Daily Archives: February 27, 2012

Bedford NY Real Estate | Real estate contract – Wikipedia, the free encyclopedia

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A real estate contract is a contract for the purchase/sale, exchange, or other conveyance of real estate between parties. Real estate called leasehold estate is actually a rental of real property such as an apartment, and leases (rental contracts) cover such rentals since they typically do not result in recordable deeds. Freehold (“More permanent”) conveyances of real estate are covered by real estate contracts, including conveying fee simple title, life estates, remainder estates, and freehold easements. Real estate contracts are typically bilateral contracts (i. e., agreed to by two parties) and should have the legal requirements specified by contract law in general and should also be in writing to be enforceable.

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[edit] Details explained on the contract

[edit] In writing

In many countries, real estate contracts must be in writing to be enforceable. In the United States the Statute of Frauds require real estate contracts to be in writing to be enforceable. In South Africa, the Alienation of Land Act specifies that any agreement of sale of immovable property must be in writing.

Additionally, a real estate contract must:

  • Identify the parties: The full name of the parties must be on the contract. In a sales contract, the parties are the seller(s) and buyer(s) of the real estate, who are often called the principals to distinguish them from real estate agents, who are effectively their intermediaries and representatives in negotiation of the price. If there are any real estate agents brokering the sale, they are typically listed also as the real estate brokers/agents who would earn the commission from the sale.
  • Identify the real estate (property): At least the address, but preferably the legal description must be on the contract.
  • Identify the purchase price: The amount of the sales price or a reasonably ascertainable figure (an appraisal to be completed at a future date) must be on the contract.
  • Include signatures: A real estate contract must be entered into voluntarily (not by force), and must be signed by the parties, to be enforceable.
  • Have a legal purpose: The contract is void if it calls for illegal action.
  • Involve Competent parties: Mentally impaired, drugged persons, etc. cannot enter into a contract. Contracts in which at least one of the parties is a minor are voidable by the minor.
  • Reflect a meeting of the minds: Each side must be clear and agree as to the essential details, rights, and obligations of the contract.
  • Include Consideration: Consideration is something of value bargained for in exchange of the real estate. Money is the most common form of consideration, but other consideration of value, such as other property in exchange, or a promise to perform (i.e. a promise to pay) is also satisfactory.

Notarization by a notary public is normally not required for a real estate contract, but many recording offices require that a seller’s or conveyor’s signature on a deed be notarized to record the deed. The real estate contract is typically not recorded with the government, although statements or declarations of the price paid are commonly required to be submitted to the recorder’s office.

Sometimes real estate contracts will provide for a lawyer review period of several days after the signing by the parties to check the provisions of the contract and counterpropose any that are unsuitable.

If there are any real estate brokers/agents brokering the sale, the buyer’s agent will often fill in the blanks on a standard contract form for the buyer(s) and seller(s) to sign. The broker commonly gets such contract forms from a real estate association he/she belongs to. When both buyer and seller have agreed to the contract by signing it, the broker provides copies of the signed contract to the buyer and seller.

[edit] Offer and acceptance

As may be the case with other contracts, real estate contracts may be formed by one party making an offer and another party accepting the offer. To be enforceable, the offers and acceptances must be in writing (Statute of Frauds, Common Law)and signed by the parties agreeing to the contract. Often, the party making the offer prepares a written real estate contract, signs it, and transmits it to the other party who would accept the offer by signing the contract. As with all other types of legal offers, the other party may accept the offer, reject it – in which case the offer is terminated, make a counteroffer – in which case the original offer is terminated, or not respond to the offer – in which case the offer terminates by the expiration date in it. Before the offer (or counteroffer) is accepted, the offering (or countering) party can withdraw it. A counteroffer may be countered with yet another offer, and a counteroffering process may go on indefinitely between the parties.

To be enforceable, a real estate contract must possess original signatures by the parties and any alterations to the contract must be initialed by all the parties involved. If the original offer is marked up and initialed by the party receiving it, then signed, this is not an offer and acceptance but a counter-offer.

[edit] Deed specified

A real estate contract typically does not convey or transfer ownership of real estate by itself. A different document called a deed is used to convey real estate. In a real estate contract, the type of deed to be used to convey the real estate may be specified, such as a warranty deed or a quitclaim deed. If a deed type is not specifically mentioned, “marketable title” may be specified, implying a warranty deed should be provided. Lenders will insist on a warranty deed. Any liens or other encumbrances on the title to the real estate should be mentioned up front in the real estate contract, so the presence of these deficiencies would not be a reason for voiding the contract at or before the closing. If the liens are not cleared before by the time of the closing, then the deed should specifically have an exception(s) listed for the lien(s) not cleared.

The buyer(s) signing the real estate contract are liable (legally responsible) for providing the promised consideration for the real estate, which is typically money in the amount of the purchase price. However, the details about the type of ownership may not be specified in the contract. Sometimes, signing buyer(s) may direct a lawyer preparing the deed separately what type of ownership to list on the deed and may decide to add a joint owner(s), such as a spouse, to the deed. For example, types of joint ownership (title) may include tenancy in common, joint tenancy with right of survivorship, or joint tenancy by the entireties. Another possibility is ownership in trust instead of direct ownership.

[edit] Contingencies

Contingencies are conditions which must be met if a contract is to be performed.

Contingencies that suspend the contract until certain events occur are known as “suspensive conditions”. Contingencies that cancel the contract if certain event occur are known as “resolutive conditions”.

Most contracts of sale contain contingencies of some kind or another, because few people can afford to enter into a real estate purchase without them. But it is possible for a real estate contract not to have any contingencies.

Some types of contingencies which can appear in a real estate contract include:

  • Mortgage contingency – Performance of the contract (purchase of the real estate) is contingent upon or subject to the buyer getting a mortgage loan for the purchase. Usually such a contingency calls for a buyer to apply for a loan within a certain period of time after the contract is signed. Since most people who buy a house require financing to complete their purchase, mortgage contingencies are one of the most common type of contingencies in real property contracts. If the financing is not secured, the buyer may unilaterally cancel the contract by stating that his or her condition has not or will not be satisfied or allow the contract to expire by declining to waive the condition within the specified time period.
  • Inspection contingency – Another buyer’s condition. Purchase of the real estate is contingent upon a satisfactory inspection of the real property revealing no significant defects. Contingencies could also be made on the satisfactory repair of a certain item associated with the real estate.
  • another sale contingency – Purchase or sale of the real estate is contingent on a successful sale or purchase of another piece of real estate. The successful sale of another house may be needed to finance the purchase of a new one.
  • appraisal contingency – Purchase of the real estate is contingent upon the contract price being at or below a fair market value determined by an appraisal. Lenders will often not lend more than a certain percentage (fraction) of the appraised value, so such a contingency may be useful for a buyer.
  • 72-hour kick out contingency – Seller contingency, in which the seller accepts a contract from a buyer with a contingency (typically a home sale or rent contingency where the buyer conditions the sale on their ability to find a buyer or renter for their current property prior to settlement). The seller retains the right to sell the property to another party if he so chooses after giving the buyer 72 hours notice to remove their contingency. The buyer will then either remove their contingency and provide proof that they can consummate the sale or will release the seller from their contract and allow the seller to move forward with the new contract.

[edit] Date of closing and possession

A typical real estate contract specifies a date by which the closing must occur. The closing is the event in which the money (or other consideration) for the real estate is paid for and title (ownership) of the real estate is conveyed from the seller(s) to the buyer(s). The conveyance is done by the seller(s) signing a deed for buyer(s) or their attorneys or other agents to record the transfer of ownership. Often other paperwork is necessary at the closing.

The date of the closing is normally also the date when possession of the real estate is transferred from the seller(s) to the buyer(s). However, the real estate contract can specify a different date when possession changes hands. Transfer of possession of a house, condominium, or building is usually accomplished by handing over the key(s) to it. The contract may have provisions in case the seller(s) hold over possession beyond the agreed date. [WHAT legal proviisions can be made for the protection of buyer in ‘escrow?’–DB]

The contract can also specify which party pays for what closing cost(s). If the contract does not specify, then there are certain customary defaults depending on law, common law (judicial precedents), location, and other orders or agreements, regarding who pays for which closing costs.

[edit] Condition of property

A real estate contract may specify in what condition of the property should be when conveying the title or transferring possession. For example, the contract may say that the property is sold as is, especially if demolition is intended. Alternatively there may be a representation or a warranty (guarantee) regarding the condition of the house, building, or some part of it such as affixed appliances, HVAC system, etc. Sometimes a separate disclosure form specified by a government entity is also used. The contract could also specify any personal property (non-real property) items which are to be included with the deal, such as washer and dryer which are normally detachable from the house. Utility meters, electrical wiring systems, fuse or circuit breaker boxes, plumbing, furnaces, water heaters, sinks, toilets, bathtubs, and most central air conditioning systems are normally considered to be attached to a house or building and would normally be included with the real property by default.

[edit] Riders

Riders (or addenda) are special attachments (separate sheets) that become part of the contract in certain situations.

[edit] Earnest money deposit

Although, it is not absolutely required for a valid real estate offer or a contract, an earnest money deposit from the buyer(s) customarily accompanies an offer to buy real estate. The amount, a small fraction of the total price, is listed in the contract, with the remainder of the cost to be paid at the closing.

[edit] Financial qualifications of buyer(s)

The better the financial qualification of the buyer(s) is, the more likely the closing will be successfully completed, which is typically the goal of the seller. Any documentation demonstrating financial qualifications of the buyer(s), such as mortgage loan pre-approval or pre-qualification, may accompany a real estate offer to buy along with an earnest money check. When there are competing offers or when a lower offer is presented, the seller may be more likely to accept an offer from a buyer demonstrating evidence of being well qualified than from a buyer without such evidence.[citation needed]

[edit] References

[edit] See also

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Home Inspection Checklist – General Home Inspection Checklist Items | Pound Ridge Real Estate

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Home buyers have it drilled into their heads that they need to get a home inspection. In California, for example, real estate agents advise home buyers to do a home inspection 15 ways from Sunday. Our purchase contracts contain two pages that talk about doing a home inspection, and those two pages are repeated in the buyer’s broker agreement. That’s just for starters.

A home buyer does not close escrow without hearing about the need for a home inspection. But what does a home inspection report disclose? Home buyers are often clueless about home construction and its components, and have difficulty deciphering home inspection reports. Many don’t know how to figure out which types of defects are serious or whether their home inspector checked all the essentials. But, by George, they got that home inspection!

Home Inspection Checklist Comparisons

All home inspections are different and can vary dramatically from state to state, as well as across counties and cities. Much depends on the home inspector and which association, if any, to which the home inspector belongs. Because I am most familiar with home inspections conducted in accordance with the standards of practice established by the National Association of Certified Home Inspectors, the following information is based on NACHI guidelines.

Home Inspection Checklist of Items Not Inspected

Understand that California home inspectors are not licensed, nor are they licensed in many states. However, a home inspector’s standard practice typically does not include the following, for which a specific license to inspect and identify is required:

General Home Inspection Checklist Items

  • Structural Elements.
    Construction of walls, ceilings, floors, roof and foundation.

  • Exterior Evaluation.
    Wall covering, landscaping, grading, elevation, drainage, driveways, fences, sidewalks, fascia, trim, doors, windows, lights and exterior receptacles.

  • Roof and Attic.
    Framing, ventilation, type of roof construction, flashing and gutters. It does not include a guarantee of roof condition nor a roof certification.

  • Plumbing.
    Identification of pipe materials used for potable, drain, waste and vent pipes. including condition. Toilets, showers, sinks, faucets and traps. It does not include a sewer inspection.

  • Systems and Components.
    Water heaters, furnaces, air conditioning, duct work, chimney, fireplace and sprinklers.

  • Electrical.
    Main panel, circuit breakers, types of wiring, grounding, exhaust fans, receptacles, ceiling fans and light fixtures.

  • Appliances.
    Dishwasher, range and oven, built-in microwaves, garbage disposal and, yes, even smoke detectors.

  • Garage.
    Slab, walls, ceiling, vents, entry, firewall, garage door, openers, lights, receptacles, exterior, windows and roof.

Home Inspection Checklist Items Needing Service

Home inspection reports do not describe the condition of every component if it’s in excellent shape, but should note every item that is defective or needing service. The serious problems are:

  • Health and safety issues
  • Roofs with a short life expectancy
  • Furnace / A/C malfunctions
  • Foundation deficiencies
  • Moisture / drainage issues

Home Inspection Checklist Items Sellers Should Fix

If you have a choice, it is smarter to hire your own contractors and supervise repairs. Before issuing a formal request to repair, consider the seller’s incentive to hire the cheapest contractor and to replace appliances with the least expensive brands.

Although home inspectors are reluctant to and, in many cases, refuse to disclose repair costs, call a contractor to determine the scope and expense to fix minor problems yourself. No home is perfect. Every home will have issues on a home inspection. Even new homes.

A repair issue that will be be a deal breaker for a first-time home buyer, causing the buyer to cancel the contract, will not faze a home buyer versed in home repair. Talk to your agent, family, friends and call a few contractors to discuss which types of defects are minor. Perhaps a simple solution is available such as replacing a $1.99 receptacle, which can resolve many outlet problems.

Pat yourself on the back, too, for getting a home inspection. Some buyers feel a home inspection is unnecessary, especially if they are buying new construction. If a light switch doesn’t work or the air conditioner blows out hot air, those are problems you can see and test. The problems that aren’t readily identifiable to you such as code violations, a furnace that leaks carbon monoxide or a failing chimney, are the types of defects a home inspector could identify in a new home. Builders’ contractors make mistakes, too.

Watch Weintraub’s Video about What Happens at a Home Inspection.

At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

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Chappaqua Real Estate | Consistent Branding Means Survival

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To ensure the future growth and profitability of your company, you must use a brand management strategy to continually build, strengthen and revitalize your brand. Building and maintaining a valuable brand isn’t easy.

Brand positioning is a process, not an event. Your brand blueprint (vision, areas of focus and touch points) and your brand voice (main messages, approach to language, type, color and imagery) come from ongoing emotional connections made with your customers every day.

You must focus on the emotional aspects of your brand – the proposition, making a quick and intuitive emotional connection with your customers that creates awareness, has influence, and elicits their buy-in and loyalty.

Exceptional brand performance is no accident. Implementing a strong, actionable brand plan is crucial to achieving standout market performance. You can’t simply rely on the functional differences of your products or services. Customers have too many choices. Differentiating and communicating your brand’s unique value to the marketplace is essential. You need to craft messages that stir up specific words or emotions when someone hears or sees your company’s name, products or services.

Your brand serves as a powerful motivation tool to all your stakeholders such as employees, investors and customers. Companies are constantly looking for ways to grow their brand image, using new ideas and initiatives in the market. Many are creating innovative ways for building their brand and pushing boundaries to influence customer buying behavior, getting their messages across clearly and effectively. Branding today must include social media across multiple platforms such as Twitter, Facebook, LinkedIn and many more social communities.

Customer loyalty, commitment and collaboration are the key to business success in today’s competitive environment. Brand strategies need to be relevant, have a differentiated offer and reflect values that are credible and believable. This is only achievable by ensuring consistency in product and service quality with your brand promise.

Your branding identity strategy will be more successful if you closely target your market. Focus on getting your company name and your products or services in front of your current customers and best potential customers. An effective brand marketing strategy creates the kind of loyalty that leaves customers indifferent to the advertising and marketing factors of your competitors.

Branding is the intangible part of your business. A brand, unlike your product or service offerings, is a collection of ideas, feelings, word associations and visuals that represent your value proposition. Customers choose one particular brand over another because of its intrinsic value. Your brand serves as the link between your product’s promise and the customer’s desire.

Branding is a way to differentiate your company, product or service from competitors. It means having a personality that is unique and appeals to customers. This would include your brand name, graphic representation, tagline, key descriptive phases and brand story.

Well-focused and consistent attention to brand identity marketing will create a favorable, memorable position of your products or services in the minds of your prospects and customers. You must brand consistently to compete and become a factor in the industry sector in which your company participates.

A powerful brand identity and active brand strategy can prevent poor market awareness, insufficient product or service recognition, weak customer retention, lack of loyalty, inadequate lead generation flow, longer-than-expected selling cycles and low product valuation.

Whether you are a new or established business, one looking to refresh or solidify your brand, your company’s brand identity is crucial to your company’s success. A strong brand communicates to your customers a promise and expresses your unique value through words and images.

Developing your brand doesn’t happen overnight. Consistent communications that differentiate your company are imperative to the success and life of your brand.

In today’s fast-paced, multimedia world, it is more important than ever to promote recognition of your company, and its product or service by stressing the quality and the unique value of your brand.

Author:      Jennifer Dinehart on the Web Jennifer Dinehart RSS Feed

Jennifer is an award-winning communicator and brand strategist. She is president of Concentre Communications, Inc. Drawing on 25 years of broad international communications and marketing experience, Jennifer leads the firm’s client engagement teams and provides senior-level strategic counsel and brand marketing expertise. Her broad background gives her a unique strategic… View full profile

This article originally appeared on http://concentreblog.wordpress.com and has been republished with permission.

Find out how to syndicate your content with Business 2 Community.

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The Six Elements of Human Behavior That Drive Social Media | Armonk Homes

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You have to love a person who describes herself as somebody who studies “the dark side of Customer Management.” Ana Isabel Canhoto is just such as person. An instructor at Oxford Brookes University, Ana is a Twitter friend who recently shared with me highlights of a speech by Paul Fennemore, a Managing Partner at Viapoint.

Fennemore contends that every social media strategist needs to consider six aspects of human behavior if they are to understand the drivers of social media. Social Media may be a relatively recent technological phenomenon, but the behavioral drivers that explain why and how the various platforms are used are old. This post explains, in very basic terms, these six key drivers: altruism, hedonism, homophily, memetics, narcissism and tribalism.

Altruism

The unselfish devotion to the welfare of others. Application: Social network users readily share information with other users. They share information simply because they believe it may be helpful. This behaviour occurs even when the users do not know who benefits from the information being shared. Example: A study showed that altruism is a primary reason why many travelers selflessly share experiences to help others have a more enjoyable vacation.

Hedonism

A belief that pleasure is the main – or only — goal in life Application: Hedonism can affect social media in two ways: 1) People use social media because doing so is an enjoyable activity. 2) People use social media because it provides a novel way of accessing activities that give them pleasure, such as meeting people. Example: To the dismay of idealists, research shows that young people are usually not using the social web to change the world. They are using it to experience a digital nirvana of a vast supply of movies, music, instant communication and of course, sexual opportunity.

Homophily

The tendency of human beings to associate with others similar to them. “Birds of a feather flock together.” Application: People tend to join and become attached to social networks whose users share similar interests or beliefs. Example: There are many recent studies revealing the power of peer recommendations on purchasing behavior and product discovery.

Memetics

The replication of ideas, habits and beliefs across individuals. Commony known as a “meme.” Application: For a marketing message to go viral, it will need to exhibit the following characteristics: 1) be assimilated by a social media user 2) be retained in that user’s memory; 3) be replicated by the user in a way that is observable by other users; 4) be transmitted to other users (who, in turn, assimilate, retain and further replicate the message). Example: Here are some of the best Internet memes of 2011.

Narcissim

Excessive fascination with oneself. Application: Social networks provide an outlet for individuals to engage in self-promotion. Specifically, research suggests that Facebook users are more likely to be extraverted and narcissistic. Example: Recent research from the University of Georgia showed that narcissisistic personalities had higher levels of social activity in the online community and more self-promoting content. Strangers who viewed the Web pages of these users judged the page owners to be more narcissistic.

Tribalism

A person’s strong feeling of identity and loyalty towards a specific group (the tribe). A person derives social value from participating in that community. Application: Social media enables continued interactions between supporters of a brand, and between the consumers and the companies, thus increasing engagement. Example: Reseach in the U.K. shows that restaurants and hotel chains who successfully make customers feel part of an exclusive clan engender loyalty. Tribe members want to contribute to the success of the tribe.

What other key drivers of human behavior would you add to this list? What motivates YOU to use the social web?

Mark Schaefer is a marketing consultant, author and college educator who blogs at {grow}. You can also follow him on Twitter: @markwschaefer.

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