Good morning, this is Stacey Hendren, client coordinator with a Acquisto Real Estate, and I am here to talk about a couple of paragraphs in the one to four family residential contract that’s resale with TREC, which is the Texas Real Estate Commission.
So let me make myself smaller and we’ll get right on that quickly.
Ok, so the things that I wanted to go over, the first one is the surveys now on and this is the current one to for family, the new one for family that will come out in a couple of months.
I’ve checked it in. The only difference that I thought was that this is moving from page two to page three. So there really aren’t any changes with this. It does fall under the title policy and survey portion of the contract. So let’s go to it. So surveys, we’re going to cover number two and number three first, and then we’ll circle back around to number one.
OK, so number two, within blank of days of the effective date at this contract, buyer shall obtain a new survey at buyer’s expense. Buyer is deemed to receive the survey on the date of actual receipt or the date specified in this contract, whichever is earlier.
So, guys, that last few words of this is super important, whichever is earlier.
So if we have a buyer that is going to purchase a survey, we want to make sure that there is enough time between the end of the option period and the survey being due for this to happen.
We don’t want to have this be a very small amount of time because at that point the buyer will absorb the cost of the survey even if they back out of the contract during the auction period. So let’s say we have negotiated out a seven day option period.
And after that, we want to give another seven to 10 days to allow this survey to be ordered. Because when it says whichever’s earlier, if the date is earlier and we have not received that survey, then the contract reads that it’s deemed that we have received it by that date. So if for some reason we have a date on here and we have not received that sort of rank as we need to amend this portion of the contract. So please, please, please.
And let’s keep that in mind. I do watch for that when we have contracts and my dates and stuff. But let’s give it enough time. And when I say enough time, if you have a client that’s purchasing a house that’s in a standard neighborhood that’s not far out, that doesn’t have a lot of land and seven to 10 days is plenty of time to receive a survey that I’m talking about seven to 10 days after the auction period ends. So let’s keep in mind, let’s put in there maybe twenty days or so. And again, it’s always negotiable.
But if you have questions, always ask me. I’m happy to help. Number three, within blank days of the effective date of this contract, the seller at seller’s expense shall furnish a new survey to buyers. Well, it’s the same thing. If it’s if we have a seller, if we’re on the selling side, if we have a seller that has to absorb the cost of a new survey, we want to go ahead and give it enough time to offer the option, period.
So please remember, just let’s put a little bit longer in here. These two sections, if they’re there, if we’re negotiating or we have a seller, make sure there’s plenty of time in here that we have to get that story up. So let’s go to number one now.
What I find interesting is in the last week, I’ve had two separate transactions where there has been this paragraph has been misconstrued and I’m finding that it’s often misconstrued and people don’t understand it. So I’m going to read it and then we’re going to break it down.
Within one case of the effective date of this contract, the seller shall furnish to buyer and title company sellers existing to the right of the property and a residential real property affidavit promulgated by the Texas Department of Insurance, which is the T. Forty seven affidavit. If seller fails to furnish the existing right or affidavit within the time, prescribed fire shall obtain a new survey as seller’s expense no later than three days prior to closing date.
If the existing surveyor affidavit is not acceptable to the title company or buyers, lenders Buyer shall obtain a new survey at either seller’s expense or buyer’s expense no later than three days prior to the closing day. OK, we’re going to break this down really quick. So within the negotiated amount of days of the contract, the seller is to furnish the buyer and the title can be their existing survey and the T 47, it says both of them.
Then it gets really built now the T 47. Let me go over that really quickly. Must be notarized. It is a document that has. We notarized so survey and notarized to seven, if the seller provides to furnish the existing survey or the affidavit within the time prescribed by shall obtain a new survey and seller’s expense no later than three days prior to the closing date. This says it in bold letters, in bold words, and that’s why I get confused.
Why people don’t understand it a lot is if the seller fails to furnish the survey or the affidavit. So either one, the buyer can take a new survey at the seller’s expense. I mean, that’s what it reads.
So and then the other portion of it says if the existing survey so let’s say the seller does turn in this survey or an affidavit, if they’re not acceptable to the title company or the lender, the buyer shall obtain a new survey at either seller buyer’s expense, which is ever negotiated no later than three days before the closing date.
So if they turn both things in and they’re not one of them is not acceptable, then whoever it’s negotiated will pay for the new one. So that’s pretty cut and dry by guys. So what’s happened in the last week is we’ve had two buyers separate transactions.
The listing agents on the other side have given us the survey and I’ve asked for the T 47 and they don’t turn them in. And we’re past the time period. And I ask for them and they’re like, oh well, you know, the survey is nothing’s changed on it. The seller hasn’t done anything. They can sign the T 47 at the title company at closing.
No, that’s not how this works. It’s what it says. And the buyer can have a new survey at the seller’s expense at that point because the seller hasn’t turned over what they are supposed to turn over. So we’re working through those those issues with our files.
And it’s not it’s not a big issue, because the good news is most of the surveys that we have are actually, I think within a year old and nothing’s changed and they’re pretty current. So but guys, if our sellers don’t turn these in within the time prescribed and I put that in my emails that go out immediately, we were executed for contract.
If they haven’t turned in at T47 in a survey. But this contract says they’re going to they will be responsible for the cost of the new survey. So please make sure you’re explaining this paragraph correctly to your clients. I don’t want anybody to get to the closing table.
Why am I charged for sure. Right. Well you turned in the T 47, two days late. And with that being said, the buyer decided to order a new survey and they have the right to do that. So let’s try with all of our listings to make sure that we are getting the surveys in T47 prior to going on the market and that we’re stressing the importance to the sellers of they will have to absorb the cost of a new survey if they do not turn it in.
So if you have questions about this, this is probably one of my favorite topics to talk about. And please let me know. I’ve had a couple title companies tell me that this is actually probably one of the most misconstrued paragraphs in the entire paper, in the entire contract that people, even though it’s there, they just don’t read through it.
So let’s make sure that we have read our contracts over and over and that we fully understand the next portions that I want to talk about. So in the current contract, it’s on page seven and on the new contract, it’s moving to page eight. So we’re going to go over the notice section.
And this I know this seems pretty basic, but you would be surprised at how often I do see one side of this not filled out.
Ok, guys notices all notices from one party to the other must be in writing in our effective one, mailed to hand, delivered to or transmitted by fact fax or electronic transmission as follows.
Whoever we represent, whether it be buyer seller, please make sure my email address is going here. This signals the title company, the lender, the other agent involved on the opposite side agent, that it is OK to allow me to have copies of everything that’s going back and forth. So please remember to put Stacey etic Mr Real Estate dot com on one of these sites, her representing.
Please go ahead and make sure if you have two separate clients that we get their email addresses, both of them either here or here right now, we can get them wherever we can and at least get one phone number, if not both here. Now, on the opposite side, if we don’t have any of the other clients information, please go ahead and make sure you put the opposite side agent’s email address and phone number and then maybe do care of a broker in that way.
People know that it can go to one of those places and hopefully they fill in their client’s information. Now, the cool thing about the new one to four family, which I’ll probably fast, is again, this is page eight, not page seven on the new one.
They’re actually giving us more space to put double e mails and instead. And so that’s really, really good. So I’m really excited about that. Happy about that.
So that is so important because if there is anything legally that needs to go out, we need to make sure that all of the email addresses, phone numbers, anything we have can be put in there. So just be aware of that. So number 20 to agreement at parties and again, moving from page seven to page eight on the new contracts.
This is any document that is part of the one to four family afterwards. So this is the third party financing and then them. If your buyers are doing financing, please check that box.
If there is an away and the property is subject to a mandatory membership, please check that box. If your buyer gives the buyer or if there’s a buyer on the opposite side that has to sell their other property. Please make sure that box is checked.
And let’s make sure if we have a seller or we’re doing the sellers to buyers at least, that we check the sellers to first generally stock, not the buyer shippers that actually stocks. If there is a lead based paint within them that goes with that, please make sure you check that.
And if there is a track, you see, I don’t think there’s not.
So the other box. So this would be good for things like non-rural. Key item, addendum on site Sueur. If there’s a long side sewer that needs to go here or any other documentation, that is part of the contract that our client signed as part of the contract.
We need to have them listed. Guys, this makes me more efficient and makes the travel companies more efficient and it makes the lenders more efficient when we have all of the boxes checked more correctly. So please, let’s try to go through and check those and make sure we have all of the right things check mark in that we have all of the correct documents that go with it. So that is what’s important about that.
Now, the whole thing on the new one to family, because there are changes being made to it, is we see a couple more that are added the addendum regarding the residential leases, and that’s if there happens to already be some place on the property or there are leases for ended and then regardless.
Regarding fictionalizes. So security systems, you ring the doorbell. I mean, if there’s a lease the second place, but if you have leases on anything with the house, these two items are going to be part of it. Now, security cameras, you know, there’s a lot that’s going to go on with the new contract, which I think is there are welcome changes.
I think they’re going to help a lot of things in the future. And I think that we are I’m happy to see these changes being made and I’m super happy to learn more about them and discuss them with you guys in the near future. So I’m always here. If there’s any questions, please feel free to contact me at any time, you guys.