Category Archives: Contracts

Meth Labs and Properties for Sale

Sellers have to disclose known material defects and complete a Seller’s Property Disclosure form when listing property for sale. There can be health risks associated with living in a house where meth was produced or used. Some telltale signs that a property could be contaminated by meth include discolored walls, strong ammonia-like odors, empty over-the-counter… Continue Reading

Escalation Clauses: A Lawyer’s Dream

Watch Jon Goodman’s Webinar: Escalation Clauses – A Lawyer’s Dream. In markets with shortages of inventory, buyers know that they must aggressively compete for the right properties. Yet purchasers do not want to pay any more than is absolutely necessary to buy the property. Purchasers sometimes submit “escalation” clauses in an attempt to tie up… Continue Reading

Don’t Forget About FIRPTA

Foreign Investment in Real Property Tax Act The federal Foreign Investment in Real Property Tax Act (“FIRPTA”) attempts to reduce opportunities for foreign persons to avoid U.S. income tax on their sales of U.S. real property interests. For that purpose, FIRPTA generally obligates any person who buys a U.S. real property interest from a foreign… Continue Reading

State Approved Commercial Contract

Co-Author: David A. Farus, Esq. Colorado has returned to having a State approved real estate purchase contract designed for commercial transactions. This article identifies differences between the new Colorado Real Estate Commission (CREC) approved commercial and residential forms, a conceptual flaw in the commercial form, and a partial solution to the flaw. Most of the… Continue Reading

When is a Sale Deemed “Closed?”

Co-Author: Jordan Bunch, Esq. Consider a transaction scheduled to close on Wednesday, June 30, 2010, attended by both buyer and seller. The seller signs all of the seller documents, including the deed, which is tendered to the closer for recording. The buyer signs all of her documents and tenders her down payment. Though the buyer’s… Continue Reading

Sellers Swapping Buyers

Right of First Refusal— Kick Out Clauses You’ve just received an otherwise desirable offer on one of your listings. Unfortunately, it is not clear whether Buyer will be able to qualify for the loan. Your Seller is inclined to accept the offer, but wants to preserve the flexibility of replacing this Buyer with another one,… Continue Reading