A New Order

I taught my first class on the New Sales Contract this week. The room was pretty well packed with agents, many of whom I knew. Reaction to the contract was mixed, with the agents having problems in many of the same areas that the committee struggled with.

While I can't yet post a copy of the New Contract -- leave a comment if you think I should be allowed to post it in it's entirety -- I can give you the new paragraph numbers and headings. One of the most obvious changes to the New RSC is the way that it is organized. I think this change is one that is for the better, as does almost everyone to whom I have taught this contract so far.

What's been done is to put the two most important pieces of the contract - the most fundamental issues, up front. Every contract for real estate boils down the this bargain . . . I agree to sell you this property and you agree to pay me this amount of money for it. So Paragraph Number 1 of the RSC continues to be the "Real Property" paragraph, in which the parties to the transaction are asked to identify the property being sold by Tax Map Number, County, Subdivision, Lot and Block or Unit Number and Street Address. Paragraph 2, formerly the Personal Property paragraph, becomes the Sales Price paragraph. This Real Property for this Sales Price now lead off the RSC.

Personal Property, fixtures, appliances, property condition issues all will have to wait until further into the contract before they are addressed. Although they may be the items that the parties spend the most time fretting over between contract ratification and settlement, they are taken up in the New Contract only after we've addressed all the money issues, not only How Much, but How, When, Where and from Whom the money will come. I'll discuss each of those questions in future postings, but for now, here is the paragraph by paragraph breakdown:

1. Real Property
2. Price and Financing
3. Deed(s) of Trust
4. Deposit
5. Down Payment
6. Settlement
7. Equipment, Maintenance and Condition
8. Utilities
9. Personal Property and Fixtures
10. Conventional Financing Terms
11. FHA and VA Financing and Appraisal
12. Financing Application
13. Alternate Financing
14. Purchaser's Representations
15. Access to Property
16. Termite Inspection
17. Repairs
18. Damage or Loss
19. Title
20. Possession Date
21. Fees
22. Broker's Fee
23. Adjustments
24. Attorney's Fees
25. Performance
26. Default
27. Other Disclosures
28. Assignabilty
29. Definitions
30. Miscellaneous
31. Void Contract
32. Additions
33. Home Warranty
34. Other Terms
35. Entire Agreement


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