Page 4 - Purchase Contract Guide

SECTION 1 - Property

1a Lines 1-2 Buyer’s and Seller’s names are at the beginning of the contract. If the Seller’s name is unknown at the time the

contract is written, mark the box “as identified in section 9c.”
The Seller’s name is very important to escrow because if it is not filled in, they will have to rely on the Seller’s signature on the
contract or the last deed of record to determine the identity of the Seller. Neither may be 100% reliable.

1d Lines 21-31Close of Escrow (COE) is defined as recordation of the Deed. If Escrow Company or Recorder’s Office is
closed on the COE date, COE shall occur on the next day that both are open for business. No contract extension is required
if COE falls on a date escrow or recorder is closed. COE is automatically extended to the next date both are open for
business.

1e Lines 32-35 Defines the funds (cashier’s check, wired funds or other immediately available funds) the Buyer must deliver to
the Escrow Company “in sufficient time to allow COE to occur on COE date. Also requires the Buyer to be certain the Lender
deposits immediately available funds as well. Immediately Available Funds are defined as “funds that
are in the Escrow Company’s Bank and are available for immediate withdrawal.”

Buyers are responsible for the Lender performing in a timely manner. Failure of the Lender to perform in a timely manner could
put the Buyer in breach of the contract and put their earnest deposit at risk.

Lines 23-26 When possession will occur. Brokers recommend that the parties seek appropriate counsel from insurance,
legal, tax and accounting professionals regarding the risks of pre-possession or post-possession of the Premises.

1f Lines 36-38 Addenda Incorporated if the appropriate box is checked. The agents need to make sure that they mark the
addendums that are to be attached to the contract. Portions of the contract address the various addenda and automatically
incorporate that addendum to the contract.

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