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Contract Series Paragraph 8

George Clements ~ Greenville, SC Real Estate 

 

Paragraph 8 in the Contract For Sale deals with whose name the title is going to be put in and how the closing is going to take place.  The paragraph looks something like this:

 

8.CONVEYANCE AND CLOSING DATE: Seller agrees to convey by marketable title and deliver a proper
general warranty deed, free of liens and encumbrances, except subject to all reservations, easements, rights of
way, and restrictive covenants of record on the Property (provided they do not make the title unmarketable or
materially or adversely affect the use and value of the Property) and to all government statutes, rules,
ordinances, and regulations.

The deed will be prepared in the name(s) of __________________________________________________________
and delivered to the office of the closing attorney ____________________________________or stipulated place of
closing with the transaction to be closed on or before ________ PM on __________________________________.
Seller and Purchaser authorize their attorneys and/or Settlement Agent to furnish to the Listing Broker and Selling Broker copies of the preliminary and final HUD-1 Settlement Statement for the transaction.

 

The first sentence is basically saying that the seller is selling the property without any problems connected to it.  The title search that the closing attorney has done should show if there are any problems like this.  Liens mean anything that is owed on the property like loans or work that has been done but not paid for.  It is fine for a property to have easements, right of ways, and covenants as long as they don't hurt the property so much that it is not marketable.  For instance, if there was a huge drainage easement owned by the city that went under a home that the city could get access to at anytime by going through your home, this would make an unmarketable title.  A lender would not give you a loan in this situation.

The second sentence just shows how and who's names will be put on the title for the purchaser and who the attorney will be.  It also gives a closing time.  Based on the wording, the closing could take place before this time but has to happen by this time.  If a closing is delayed for whatever reason, a contract extension needs to be signed.  

The third sentence says that the agents have the right to review the HUD for the people they are representing.  the HUD is just a break down of all of the costs associated with the transaction.  It breaks down both the purchaser's and seller's costs and shows how much money each one brings or gets.

Comment balloon 0 commentsGeorge Clements • March 18 2008 04:34PM

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