An offer to purchase a property and writing a satisfactory agreement are paramount in the execution of a successful real estate transaction. As a general rule, an offer should contain or consider the following:

1. How title should be taken by the buyer (joint tenants, community property, or tenancy in common).

2. The specific date and time when the offer from the buyer will expire.

3. The street address and precise lot dimensions of the subject property.

4. That the seller warrants the building(s) are located legally within the property lines.

5. That the seller warrants there are no encroachments on adjacent property.

6. That the seller warrants no other person has any right, title, or interest in the property other than what appears on the preliminary title report.

7. That the seller warrants there are no unrecorded liens against the property.

8. That the seller warrants there are no violations of building and safety laws, either pending or contemplated.

9. That the seller agrees to allow the buyer to obtain a permit of occupancy on the property. If there is any expense or corrective violations in connection with the permit, said expense shall be the total responsibility of the seller.

10. That the seller is not aware of any contemplated changes in zoning affecting the property.

11. That if the sale is contingent on a zoning change, the seller will cooperate by signing all necessary documents.

12. That the buyer shall have the privilege of approving the preliminary report before the dosing of the escrow or transaction.

13. That a termite report shall be submitted into the escrow or trust account and be dated after this agreement. And that the seller shall, at his expense, comply with all requirements of the termite report unless otherwise agreed to.

14. If the buyer's funds come from a 1031 tax-deferred exchange transaction, the seller agrees to cooperate in furthering the exchange by signing all necessary documents, provided that the seller is not affected financially.

15. That the seller warrants the property is not located in any hazardous areas, such as in a flood zone, or on an earthquake fault, an area of earth movement, sinkhole areas, tornado or hurricane regions.

16. That the buyer has authority to approve all existing leases and verify all rents. And that the seller warrants no building areas were rented by giving any concessions of any kind. Seller warrants that all rents are accurate and correct as stated and that there were no free or reduced rents given.

17. If the buyer is assuming a promissory note or deed of trust (or mortgage) of record, buyer shall be given an exact copy of said documents for his inspection and approval before the close of the transaction. Seller warrants that terms of encumbrance are exactly as stated in the offer, and that there is no enforceable acceleration clause or due date on note or notes to be assumed.

18. That the buyer and/or his broker or representative shall have the authority to inspect the exterior and interior of the structure(s) and to approve the condition of the structure as well as the roofing, plumbing, heating, electrical, and the like, before the sale is consummated.

19. If buyer disapproves of any item or items, then the escrow company or real estate attorney is instructed to return all funds to the buyer without further instructions or signature from seller.

20. Escrow or transaction officer is instructed to have all rent deposits prorated on the cash down payment and not on any trust deed(s) or mortgage(s).

21. If there are any monetary adjustments to be made, they shall be to seller's purchase money deed of trust.

22. Buyer may assume present insurance or take out a new policy at his option.

23. Seller shall pay all escrow charges in connection with the sale. All other charges shall be paid by the buyer and seller in the customary manner.

24. Buyer shall get possession of and be responsible for property after close of the transaction.

25. Seller warrants that all leases are in effect and have not been changed or modified. Seller further warrants that there are no defaults in leases, either by the lessor or the lessee.

26. Seller warrants that there is no filled ground, toxic waste, asbestos, or other hazardous materials on the premises.

27. Seller warrants that there are no loans or notes against the personal property involved.

28. Seller agrees to furnish buyer with a chattel mortgage report (pledge of personal property) at his expense. Seller agrees to list all personal property in detail that is to be included in the sale and provide a bill of sale to buyer. Buyer has authority to inspect all personal property before close of the transaction using said list and to verify the accuracy of said list.

29. If title cannot be delivered to buyer, no damage to buyer shall be incurred. Buyer shall be reimbursed for all funds deposited in escrow without further instructions or signature from seller.

30. Seller is to allow buyer two working days after close of the transaction to change over all utilities.

31. Seller is to deposit all keys to the property which are in seller's possession before close of the transaction.

32. Seller is to provide buyer with a list of all persons having keys to the property.

 

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