Real Estate Offer Process- Seller Disclosures
You’ve made an offer to purchase real estate in Park City or Deer Valley, and your offer was just accepted- great! What’s next???
If you’re purchasing real estate in a Park City or Deer Valley community with a homeowners association, how do you review and verify homeowner’s association rules, documents, financial statements and other information?
With few exceptions, your offer was written on the standard, Utah State approved, Real Estate Purchase Contract (REPC). The REPC includes the following language:
Now that the offer has been accepted by both Buyer and Seller, the Seller is obligated to provide the Seller Disclosure Documents (listed above) to the Buyer prior to the Seller Disclosure Deadline. This deadline is proposed by the Buyer with the offer. Typically, the Seller Disclosure Deadline is five to seven calendar days after acceptance of the REPC.
After Acceptance, the Seller, Listing Agent and Title Company work together to gather all of the required documents. The Listing Agent or Listing Brokerage delivers the documents to the Buyer’s brokerage, who then will immediately delivers them to the Buyer.
a) Seller Property Condition Disclosure – this form is completed by the Seller, and includes “Are you aware of” questions about the condition of the property. Sellers are required to disclose the existence of issues with the property that they're aware of. We always strongly suggest that Buyers hire a home inspector, or other qualified professionals to conduct the appropriate tests and inspections.
b) The Commitment for Title Insurance is provided by a licensed title company and includes information about liens, easements, and any other publicly recorded encumbrances against the property. The REPC includes language that obligates the Seller to purchase for the Buyer the Title Insurance Policy.
c) and d) Both items (c) and (d) are related to real estate that is part of a Homeowner’s Association (HOA), and the property is subject to the rules, regulations and other governing HOA documents. For Buyers purchasing condominiums or real estate in private communities, these documents are especially important. During Due Diligence, Buyers will have the opportunity to review HOA documents, and if desired, contact HOA management directly to ask questions, and verify information.
e) If the property is leased on a long term basis, a copy of the lease agreement will be provided. When property is rented on a nightly weekly basis, there may be reservations that need to be honored by the new owner/buyer. If this is the case, the specific dates and terms of the reservations would need to be disclosed in writing prior to the Seller Disclosure Deadline, along with any applicable management contracts.
As the Buyer, you will have until the expiration of your Due Diligence Deadline to review the documents, and to decide whether or not to proceed with the real estate purchase based on your research.
Questions about real estate in Park City or Deer Valley? Please contact Quinn Eichner @ 435-640-1854, or use the Contact Us Form to request additional information.