Surveys

Good morning, everyone. I wanted to do my I guess it’s becoming a quarterly talk about surveys and. Forty sevens. Everybody who knows me knows this is my absolute favorite subject with contracts. This falls specifically on the one to four family residential contract. It also can fall. It does fall on the an improved property, new construction. I mean, it’s in the contract.

But today we’re going to discuss the one that’s on the one to four family residential contract. At this moment. It does fall on page three. I don’t know yet if it’s going to move with the new changes coming in about having to disclose if something is in a PID. So just know that it may slide a little bit, but the information should stay exactly the same. Ok, so right now on page three of the one to four family at the top, guys, it is paragraph and more so six survey.

Now, we’re going to talk about two things here. We’re first going to talk about a seller if we have a seller. If they have provided us their survey, but they do not provide the. Forty seven residential affidavit that goes with the survey, we need to pretend they don’t even have a survey, because if we can’t provide that 247 affidavit, it will end up falling at the seller’s expense.

And here’s why. So a lot of times, if we if somebody has a survey that’s put into MLS as part of the property or the buyer’s mark, that as a, you know, part of their offer within so many days after the effective date of the contract seller shall furnish the buyer and title company sellers existing survey of the property and a resident residential real property affidavit promulgated by the Texas Department of Insurance, which is also known as the Forty seven affidavit in big, bold letters.

If the seller fails to furnish the existing survey or affidavit within the time prescribed buyer shall obtain a new survey at seller’s expense no later than three days prior to the closing date. So we’re going to stop there for a minute.

You have to have them together for this paragraph to work for the seller and or the buyer, because without them together, the seller, if they don’t provide them, whether we have the buyer or the seller. A new survey will be ordered at the seller’s expense if they do provide both of those things. We’ll pick back up if the existing survey or affidavit is not acceptable to the title company or the buyer’s lender. The buyer shall obtain a new survey at seller or buyer’s expense no later than three days prior to closing.

So if both of those items are given within the time prescribed and again, the 247 must be notarized, then whatever’s negotiated at buyer sellers expense is what happens. So please remember, guys, if we have a seller. If we have a survey. We have to have had 247, otherwise that survey really doesn’t help our sellers out at all. So just know that if we have. A survey.

We’ve had one recently where the House had a poll, but the survey didn’t reflect the poll. We put the survey animals and put in big, bold letters for information purposes only. And then we also made sure that we had that the buyer would have to provide their own new survey.

So, again, if that’s ever sent over and you know, we don’t have a T-. Forty seven, please renegotiate that portion of the contract. So number two is within Blank days after the effective date of this contract, buyer shall obtain a new survey at buyer’s expense buyers is deemed to receive the survey on the date of actual receipt or within the date specified, whichever is earlier.

Number three is within Blank days after the effective date of this contract, seller sellers and expense shall furnish a new survey. So these are the other two that can be used if we have a buyer and we know we’re going to have to buy a new survey. Please give this date enough time.

Pass the option period passed a couple other things, because if the survey is obtained, the buyer will have to pay for whether they buy the house or not. So please, please, please don’t put three days in there. Don’t put five days in there. Give it if we can. If the contract allowed, try to give it 15 days, at least 15 to 20 days to make sure we get past our option period, if there is one, and everybody’s comfortable moving forward.

Otherwise, there might be a rush that has to be given or something like that. And the seller one, that’s fine within some of these days, the seller can purchase it. The other thing I want to point out about this second paragraph, if we have a buyer and we are saying or seller, but if this is marked and it says within, let’s say, 10 days after the effective date of this contract, buyer shall obtain a new survey. Buyer’s expense buyer is deemed to receive the survey on the date of actual receipt or at the date specified in this paragraph, whichever is earlier.

So if we have 10 days in there and we don’t have that survey back within 10 days, this contract assumes the buyer has it and therefore the buyer then doesn’t have the extra time that they’re supposed to to be able to review it for the objections it assumes that they have. They have.

Received it. So that’s why we need to make sure there’s enough time in there. So if you guys have any questions about this, again, this is my favorite paragraph of the contract. I love surveys. We talk about them a lot. And I know a go over this about once a quarter. So happy to hear from anybody if you need anything from me. Thanks.

Episode Links

contracts, Texas Department of Insurance, Mike Acquisto , Shana Acquisto , TNT 

Episode Recorded Live on YouTube 9.3.21

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