied with the inspection report by the specified date.
3. Earnest Money Return: If the Buyer terminates the contract due to inspection concerns, they typically can get their earnest money back, provided the termination is done by the deadline and according to the terms of the contract.

This deadline ensures that the Buyer has enough time to review the inspection report and make informed decisions about whether they are still comfortable proceeding with the purchase, or if they need to walk away from the deal.

Item 31, Reference §10: Inspection Objection Deadline

The Inspection Objection Deadline is crucial for the Buyer. It marks the final date by which the Buyer must provide a written notice to the Seller regarding any issues found during the inspection that they want corrected. Here’s a breakdown:

1. Inspection Right: Every Buyer has the right to hire a professional inspector to assess the property. This typically covers a range of areas like the foundation, roof, plumbing, electrical systems, and more.
2. Objection to Issues: If the inspection reveals any unsatisfactory conditions (e.g., structural problems, safety concerns, etc.), the Buyer has the option to object to these issues. The Buyer must submit a written notice to the Sellerby the Inspection Objection Deadline, listing the specific problems found.
3. Proposed Action: The Buyer’s notice must not only outline the issues but also provide a proposed solution—such as requesting repairs, asking for credits, or renegotiating the price.
4. Seller’s Response: After receiving the Inspection Objection, the Seller has the option to accept, deny, or negotiate the proposed fixes. If they can’t come to an agreement, the Buyer may choose to terminate the contract.

The goal of this deadline is to ensure that both parties are clear on any necessary repairs or changes before moving forward with the contract, protecting the Buyer from unexpected costs or issues.

Item No. 32, Reference §10: Inspection Resolution Deadline

The Inspection Resolution Deadline is the date by which the Buyer and Seller must come to a mutual agreement regarding any issues raised in the Inspection Objection. This is a crucial step in the negotiation process.

Here’s what typically happens by this deadline:

1. Negotiation of Terms: After the Buyer submits an objection, both parties can negotiate the terms to resolve the inspection-related issues. This might involve:
   • Repairs: The Seller may agree to fix certain problems found during the inspection.
   • Price Reduction: The Seller may agree to lower the purchase price to account for repairs the Buyer will handle themselves.
   • Seller Credits: The Seller may offer a credit to the Buyer, either to cover repairs or other concerns.

2. Agreement: If both parties can agree on the terms for resolution, the contract can continue.
3. Failure to Agree: If they cannot come to an agreement by this date, the contract will automatically terminate. This allows the Buyer to walk away from the deal and receive their earnest money back, as long as they haven’t waived their rights in this regard.

The Inspection Resolution Deadline ensures that both parties have enough time to settle any disputes from the inspection and move forward, or to cancel the deal if they cannot reach a satisfactory resolution.

Item No. 33, Reference §10: Property Insurance Termination Deadline

The Insurance Objection Deadline is the date by which the Buyer must confirm that they are able to obtain property insurance for the home, as required by their Lender (if financing is involved). This includes verifying:

1. Coverage: Ensuring the insurance policy covers the property adequately, including any necessary add-ons (like flood or earthquake insurance, depending on the location).
2. Terms: Checking the insurance ratesand terms to make sure they are acceptable to the Buyer and fit within their budget.
3. Objection Right: If the Buyer is not satisfied with the insurance terms or if there are any adverse conditions found with the property’s insurability (such as a high risk of natural disasters or other factors making it difficult or costly to insure), the Buyer can terminate the contract. They are entitled to a refund of their earnest money if they decide to back out before this deadline.

It is crucial for the Buyer to verify that they can secure insurance before this date to avoid delays or complications with closing. If the Buyer is unable to secure acceptable insurance, they are protected by this deadline.

Item No. 34, Reference §10: Due Diligence Documents Delivery Deadline

The Seller Documentation Deadline is the date by which the Seller is required to provide the Buyer with certain documents related to the property. These documents are essential for the Buyer to complete their due diligence before finalizing the purchase. Some examples of the types of documents that may need to be provided include:

1. Leases: If the property is rented out or has tenants, copies of any existing lease agreements should be provided.
2. Completed Contract Work: If any work or renovations have been completed on the property, the Seller should provide documentation such as contracts or receipts for that work.
3. Warranties: Any warranties related to appliances, systems, or recent repairs that are still valid should be given to the Buyer.
4. Permits: If there were any permits or inspections associated with repairs, renovations, or construction done on the property, these should also be provided.

The Buyer will use these documents to assess the property’s condition, any ongoing obligations (like leases or warranties), and to ensure that all work done on the property was legal and properly permitted. If the Seller fails to provide these documents by the agreed-upon date, the Buyer may have the option to object or terminate the contract, depending on the terms of the agreement.

Item No. 35, Reference §10: Due Diligence Documents Objection Deadline

The Due Diligence Documents Objection Deadline is the date by which the Buyer must notify the Seller if any of the required due diligence documents (such as leases, permits, warranties, completed contract work, etc.) are unsatisfactory or have not been provided.

If the Seller fails to supply these documents or if the Buyer finds issues with the documents provided (such as discrepancies, missing information, or unfavorable terms), the Buyer has the right to:

1. Object: The Buyer can formally object to the contract based on the unsatisfactory documents. In this case, the parties will need to negotiate and resolve the issues.
2. Terminate: If the issues cannot be resolved, or if the documents are not provided, the Buyer may terminate the contract and receive their earnest money back.

It is crucial for the Buyer to review these documents carefully and take action by the specified deadline to ensure their concerns are addressed before the contract moves forward.

Item No. 36, Reference §10: Due Diligence Documents Resolution Deadline

The Due Diligence Documents Resolution Deadline is the date by which the Buyer and Seller must come to an agreement regarding any objections the Buyer has raised concerning the Due Diligence Documents. If the Buyer finds the documents unsatisfactory or incomplete and has raised objections, both parties must negotiate and reach a solution by this date.

If no resolution is reached by the deadline, the purchase contract will automatically terminate, and the Buyer will be entitled to a refund of their earnest money.

It’s crucial for both parties to communicate and resolve any issues promptly before the deadline to prevent the contract from ending.

Item No. 37, Reference §10: Conditional Sale Deadline

The Sale of Buyer’s Property Deadline applies when the Buyer is contingent upon selling their current property in order to proceed with the purchase of the new property. If the Buyer is unable to sell and close on their existing property by this deadline, they have the right to terminate the contract without penalty.

This gives the Buyer protection in case they are unable to complete the sale of their property in time to move forward with the purchase of the property under contract. If the Buyer terminates based on this contingency, they are typically entitled to a refund of their earnest money.

Item No. 38, Reference §10: Lead-Based Paint Termination Deadline

The Lead-Based Paint Deadline applies when the property was built before 1978, as federal law requires the Seller to disclose any known information regarding lead-based paint. If the Buyer is not satisfied with the disclosure or the results of a lead-based paint inspection, they have the right to terminate the contract by this deadline and receive their earnest money back.

This contingency protects the Buyer in case they discover lead-based paint hazards or if the Seller does not provide the required lead-based paint disclosure. It allows the Buyer to opt out of the contract without financial loss if the lead-based paint situation is unsatisfactory.

Closing and Possession

Item No. 39, Reference §12: Closing Date

The Closing Date is the final step in the home-buying process, where ownership of the property is officially transferred from the Seller to the Buyer. On this date:

• The Buyer signs the loan documents (if applicable) and finalizes the financing.
• The Seller signs the deed to transfer ownership.
• All required payments, such as the purchase price and closing costs, are made.
• The deed is recorded with the county, officially transferring title to the Buyer.

Once everything is completed and recorded, the Buyer can take possession of the property. It’s crucial that all previous deadlines (inspection, financing, etc.) are met before closing, as any unresolved issues could delay or cancel the closing. After this date, the transaction is complete, and the Buyer is legally the new owner of the property.

Item No. 40, Reference §17: Possession Date

The Possession Date is typically the same as the Closing Date, but it is listed separately to allow for situations where the Buyer may not take possession of the property immediately after closing. On this date:

• The Buyer is officially allowed to move into the property.
• The Seller must vacate the property, and any remaining personal belongings must be removed.
• The Buyer receives the keys to the property, and they have full control of the home.

However, in some cases, possession may be delayed if the Buyer and Seller have agreed to different terms. For example, the Seller might need additional time to move out, or the Buyer may choose to delay possession for specific reasons. This date marks the transition of possession, regardless of the closing time.

Item No. 41, Reference §17: Possession Time

The Possession Time is typically listed as “Following Closing” in the contract, which means that the keys and possession of the property are handed over to the Buyers immediately after the closing process is complete. This time is generally set to occur once the closing paperwork is finalized and funds have been transferred, confirming that the transaction has been officially completed.

At this point:

• The Seller must vacate the property.
• The Buyer receives the keys, garage openers, and any other necessary access items.
• The Buyer has full control and rights to the property.

This is often a smooth transition, though some arrangements might include a delay, depending on the specifics agreed upon between the Buyer and Seller.

Item No. 42, Reference §27: Acceptance Deadline Date

The Acceptance Deadline is the date by which the Seller must respond to the Buyer’s offer. If the Seller does not respond by this deadline, the offer may expire, and the Buyer will no longer be under contract. This deadline is typically set 1-3 days after the Buyer submits their offer, allowing the Seller a reasonable amount of time to consider it, make a counteroffer, or accept it as-is.

If the Seller accepts the offer, the contract is considered binding and both parties are committed to the terms. If the Seller does not respond by the Acceptance Deadline, the Buyer is free to move forward with other options.

Item No. 43, Reference §27: Acceptance Deadline Time

The Acceptance Deadline (referenced in Item 42) is the specific time on the date that the Buyer’s offer must be accepted by the Seller. If the Seller does not accept the offer by this exact time, the offer expires and is no longer valid.