Broker Reactivation-TRANSACTION PROVISIONS (Sections 5

TRANSACTION PROVISIONS (Sections 5 - 9 of the CBS1)

Pdf Summary

Sections 5-9 of the Contract to Buy and Sell (CBS1) outline important provisions related to financing conditions, appraisals, owners' associations, title insurance, and new improvement location certificates (ILC) or surveys.<br /><br />In Section 5, brokers are advised to be aware of deadlines related to financing terms and loan assumption. Buyers have the option to obtain new loans and must apply for them by the specified deadline. If the proposed loan terms are not satisfactory, the buyer has the right to terminate the contract. If an existing loan is not to be released at closing, the contract is conditional upon the seller's approval of the buyer's financial ability and creditworthiness.<br /><br />Section 6 clarifies that an appraisal is an opinion of value prepared by a licensed appraiser. If the appraised value is less than the purchase price, the buyer has the right to terminate the contract or object to the appraisal. FHA and VA loans have specific provisions regarding appraisal requirements.<br /><br />Owners' associations are addressed in Section 7, highlighting the financial obligations and rules that property owners must comply with. Buyers are encouraged to review the association documents and have the right to terminate the contract if any unsatisfactory provisions are found.<br /><br />Section 8 deals with title insurance and the transfer of property rights. Buyers have the right to object to any unsatisfactory title matters and can terminate the contract if necessary. Special taxing districts and their potential impact on property owners are also disclosed.<br /><br />Lastly, Section 9 addresses the need for a new ILC or survey. The buyer or seller can select and pay for a new ILC or survey, and the buyer has the right to object to any issues identified.<br /><br />Overall, these sections provide guidance and protection for buyers and sellers throughout the transaction process, ensuring that all parties are aware of their rights and obligations.

Keywords

Contract to Buy and Sell

financing conditions

appraisals

owners' associations

title insurance

new improvement location certificates

surveys

loan assumption

appraised value

association documents