Check Your Understanding Answers
- If a seller agrees to repair items on the property, when must they be completed?
Before the final verification of condition
- According to the Prorations paragraph, how will tax and other prorations be made?
Buyer and seller will prorate at close of escrow property taxes, special assessments, HOA dues, insurance premiums assumed by buyer, and payments on bonds and assessments. These will all be paid current and prorated on a 30-day month.
- Describe what the parties are agreeing to by initialing under Paragraph 21B.
If buyer defaults and cannot complete the purchase agreement, seller will retain the deposit paid by the buyer as long as it is not more than 3% of the purchase price. Any additional deposits made by the buyer require a separate written agreement regarding their applicability to liquidated damages.
- How do the parties agree to resolve a dispute arising from the purchase agreement?
The parties agree to mediate any dispute arising in relation to this purchase agreement before arbitration or court action.
The parties can also choose, by initialing Paragraph 22B, to use binding arbitration if mediation does not resolve the issue.
