98% of Real Estate purchase in California use the California Association of Realtors (CAR) California Residential Purchase Agreement and Joint Escrow Instructions (Purchase Agreement) which can be found on pages 185 – 194 in our book. Your broker is Ms. Brown; the office is located at 1500 N. Verdugo Rd., Glendale CA 91208. The address of the property is 135 Shady Lane in La Crescenta. It’s a 1600 square foot, 3 bedroom, 2 ¾ bath home with a wood-burning fireplace in the family room on a 7500 square foot flat lot.
Your assignment is to complete the Purchase Agreement for the buyers below.
Bob and Bonny Buyer visit your following Sunday open house and wish to write an offer. Because of prior commitments, the appointment is made for the following Tuesday at 7:00 P.M. at your office. Write an offer for the buyers using the following information:
The purchase price to be $375,000
$3,000 deposit
Down payment to be 20%
Interest to be 4.0% for 30 years; buyers to pay 1 point
Seller to pay for a home warranty not to exceed $450 to cover the air conditioning and the roof.
They want all existing fixtures (Remember sellers’ wish to reserve the DR light fixture). They also want the D.R. hutch.
Escrow to be for 45 days.
In addition to completing the Purchase Agreement, please answer the questions below in a one-page (not two to three) essay.
What other information may you need to accompany this offer prior to presenting it to the sellers?
What information do you want to point out to the buyers about the contract? For example, what parts do you need to explain to them because it is complicated or they have a choice to make.
What forms around agency must you have the buyers complete?
((Although there are other required disclosures, for this project you will only need to fill out the Buyer’s Advisory).
Sample Solution
