Contract Dates and Responsibilities

Posted by Metropolitan Group on Friday, February 6th, 2015 at 10:17am.

This article details dates, responsibilities, reasonable deadlines of completion and an explanation of what you can expect during the buying and selling process of your Colorado home.

Acceptance Deadline Date and Time

Responsible Party: Seller

Date Range: Typically 1-3 days after the offer has been submitted

Contract Section: 28

Contract Language:NOTICE OF ACCEPTANCE, COUNTERPARTS. This proposal will expire unless accepted in writing, by Buyer and Seller, as evidenced by their signatures below, and the offering party receives notice of such acceptance pursuant to § 27 on or before Acceptance Deadline Date (§ 3) and Acceptance Deadline Time (§ 3). If accepted, this document will become a contract between Seller and Buyer. A copy of this Contract may be executed by each party, separately, and when each party has executed a copy thereof, such copies taken together are deemed to be a full and complete contract between the parties.”                

Explanation: The offer will expire if it has not been accepted by the Acceptance Deadline by delivering written acceptance to the Buyer or their representative.

Alternative Earnest Money Deadline

Responsible Party: Buyer

Date Range: Typically 1-2 days after the offer has been accepted

Contract Section: 4.3

Contract Language:Alternative Earnest Money Deadline. The deadline for delivering the Earnest Money, if other than at the time of tender of this Contract, is as set forth as the Alternative Earnest Money Deadline (§ 3).”

Explanation: The earnest money helps fund the Buyer’s down payment and shows good faith to the Seller that the Buyer is committed to the property. This is a credit to the Buyer.

Record Title Deadline

Responsible Party: Seller/Title Company

Date Range: Typically 3-7 days after the offer has been accepted

Contract Section: 8.1.1

Contract Language: “Seller Selects Title Insurance Company. If this box is checked, Seller will select the title insurance company to furnish the owner’s title insurance policy at Seller’s expense. On or before Record Title Deadline (§ 3), Seller must furnish to Buyer, a current commitment for owner’s title insurance policy (Title Commitment), in an amount equal to the Purchase Price, or if this box is checked □ an Abstract of Title certified to a current date. Seller will cause the title insurance policy to be issued and delivered to Buyer as soon as practicable at or after closing.”

Explanation: Any and all information related to the subject property being sold must be obtained by the Title Deadline.  This deadline provides a policy to the new owner to insure free and clear title to the property subject to any existing exceptions such as Covenants, Conditions, Easements, and Restrictions on the subject property.

Off-Record Title Deadline

Responsible Party: Seller

Date Range: Typically same as Title Deadline

Contract Section: 8.3

Contract Language: “Off-Record Title. Seller must deliver to Buyer, on or before Off-Record Title Deadline (§ 3), try copies of all existing surveys in Seller’s possession pertaining to the Property and must disclose to Buyer all easements, liens (including, without limitation, governmental improvements approved, but not yet installed) or other title matters (including, without limitation, rights of first refusal and options) not shown by public records, of which Seller has actual knowledge (Off-Record Matters). Buyer has the right to inspect the Property to investigate if any third party has any right in the Property not shown by public records (e.g., unrecorded easement, boundary line discrepancy or water rights).”

Explanation: All documentation and issues actually known by the seller to exist, but are not in public record must be disclosed by this date. Any and all agreements that are not legally recorded must be disclosed by the seller to the buyer by this date.

Off-Record Title Objection Deadline

Responsible Party: Buyer

Date Range: Typically 3-5 days after offer has been accepted

Contract Section: 8.3

Contract Language: “Buyer’s Notice to Terminate or Notice of Title Objection of any unsatisfactory condition (whether disclosed by Seller or revealed by such inspection, notwithstanding § 8.2 and § 13), in Buyer’s sole subjective discretion, must be received by Seller on or before Off-Record Title Objection Deadline (§ 3). If an Off-Record Matter is received by Buyer after the Off-Record Title Deadline (§ 3), Buyer has until the earlier of Closing or ten days after receipt by Buyer to review and object to such Off-Record Matter. If Seller receives Buyer’s Notice to Terminate or Notice of Title Objection pursuant to this § 8.3 (Off-Record Title), any title objection by Buyer and this Contract are governed by the provisions set forth in § 8.4 (Right to Object to Title, Resolution). If Seller does not receive Buyer’s Notice to Terminate or Notice of Title Objection by the applicable deadline specified above, Buyer accepts title subject to such rights, if any, of third parties of which Buyer has actual knowledge.”

Explanation: Buyer must provide written notice of any unsatisfactory condition(s) disclosed by Seller or revealed by Off-Record Matters Deadline.  The Buyer must sign the notice and give to Seller on or before Off-Record Matters Objection Deadline.

Association Documents and Title Objection Deadline

Responsible Party: Buyer

Date Range: Typically 3-5 days after offer has been accepted

Contract Section: 7 and 8

Contract Language: See sections 7 and 8.

Explanation: This date covers two different sections/activities:

Section 7: Governing Documents. The Seller agrees to furnish to the Buyer, at Seller’s expense, a current copy of the owner’s association declarations, bylaws, rules and regulations, party wall agreements and most recent financial documents, if any, by the Governing Documents Deadline. If there are any problems or concerns with these documents, written notice of the unsatisfactory provision(s) must be presented to the Seller by Buyer on or before this deadline.

Section 8: Title Objection Deadline. The Buyer has the right to inspect all of the Title Documents.  If there are any unsatisfactory items the Buyer must provide written notice to the Seller on or before the Title Objection Deadline.

Sellers Property Disclosure Deadline

Responsible Party: Seller

Date Range: Typically 1-2 days after the offer has been accepted

Contract Section: 10.1

Contract Language: “Seller’s Property Disclosure. On or before Seller’s Property Disclosure Deadline (§ 3), Seller agrees to deliver to Buyer the most current version of the applicable Colorado Real Estate Commission’s Seller’s Property Disclosure form completed by Seller to Seller’s actual knowledge, current as of the date of this Contract.”

Explanation: This disclosure details the Seller’s actual knowledge and known problems of the condition of the subject property. 

Loan Application Deadline

Responsible Party: Buyer

Date Range: Typically can be completed prior to offer acceptance or 7-10 days after offer has been accepted

Contract Section: 5.1

Contract Language: “Loan Application. If Buyer is to pay all or part of the Purchase Price by obtaining one or more new loans, (New Loan), or if an existing loan is not to be released at Closing, Buyer, if required by such lender, must make an application verifiable by such lender, on or before Loan Application Deadline (§ 3) and exercise reasonable efforts to obtain such loan or approval.”

Explanation: Prior to or by this date the Buyer must apply for a loan. NOTE: It is recommended that you speak with a lender before you begin the buying process to ensure this date is met prior to an offer being submitted.

Loan Objection Deadline

Responsible Party: Buyer

Date Range: Typically 24-26 days after offer has been accepted

Contract Section: 5.2

Contract Language: Loan Objection. If Buyer is to pay all or part of the Purchase Price with a New Loan, this Contract is conditional upon Buyer determining, in Buyer’s sole subjective discretion, whether the New Loan is satisfactory to Buyer, including its availability, payments, interest rate, terms, conditions, and cost of such New Loan. This condition is for the sole benefit of Buyer. Buyer has the Right to Terminate under § 25.1, on or before Loan Objection Deadline (§ 3), if the New Loan is not satisfactory to Buyer, in Buyer’s sole subjective discretion. IF SELLER IS NOT IN DEFAULT AND DOES NOT TIMELY RECEIVE BUYER’S WRITTEN NOTICE TO TERMINATE, BUYER’S EARNEST MONEY WILL BE NONREFUNDABLE, except as otherwise provided in this Contract (e.g., Appraisal, Title, Survey).

Explanation: In order to give the Buyer every opportunity to obtain proper financing, this date is as close to the closing date as possible.

Appraisal Deadline

Responsible Party: Buyer/Lender

Date Range: Typically 21-23 days after offer has been accepted

Contract Section: 6.2

Contract Language: Appraisal Condition. The applicable Appraisal provision set forth below applies to the respective loan type set forth in § 4.5.3, or if a cash transaction (i.e. no financing), § 6.2.1 applies.

Explanation: Based upon the provisions of the loan the Buyer must terminate the contract in writing on or before the Appraisal Deadline.

Current Survey Deadline

Responsible Party: Buyer/Seller

Date Range: Typically 12-15 days after offer has been accepted

Contract Section: 9

Contract Language:  “If the box in § 9.1.1 or § 9.1.2 is checked, Buyer, the issuer of the Title Commitment or the provider of the opinion of title if an Abstract of Title, and <INSERT TEXT> will receive a Improvement Location Certificate, Improvement Survey Plat or other form of survey set forth in § 9.1.2 (collectively, Current Survey), on or before Current Survey Deadline (§ 3). The Current Survey shall be certified by the surveyor to all those who are to receive the Current Survey.”

Explanation: The cost of a survey or ILC shall be stated in the contract.  The Seller agrees to provide the results to the Buyer by the Survey Deadline.

Current Survey Objection Deadline

Responsible Party: Buyer

Date Range: Typically 14-16 days after offer has been accepted

Contract Section: 9.2

Contract Language: “Current Survey Objection. Buyer has the right to review and object to the Current Survey. If the Current Survey is not timely received by Buyer or is unsatisfactory to Buyer, in Buyer’s sole subjective discretion, Buyer may, on or before Current Survey Objection Deadline (§ 3) notwithstanding § 8.3 or § 3:

9.2.1 Notice to Terminate. Notify Seller in writing that this Contract is terminated; or

9.2.2 Current Survey Objection. Deliver to Seller a written description of any matter that was to be shown or is shown in the Current Survey that is unsatisfactory and that is unsatisfactory and that Buyer requires Seller to correct.”

Explanation: If the Buyer has any issues/objections with the subject property survey, the objection must be delivered and received by the Seller on or before the Survey Objection Deadline.

Inspection and Cost Estimates

Responsible Party: Buyer

Date Range: Typically 3-7 days after offer has been accepted

Contract Section: N/A

Contract Language: The date range is suggested based upon the actual Inspection Objection Deadline.

Explanation: Although a home inspection is not required, we highly recommend that each Buyer have one completed to determine if any problems exist.

Inspection Objection Deadline

Responsible Party: Buyer

Date Range: Typically 7-10 days after offer has been accepted

Contract Section: 10.2

Contract Language: “Inspection Objection. Unless otherwise provided in this Contract, Buyer acknowledges that Seller is conveying the Property to Buyer in an “as is” condition, “where is” and “with all faults.” Colorado law requires that Seller disclosure to Buyer any latent defects actually know by Seller. Disclosure of latent defects must be in writing. Buyer, active in good faith, has the right to have inspections (by one or more third parties, personally or both) of the Property and Inclusions (Inspection), at Buyer’s expense. If (1) the physical condition of the Property, including, but not limited to, the roof, walls, structural integrity of the Property, the electrical, plumbing, HVAC and other mechanical systems of the Property, (2) the physical condition of the Inclusions, (3) service to the Property (including utilities and communication services), systems and components of the Property (e.g. heating and plumbing), (4) any propsed or existing transportation project, road, street, or highway, or (5) any other activity, odor or noise (whether on or off the Property) and its effect or expected effect on the Property or its occupants is unsatisfactory, in Buyer’s sole subjective discretion, Buyer man, on or before Inspection Objection Deadline (§ 3).”

Explanation: After the inspection has been complete on the subject property the Buyer must object to any unacceptable findings of the inspection before or on the Inspection Objection Deadline. All issued must be listed and accompanied with a proposed action for the Seller to remedy. Because this is a negotiation, both the Seller and Buyer will need to agree on a remedy by the Inspection Resolution Deadline.

Inspection Resolution Deadline

Responsible Party: Buyer/Seller

Date Range: Typically 2-3 days after Inspection Objection Deadline

Contract Section: 10.3

Contract Language: “Inspection Resolution. If an Inspection Objection is received by Seller, on or before Inspection Objection Deadline (§ 3), and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution Deadline (§ 3), this Contract will terminate on Inspection Resolution Deadline (§ 3), unless Seller receives Buyer’s written withdrawal of the Inspection Objection before such termination, i.e., on or before expiration of Inspection Resolution Deadline (§ 3).” 

Explanation: All inspection issues/problems must be resolved by the Inspection Resolution Deadline. At this point, the Buyer may decide to back out of the contract, Buyer/Seller agree to have some/all items fixed, lower the sales price or any combination of these solutions.

Property Insurance Objection Deadline

Responsible Party: Buyer

Date Range: Typically 7-10 days after offer has been accepted

Contract Section: 10.5

Contract Language: Insurability. Buyer has the right to review and object to the availability, terms and conditions of and premium for property insurance (Property Insurance). Buyer has the Right to Terminate under § 25.1, on or before Property Insurance Objection Deadline (§ 3), based on any unsatisfactory provision of the Property Insurance, in Buyer’s sole subjective discretion.

Explanation: Before this deadline, the Buyer should verify that their insurance company will insure the subject property.  The Buyer should also verify that their insurance company will insure them if they own the property.  Certain issues may prevent an insurance company from insuring the property and it is important to be aware of these issues as soon as possible.

Closing Date

Responsible Party: Buyer/Seller

Date Range: Typically 28-30 days after offer has been accepted

Contract Section: 12.3

Contract Language: “Closing. Delivery of deed from Seller to Buyer will be at closing (Closing. Closing will be on the date specified as the Closing Date (§ 3) or by mutual agreement at an earlier date. The hour and place of Closing will be as designated by <INSERT TEXT>.”

Explanation: At closing, the loan papers are signed and the deed is transferred. Once closing is complete, the transaction is complete and the Buyer can take possession of the subject property on the agreed upon possession date and time.

Possession Date and Time

Responsible Party: Buyer/Seller

Date Range: Typically the same day as closing, but can be negotiated out.

Contract Section: 17

Contract Language: “POSSESSION. Possession of the Property will be delivered to Buyer on Possession Date (§ 3) at Possession Time (§ 3), subject to Leases as set forth in § 10.6.1.1.” 

Explanation: This is the agreed upon date and time that the Buyer may take possession of the subject property.

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