The new revised PRDS Real Estate Purchase Contract is available and is quite an improvement over the old contract. It is logically ordered and clearly defines the obligations of the parties involved. As a real estate practitioner with almost 20 years experience, this is one of the best purchase contracts we have ever had and I like it.
A Case in Point
I recently met with a South Los Altos home seller who was selling his mother-in-law’s home. The home was held in a Trust and he was going to sell the home without hiring a local real estate professional. This provided me with an excellent opportunity to get one of my buyers into a solid property. I met the seller at the property with my buyer to see if we had a match.
The seller was confident that the home would “sell itself” because it was located near one of our local top performing elementary schools. I asked him if he was aware that the neighborhood school might be impacted and that a buyer’s child was not guaranteed a spot in the neighborhood school. Assignments were based on available classroom space. He was firm in his belief that he did not need to disclose this information because the house was held in a Trust.
New PRDS Real Estate Purchase Contract clarifies disclosure issues
Had he read the last section of paragraph 10 in the new PRDS Real Estate Purchase Contract, he would see that regardless of whether a statute exempts the seller from completing certain disclosure documents (like the Transfer Disclosure Statement or Seller Supplemental Disclosures), the seller is still legally required to disclose all known material facts about a property. Given that many home buyers purchase in Los Altos for their outstanding schools, do you think a buyer would be interested in knowing that his/her children may not initially get into the neighborhood school?
This is just one of many examples where the new PRDS Real Estate Purchase Contract makes it easier for the consumer to understand the important issues involved when making an offer to purchase a home.
What can you take away from this?
Should you be in the market to either buy or sell a home locally, make sure that your agent is familiar with the most current forms which would include the new PRDS Real Estate Purchase Contract. You would be surprised to find how many agents use older outdated forms. Should there be an issue, the first thing opposing counsel will look at is the published date of the legal document used by you or your agent.
*Note: I am not an attorney nor do I pretend to practice law. The preceding information is just that, information to get buyers and sellers to think about their home purchase or sale. Please consult your own qualified real estate attorney should you have questions concerning real estate law, contract law, disclosure law and/or your own personal situation.
Should you have any questions about the value of your home in today’s market or you wish to purchase a home, please call or text me at 650 465-0755.