Dive into Section 4, the “sneaky” section of the Utah Real Estate Purchase Contract (REPC). What gets prorated, and by how much? What are special assessments, and who pays them? What fees might occur during a transaction, and how are they split?
0:46 – 4.1 Prorations – or “pro rata” if you like your Latin. Haha. Rents and taxes get prorated (or proportioned) between the buyer and seller.
1:45 – 4.2 Special Assessments. A special assessment is charged to specific, local homeowners for a capital expense (like a sewer line, an elevator, or a road repair) that is valuable only to those properties. It may be imposed by an HOA or a local government. Seller needs to disclose assessments, and may be responsible to pay them EVEN if the transaction closes before the assessment is imposed! Be transparent!
3:30 – What does “…shall survive closing” mean? After the contract is “executed” or “finished,” these things continue.
4:50 – 4.3 Fees, costs, and payment obligations. There are deposits that need to transfer with the transaction (like a security deposit).
6:18 – Lease contracts supersede the purchase contract. That may seem backwards, but remember the tenant has the right to fulfillment of their contract as well.
7:12 – 4.3c is Jason’s favorite part of the contract: Change of Ownership fees. These can be expensive, and the Real Estate Purchase Contract (REPC) overrules the Covenants, Conditions, and Restrictions (CC&Rs).
8:45 – Transfer utilities at settlement. The seller is responsible before settlement, the buyer is responsible after settlement. This is regardless of possession.
9:48 – The title company holds the money and makes sure everyone gets paid. Afterward, the seller gets to keep all the rest, which is called “proceeds”.
10:03 – What’d we learn today?
11:30 – Bloopers.
*No pies were harmed in the filming of this real estate discussion.
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A Production with Security Home Mortgage’s Jason Christiansen, and Hive Collective at Presidio’s Tyler Cazier and “Mr. Suit” Aric Wiszt.