The Oklahoma Real Estate Form, approved by the Oklahoma Real Estate Commission and created by the Oklahoma Real Estate Contract Form Committee, is a foundational document used in the sale of real estate properties, specifically surface rights, in the state of Oklahoma. It outlines the legally binding agreements between buyers and sellers, covering everything from the property's purchase price and legal descriptions to closing conditions and any attached supplements. For a smooth real estate transaction that secures your interests, understanding and correctly filling out this form is crucial. Make sure to click the button below to begin filling out your Oklahoma Real Estate Form with confidence.
The Oklahoma Real Estate Commission's Uniform Contract of Sale of Real Estate streamlines the process of buying and selling property within the state, specifically focusing on surface rights. Developed by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission, this legally binding document outlines the entirety of the agreement between the seller and the buyer, including any additional supplements such as conventional, FHA, or VA financing among others. It expressly states the obligations of both parties, including the execution of the contract through original signatures, the description and address of the property, payment terms including earnest money, and closing details. The contract also specifies included accessories, equipment, and systems; time frames for investigations, inspections, reviews, and financing; as well as how to handle repairs and treatments. It covers risk of loss provisions, acceptance of the property’s condition at the time of sale, and detailed title evidence provision to ensure the buyer is informed about the legal status of the property. Additionally, it delineates conditions concerning taxes, assessments, prorations, residential service agreements, and includes provisions for mediation in case of disputes, and outlines the steps in case of breach by either party. The thoroughness of this document ensures clarity and mutual understanding, aiming to protect all parties involved in real estate transactions in Oklahoma.
OKLAHOMA REAL ESTATE COMMISSION
This is a legally binding Contract;
if not understood seek advice from an attorney
OKLAHOMA UNIFORM CONTRACT OF
SALE OF REAL ESTATE
(SURFACE RIGHTS ONLY)
This form was created by the Oklahoma Real Estate Contract Form Committee and approved by the Oklahoma Real Estate Commission.
CONTRACT DOCUMENTS. The Contract is deined as this document with the following attachment(s):
(check as applicable)
____ Conventional Supplemental
___ Single Family Homeowner’s Association Supplemental
____ FHA Supplemental
___ Condominium/Townhouse Association Supplemental
____ VA Supplemental
___ Supplemental Addendum
____ Assumption/Other
___ ______________________
PARTIES. THE CONTRACT is entered into between:
___________________________________________________________________________________________________________“Seller”
and _________________________________________________________________________________________ “Buyer”.
The Parties’ signatures at the end of the Contract, which includes any attachments or documents incorporated by reference, with delivery to their respective Brokers, if applicable, will create a valid and binding Contract, which sets forth their complete understanding of the terms of the Contract. The Contract shall be executed by original signatures of the parties or by signatures as relected on separate identical Contract counterparts (carbon, photo or fax copies).All prior verbal or written negotiations, representations and agreements are superceded by the Contract, which may only be modiied or assigned by a further written agreement of Buyer and Seller.
Seller agrees to sell and convey by General Warranty Deed, and Buyer agrees to accept such deed and buy the Property described herein, on the following terms and conditions:
The Property shall consist of the following described real estate located in _____________________________ County, Oklahoma.
1. LEGAL DESCRIPTION. ____________________________________________________________________________
___________________________________________________________________________________________________
______________________________________________________________________________________________________________
Property Address
City
Zip
Together with all ixtures and improvements, and all appurtenances, subject to existing zoning ordinances, plat or deed restrictions, utility easements serving the Property, (collectively referred to as “the Property”); less and except all the oil, gas and other minerals in and under and that may be produced from the Property.
2.PURCHASE PRICE, EARNEST MONEY AND SOURCE OF FUNDS. This is a CASH TRANSACTION unless a Financing Supplement Agreement is attached. The Purchase Price is $_____________________ payable by Buyer as follows: Buyer has paid $____________ as Earnest Money on execution of the Contract, and Buyer shall pay the balance of the purchase price and Buyer’s Closing costs at Closing. Upon execution of the Contract, the Earnest Money shall be deposited in the trust account of ______________________________________or if left blank, the Listing Broker’s trust account, as part payment of the purchase price and/or closing costs. If interest accrues on Earnest Money Deposit in Listing Broker’s trust account, said interest shall be paid to “Oklahoma Housing Foundation”.
3. CLOSING, FUNDING AND POSSESSION. The Closing process includes execution of documents, delivery of deed and receipt of funds by Seller and shall be completed on or before _____________________________________, (“Closing
Date”) or not later than ive (5) days thereafter caused by a delay of the Closing process, or such later date as may be necessary in the Title Evidence provision (reference Paragraph 10 D and E). Possession shall be transferred upon conclusion of Closing process unless otherwise provided below:
__________________________________________________________________________________________________.
In addition to costs and expenses otherwise required to be paid in accordance with terms of the Contract, Buyer shall pay Buyer’s Closing fee, Buyer’s recording fees, and all other expenses required from Buyer. Seller shall pay documentary stamps required, Seller’s Closing fee, Seller’s recording fees, if any, and all other expenses required from Seller. Funds required from Buyer and Seller at Closing shall be either cash, cashier’s check or wire transfer.
OREC CONTRACT OF SALE (11-2009-R)
Page 1 of 6
PROPERTY ADDRESS___________________________________________________________________________________________________________
4.ACCESSORIES, EQUIPMENT AND SYSTEMS. The following items, if existing on the Property, unless otherwise excluded, shall remain with the Property at no additional cost to Buyer:
• Attic and ceiling fan(s)
• Fireplace inserts, logs, grates, doors
• Outside cooking unit(s), if attached
• Bathroom mirror(s)
and screens
• Propane tank(s) if owned
• Other mirrors, if attached
• Free standing heating unit(s)
• TV antennas/satellite dish system(s)
• Central vacuum & attachments
• Humidiier(s), if attached
and control(s), if owned
• Floor coverings, if attached
• Water conditioning systems, if
• Sprinkler systems & control(s)
• Key(s) to the property
owned
• Swimming Pool/Spa equipment/
• Built-in and under cabinet/counter
• Window treatments & coverings,
accessories
appliance(s)
interior & exterior
• Attached recreational equipment
• Free standing slide-in/drop-in
• Storm windows, screens & storm
• Exterior landscaping and lighting
kitchen stove
doors
• Entry gate control(s)
• Built-in sound system(s)/speaker(s)
• Garage door opener(s) & remote
• Water meter, sewer/trash
• Lighting & light ixtures
transmitting unit(s)
membership, if owned
• Fire, smoke and security system(s), if
• Fences (includes sub-surface
• All remote controls, if applicable
electric & components)
• Transferable Service Agreements
• Shelving, if attached
• Mailboxes/Flag poles
and Product Warranties
A.Additional Inclusions. The following items shall also remain with the Property at no additional cost to Buyer:
_______________________________________________________________________________________________
________________________________________________________________________________________________
B.Exclusions. The following items shall not remain with the Property: _____________________________________
___________________________________________________________________________________________.
5.TIME PERIODS SPECIFIED IN CONTRACT. Time periods for Investigations, Inspections and Reviews and Financing Supplement Agreement shall commence on ______________________________ (Time Reference Date), regardless of the date the Contract is signed by Buyer and Seller. The day after the Time Reference Date shall be counted as day one (1). If left blank, the Time Reference Date shall be the third day after the last date of signatures of the parties.
6.RESIDENTIAL PROPERTY CONDITION DISCLOSURE. No representations by Seller regarding the condition of Property or environmental hazards are expressed or implied, other than as speciied in the Oklahoma Residential Property Condition Disclosure Statement (“Disclosure Statement”) or the Oklahoma Property Condition Disclaimer Statement (“Disclaimer Statement”), if applicable. A real estate licensee has no duty to Seller or Buyer to conduct an independent inspection of the Property and has no duty to independently verify accuracy or completeness of any statement made by Seller in the Disclosure Statement and any amendment or the Disclaimer Statement.
7.INVESTIGATIONS, INSPECTIONS and REVIEWS.
A.Buyer shall have ______ days (10 days if left blank) after the Time Reference Date to complete any investigations, inspections, and reviews. Seller shall have water, gas and electricity turned on and serving the Property for Buyer’s inspections, and through the date of possession or Closing, whichever occurs irst. If required by ordinance, Seller, or Seller’s Broker, if applicable, shall deliver to Buyer, in care of Buyer’s Broker, if applicable, within ive (5) days after the Time Reference Date any written notices affecting the Property.
B.Buyer, together with persons deemed qualiied by Buyer and at Buyer’s expense, shall have the right to enter upon the Property to conduct any and all investigations, inspections, and reviews of the Property. Buyer’s right to enter upon the Property shall extend to Oklahoma licensed Home Inspectors and licensed architects for purposes of performing a home inspection. Buyer’s right to enter upon the Property shall also extend to registered professional engineers, professional craftsman and/or other individuals retained by Buyer to perform a limited or specialized investigation, inspection or review of the Property pursuant to a license or registration from the appropriate State licensing board, commission or department. Finally, Buyer’s right to enter upon the Property shall extend to any other person representing Buyer to conduct an investigation, inspection and/or review which is lawful but otherwise unregulated or unlicensed under Oklahoma Law. Buyer’s investigations, inspections, and reviews may include, but not be limited to, the following:
1)Disclosure Statement or Disclaimer Statement unless exempt
2)Flood, Storm Run off Water, Storm Sewer Backup or Water History
3)Psychologically Impacted Property and Megan’s Law
4)Hazard Insurance (Property insurability)
5)Environmental Risks, including, but not limited to soil, air, water, hydrocarbon, chemical, carbon, asbestos, mold, radon gas, lead-based paint
6)Roof, structural members, roof decking, coverings and related components
7)Home Inspection
8)Structural Inspection
9)Fixtures, Equipment and Systems Inspection. All ixtures, equipment and systems relating to plumbing (including sewer/septic system and water supply), heating, cooling, electrical, built-in appliances, swimming pool, spa, sprinkler systems, and security systems
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10)Termites and other Wood Destroying Insects Inspection
11)Use of Property. Property use restrictions, building restrictions, easements, restrictive covenants, zoning ordinances and regulations, mandatory Homeowner Associations and dues
12)Square Footage. Buyer shall not rely on any quoted square footage and shall have the right to measure the Property.
13)_________________________________________________________________________________________
C. TREATMENTS, REPAIRS AND REPLACEMENTS (TRR).
1)TERMITE TREATMENTS AND OTHER WOOD DESTROYING INSECTS. Seller’s obligation to pay treatment and repair cost in relation to termites and other wood destroying insects shall be limited to the residential structure, garage(s) and other structures as designated in Paragraph 13 and as provided in subparagraph C2b below.
2)TREATMENTS, REPAIRS, REPLACEMENTS AND REVIEWS. Buyer or Buyer’s Broker, if applicable, within 24 hours after expiration of the time period referenced in 7A, shall deliver to Seller, in care of the Seller’s Broker, if applicable, a copy of all written reports obtained by Buyer, if any, pertaining to the Property and Buyer shall select one of the following:
a.If, in the sole opinion of the Buyer, results of Investigations, Inspections or Reviews are unsatisfactory, the Buyer may cancel the Contract by delivering written notice of cancellation to Seller, in care of Seller’s Broker, if applicable, and receive refund of Earnest Money.
OR
b.Buyer, upon completion of all Investigations, Inspections and Reviews, waives Buyer’s right to cancel as provided in Paragraph 7, subparagraph C2a above, by delivering to Seller, in care of Seller’s Broker, if applicable, a written list on a Notice of Treatments, Repairs, and Replacements form (TRR form) of those items to be treated, repaired or replaced (including repairs caused by termites and other wood destroying insects) that are not in normal working order (deined as the system or component functions without defect for the primary purpose and manner for which it was installed. Defect means a condition, malfunction or problem, which is not decorative, that will have a materially adverse effect on the value of a system or component).
i.Seller shall have _______ days (5 days if blank) after receipt of the completed TRR form from Seller’s Broker, if applicable, to obtain costs estimates. Seller agrees to pay up to $__________ (“Repair Cap”) of costs of TRR’s. If Seller, or Seller’s Broker, if applicable, obtains cost estimates which exceed Repair Cap, Seller, or Seller’s Broker, if applicable, shall notify Buyer or Buyer’s Broker, if applicable, in writing, within two days after receipt of cost estimates.
If the amount of the TRR’s exceed the amount of the Repair Cap, Buyer and Seller shall have _____ days (3 days if blank) thereafter to negotiate the payment of costs in excess of Repair Cap. If a written agreement is reached, Seller shall complete all agreed TRR’s prior to the Closing Date. If an agreement is not reached within the time speciied in this provision, the Contract shall become null and void and Earnest Money returned to Buyer.
ii.If Seller fails to obtain cost estimates within the stated time, Buyer shall then have ______ days (5 days if blank) to:
a)Enter upon the Property to obtain costs estimates and require Seller to be responsible for all TRR’s as noted on Buyer’s TRR form, up to the Repair Cap; and,
b)If the amount of the TRR’s exceed the amount of the Repair Cap, Buyer and Seller shall have _____
days (3 days if blank) thereafter to negotiate the payment of costs in excess of Repair Cap. If a written agreement is reached, Seller shall complete all agreed TRR’s prior to the Closing Date. If an agreement is not reached within the time speciied in this provision, the Contract shall become null and void and Earnest Money returned to Buyer.
D.EXPIRATION OF BUYER’S RIGHT TO CANCEL CONTRACT.
1)Failure of Buyer to complete one of the following shall constitute acceptance of the Property regardless of its condition:
a.Perform any Investigations, Inspections or Reviews;
b.Deliver a written list on a TRR form of items to be treated, repaired and replaced; or
c.Cancel the Contract within the time periods in Investigations, Inspections or Reviews Paragraph.
2)After expiration of the time periods in Investigations, Inspections and Reviews Paragraph, Buyer’s inability to obtain a loan based on unavailability of hazard insurance coverage shall not relieve the Buyer of the obligation to close transaction.
3)After expiration of the time periods in Investigations, Inspections and Reviews Paragraph, any square footage calculation of the dwelling, including but not limited to appraisal or survey, indicating more or less than quoted, shall not relieve the Buyer of the obligation to close this transaction.
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E.INSPECTION OF TREATMENTS, REPAIRS AND REPLACEMENTS AND FINAL WALK-THROUGH.
1)Buyer, or other persons Buyer deems qualiied, may perform re-inspections of Property pertaining to Treatments, Repairs and Replacements.
2)Buyer may perform a inal walk-through inspection, which Seller may attend. Seller shall deliver Property in the same condition as it was on the date upon which Contract was signed by Buyer (ordinary wear and tear excepted) subject to Treatments, Repairs and Replacements.
3)All inspections and re-inspections shall be paid by Buyer, unless prohibited by mortgage lender.
8.RISK OF LOSS. Until transfer of Title or transfer of possession, risk of loss to the Property, ordinary wear and tear excepted, shall be upon Seller; after transfer of Title or transfer of possession, risk of loss shall be upon Buyer. (Parties are advised to address insurance coverage regarding transfer of possession prior to Closing.)
9.ACCEPTANCE OF PROPERTY. Buyer, upon accepting Title or transfer of possession of the Property, shall be deemed to have accepted the Property in its then condition. No warranties, expressed or implied, by Sellers, Brokers and/or their associated licensees, with reference to the condition of the Property, shall be deemed to survive the Closing.
10.TITLE EVIDENCE.
A.BUYER’S EXPENSE. Buyer, at Buyer’s expense, shall obtain: (Check one)
Attorney’s Title Opinion, which is not rendered for Title Insurance purposes.
Commitment for Issuance of a Title Insurance Policy based on an Attorney’s Title Opinion which is rendered for Title Insurance purposes for the Owner’s and Lender’s Title Insurance Policy.
B.SELLER’S EXPENSE. Seller, at Seller’s expense, within thirty (30) days prior to Closing Date, agrees to make available to Buyer the following (collectively referred to as “the Title Evidence”):
1)A complete surface-rights-only Abstract of Title, last certiied to a date subsequent to the Time Reference Date, by an Oklahoma licensed and bonded abstract company;
A copy of Seller’s existing owner’s title insurance policy issued by a title insurer licensed in the State of Oklahoma together with a supplemental surface-rights-only abstract last certiied to a date subsequent to the Time Reference Date, by an Oklahoma licensed and bonded abstract company;
2)A current Uniform Commercial Code Search Certiicate; and
3)An inspection certiicate (commonly referred to as a “Mortgage Inspection Certiicate”) prepared subsequent to the Time Reference Date by a licensed surveyor, which shall include a representation of the boundaries of the Property (without pin stakes) and the improvements thereon.
C.LAND OR BOUNDARY SURVEY. By initialing this space _______, Buyer agrees to waive Seller’s obligation to provide a Mortgage Inspection Certiicate. Seller agrees that Buyer, at Buyer’s expense, may have a licensed surveyor enter upon the Property to perform a Land or Boundary (Pin Stake) Survey, in lieu of a Mortgage Inspection Certiicate, that shall then be considered as part of the Title Evidence.
D.BUYER TO EXAMINE TITLE EVIDENCE.
1)Buyer shall have ten (10) days after receipt to examine the Title Evidence and to deliver Buyer’s objections to Title to Seller or Seller’s Broker, if applicable. In the event the Title Evidence is not made available to Buyer within ten (10) days prior to Closing Date, said Closing Date shall be extended to allow Buyer the ten (10) days from receipt to examine the Title Evidence.
2)Buyer agrees to accept title subject to: (i) utility easements serving the property, (ii) building and use restrictions of record, (iii) set back and building lines, (iv) zoning regulations, and (v) reserved and severed mineral rights, which shall not be considered objections for requirements of Title.
E.SELLER TO CORRECT ISSUES WITH TITLE (IF APPLICABLE), POSSIBLE CLOSING DELAY. Upon receipt by Seller, or in care of Seller’s Broker, if applicable, of any title requirements relected in an Attorney’s Title Opinion or Title Insurance Commitment, based upon the standard of marketable title set out in the Title Examination Standards of the Oklahoma Bar Association, the parties agree to the following:
1)Seller, at Seller’s expense, shall make reasonable efforts to obtain and/or execute all documents necessary to cure title requirements identiied by Buyer; and
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2)Delay Closing Date for ______ days [thirty (30) days if blank], or a longer period as may be agreed upon in writing, to allow Seller to cure Buyer’s title requirements. In the event Seller cures Buyer’s objection prior to the delayed Closing Date, Buyer and Seller agree to close within ive (5) days of notice of such cure. In the event that title requirements are not cured within the time speciied in this subparagraph, the Buyer may cancel the Contract and receive a refund of Earnest Money.
F.Upon Closing, any existing Abstract(s) of Title, owned by Seller, shall become the property of Buyer.
11.TAXES, ASSESSMENTS AND PRORATIONS.
A.The following items shall be prorated to include the date of Closing: (i) General ad valorem taxes for the current calendar year, if certiied. However, if the amount of such taxes has not been ixed, the proration shall be based upon the rate of levy for the previous calendar year and the most current assessed value available at the time of Closing; and (ii) Homeowner’s Association assessments and dues, if any, based on most recent assessments.
B.The following items shall be paid by Seller at Closing: (i) All special assessments against the Property (matured or not matured), whether or not payable in installments; (ii) Documentary Stamps; (iii) all utility bills, actual or estimated; (iv) all taxes other than general ad valorem taxes which are or may become a lien against the Property; (v) any labor, materials, or other expenses related to the Property, incurred prior to Closing which is or may become a lien against the Property.
C.At Closing all leases, if any, shall be assigned to Buyer and security deposits, if any, shall be transferred to Buyer. Prepaid rent and lease payments shall be prorated through the date of Closing.
D.If applicable, membership and meters in utility districts to include, but not limited to, water, sewer, ambulance, ire, garbage, shall be transferred at no cost to Buyer at Closing.
12.RESIDENTIAL SERVICE AGREEMENT. (CHECK ONE)
A. The Property shall not be covered by a Residential Service Agreement.
B. Seller currently has a Residential Service Agreement in effect on the Property. Seller, at Seller’s expense, shall transfer the agreement with one (1) year coverage to the Buyer at Closing.
C. The Property shall be covered by a Residential Service Agreement selected by the Buyer at an approximate cost of $_________. Seller agrees to pay $_______ and Buyer agrees to pay the balance.
The Seller and Buyer acknowledge that the real estate broker(s) may receive a service/administration fee for the referral and processing of the Residential Service Agreement.
Buyer acknowledges that a Residential Service Agreement does not replace/substitute Property inspection rights.
13.ADDITIONAL PROVISIONS.
__________________________________________________________________________________________________
_____________________________________________________________________________________________________
____________________________________________________________________________________________________
14.MEDIATION. Any dispute arising with respect to the Contract shall irst be submitted to a dispute resolution mediation system servicing the area in which the Property is located. Any settlement agreement shall be binding. In the event an agreement is not reached, the parties may pursue legal remedies as provided by the Contract.
15.BREACH AND FAILURE TO CLOSE.
A.UPON BREACH BY SELLER. If the Buyer performs all of the obligations of Buyer, and if, within ive (5) days after the date speciied for Closing under Paragraph 3, Seller fails to convey the Title or fails to perform any other obligations of the Seller under this Contract, then Buyer shall be entitled to either cancel and terminate this Contract, return the abstract to Seller and receive a refund of the Earnest Money, or pursue any other remedy available at law or in equity, including speciic performance.
B.UPON BREACH BY BUYER. If, after the Seller has performed Seller’s obligation under this Contract, and if, within ive
(5) days after the date speciied for Closing under Paragraph 3, the Buyer fails to provide funding, or to perform any other obligations of the Buyer under this Contract, then the Seller may, at Seller’s option, cancel and terminate this Contract and retain all sums paid by the Buyer, but not to exceed 5% of the purchase price, as liquidated damages, or pursue any other remedy available at law or in equity, including speciic performance.
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16.INCURRED EXPENSES AND RELEASE OF EARNEST MONEY.
A.INCURRED EXPENSES. Buyer and Seller agree that any expenses, incurred on their behalf, shall be paid by the party incurring such expenses and shall not be paid from Earnest Money.
B.RELEASE OF EARNEST MONEY. In the event a dispute arises prior to the release of Earnest Money held in escrow, the escrow holder shall retain said Earnest Money until one of the following occur:
1)A written release is executed by Buyer and Seller agreeing to its disbursement;
2)Agreement of disbursement is reached through Mediation;
3)Interpleader or legal action is iled, at which time the Earnest Money shall be deposited with the Court Clerk; or
4)The passage of thirty (30) days from the date of inal termination of the Contract has occurred and options 1), 2) or 3) above have not been exercised; Broker escrow holder, at Broker’s discretion, may disburse Earnest Money. Such disbursement may be made only after ifteen (15) days written notice to Buyer and Seller at their last known address stating the escrow holder’s proposed disbursement.
17.DELIVERY OF ACCEPTANCE OF OFFER OR COUNTEROFFER. The Buyer and Seller authorize their respective Brokers, if applicable, to receive delivery of an accepted offer or counteroffer.
18.NON-FOREIGN SELLER. Seller represents that at the time of acceptance of this contract and at the time of Closing, Seller is not a “foreign person” as such term is deined in the Foreign Investments in Real Property Tax Act of 1980 (26 USC Section 1445(f) et. Sec) (“FIRPTA”). If either the sales price of the property exceeds $300,000.00 or the buyer does not intend to use the property as a primary residence then, at the Closing, and as a condition thereto, Seller shall furnish to Buyer an affidavit, in a form and substance acceptable to Buyer, signed under penalty of perjury containing Seller’s United States Social Security and/or taxpayer identiication numbers and a declaration to the effect that Seller is not a foreign person within the meaning of Section “FIRPTA.”
19.EXECUTION BY PARTIES.
AGREED TO BY BUYER:
AGREED TO BY SELLER:
On This Date_____________________________________
________________________________________________
Buyer’s Printed Name
Seller’s Printed Name
Buyer’s Signature
Seller’s Signature
TERMINATION OF OFFER. The above Offer shall automatically terminate on _______________________ at 5:00 p.m.,
unless withdrawn prior to acceptance or termination.
EARNEST MONEY RECEIPT AND INSTRUCTIONS
Receipt of $_____________________
Check
Cash as Earnest Money Deposit, to be deposited in accordance with
the terms and conditions of PURCHASE PRICE, EARNEST MONEY, AND SOURCE OF FUNDS Paragraph. Broker(s) acknowledges receipt of Earnest Money and Listing Broker, if applicable, shall deposit said funds in accordance with Paragraph 2 of this Contract. If deposited in an escrow account other than the Listing Broker, the Listing Broker, if applicable, shall provide a copy of receipt to the Selling Broker.
______
________________________________________
Date
Selling Broker/Associate Signature
Listing Broker/Associate Signature
(Print Name) Selling Broker/Associate
(Print Name) Listing Broker/Associate
Company Name
Address
Phone
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Embarking on the journey of buying or selling real estate in Oklahoma requires a crucial step: filling out the Oklahoma Real Estate Commission's Uniform Contract of Sale of Real Estate (Surface Rights Only). This form, a staple in real estate transactions within the state, ensures that all parties are clear on the terms of the agreement. Understanding its components and filling it out correctly shields both buyers and sellers from potential misunderstandings or legal issues down the line. Here's a detailed guide to help navigate through this essential document.
Upon completion, ensure that all parties review the document for accuracy and completeness before signing. The Oklahoma Real Estate Contract is a legally binding document, so consider consulting with an attorney if there are any components you do not understand. Properly executing this form is a significant step towards a successful real estate transaction in Oklahoma.
FAQs about the Oklahoma Real Estate Contract Form
What is the Oklahoma Uniform Contract of Sale of Real Estate? It's an approved legal document by the Oklahoma Real Estate Commission and the Real Estate Contract Form Committee for transactions involving the sale of real estate (surface rights only) in Oklahoma. It outlines the terms and conditions agreed upon by buyer and seller.
Who needs to sign the Oklahoma Real Estate Contract? Both the seller and the buyer need to sign the contract. Their signatures, along with those of any brokers involved, make the contract valid and legally binding. The contract can be executed with original signatures or copies depending on the method (carbon, photo, or fax copies).
Can the Contract be modified or assigned? Yes, the Contract can only be modified or assigned through a written agreement signed by both the buyer and seller. This ensures that any changes to the original contract terms are formally acknowledged by both parties.
What is included in the purchase price? The purchase price includes the property described in the contract along with all fixtures and improvements, appurtenances, and, unless specifically excluded, all attached equipment and systems. However, oil, gas, and other minerals are expressly excluded from the sale.
How are earnest money deposits handled? Upon signing the contract, the buyer is required to pay a specified amount as earnest money, which will be deposited into a trust account. This amount is later applied towards the purchase price and/or closing costs of the property.
What does the closing process involve? The closing process includes the execution of necessary documents, the delivery of the deed by the seller, and receipt of payment by the seller. Closing costs and other expenses associated with the sale are paid according to the contract's terms, with specific duties for both buyer and seller. The method of payment at closing is typically specified as cash, cashier's check, or wire transfer.
Are there specified time periods for certain actions under the contract? Yes, the contract outlines time periods for actions such as investigations, inspections, reviews, and the handling of the Residential Property Condition Disclosure. Failing to adhere to these timelines can affect the rights and obligations of both parties.
What happens if there are disputes or breaches in the contract? Disputes arising from the contract should first be submitted to a dispute resolution mediation system. If a settlement is not reached, parties can seek legal remedies. Specific consequences are outlined for breaches by either the buyer or the seller, including termination of the contract and potential for liquidated damages.
How is title evidence handled? Buyers are responsible for obtaining title evidence at their expense, and sellers must provide certain title-related documents prior to closing. If issues with the title are found, the seller is tasked with correcting them, potentially delaying the closing date until resolved.
Failing to Review All Attachments: The Contract highlights the importance of including relevant attachments such as conventional, FHA, VA supplements, and others. Overlooking or neglecting to attach these supplemental agreements can lead to misunderstandings or incomplete contractual agreements.
Incorrect or Incomplete Information in the Parties Section: A common mistake is not properly filling out the information regarding buyers and sellers. This section is crucial for identifying the involved parties. Inaccuracies or incomplete information can invalidate the agreement or, at the very least, lead to significant delays.
Inadequate Description of the Property: Not providing a full legal description of the property, including its address and all relevant details, can cause legal challenges. Ensuring all fixtures, improvements, and appurtenances are correctly listed is vital for the clear understanding and transfer of what is being sold.
Misunderstanding Earnest Money and Purchase Price Details: This section requires careful attention to detail regarding the payment structure and the earnest money deposit. Failing to accurately represent these financial commitments can misrepresent the terms of the sale, potentially leading to disputes.
Omitting Seller and Buyer Obligations: The contract outlines specific obligations for both the seller and the buyer regarding closing costs, possession, and prorations. Misunderstandings or failures to include necessary information about these obligations can result in unforeseen expenses or contractual breaches.
Ignoring Key Deadlines and Time Periods: Each section of this contract that references a deadline, such as the closing date, time periods for investigations, inspections, and reviews, as well as for obtaining title evidence, is crucial. Overlooking these deadlines can jeopardize the transaction, potentially leading to the forfeiture of earnest money or the collapse of the sale itself.
In sum, individuals engaging with the Oklahoma Uniform Contract of Sale of Real Estate must do so with diligence and thoroughness. Ensuring every aspect of the contract is accurately completed and understood not only safeguards the legal interests of all parties but also facilitates a smoother transactional process. Attention to detail and, when necessary, seeking legal guidance are the pillars of successfully navigating real estate sales agreements.
When you're diving into the world of real estate in Oklahoma, it's important to remember that the journey involves more than just the Oklahoma Real Estate Commission's Uniform Contract of Sale of Real Estate (Surface Rights Only). To ensure a seamless transaction, several other key documents and forms often come into play. Let’s explore some of these essential pieces of paperwork that are commonly used alongside the primary contract in real estate transactions.
Navigating a real estate transaction can seem daunting with all these documents and more involved. However, each plays a vital role in protecting the interests of both buyers and sellers, ensuring that the property changes hands smoothly and with a clear understanding from all parties. As always, seeking advice from real estate professionals and legal advisors can provide clarity and guidance throughout this complex process.
The Oklahoma Real Estate Commission’s Uniform Contract of Sale of Real Estate is akin to a Residential Purchase Agreement, commonly utilized in various states, which also outlines the terms and conditions under which a residential property is sold and transferred from seller to buyer. This legal document serves as an agreement between the two parties, detailing the purchase price, property description, and conditions that must be met before the sale is finalized, similar to the Oklahoma form’s structure of defining property details, price, and contractual obligations of the parties involved.
Another document resembling the Oklahoma Real Estate form is the Earnest Money Agreement, which, like the Oklahoma form, includes an earnest money deposit as a sign of the buyer's commitment to proceed with the property purchase. It emphasizes the importance of the deposit in securing the transaction and outlines the conditions under which the deposit may be returned to the buyer or retained by the seller, thereby underlining the earnest money’s role in the real estate transaction process.
Comparable to the section on property access for inspections in the Oklahoma Real Estate form is the Property Inspection Report. This document details the findings of a property inspection, including the status of various systems and components of the property. It plays a crucial role in informing the buyer about the property's condition, potentially influencing the decision to proceed with the purchase or negotiate repairs, mirroring how inspections are addressed within the Oklahoma contract.
The Title Insurance Commitment closely aligns with the Title Evidence provisions of the Oklahoma Real Estate form. It provides a preliminary report of the title's status and outlines the terms under which the title insurance company agrees to issue a title insurance policy. This ensures the buyer receives a property free of undisclosed liens or encumbrances, paralleling the Oklahoma form’s requirements for title review and assurance.
The Addendum for Property Subject to Mandatory Membership in a Property Owners Association, similar to supplemental sections in the Oklahoma Real Estate form, provides details about the community association governing the property, including dues and any specific restrictions. It supplements the main real estate contract by detailing additional terms related to properties in such communities, aligning with the flexibility the Oklahoma form offers through its supplemental addenda for different property types.
Comparable to the Financing Supplemental Addendum in the Oklahoma Real Estate form, the Mortgage Commitment Letter from a lender confirms a buyer’s approval for a loan under specified terms. This document is essential for transactions requiring financing, ensuring the buyer can fulfill the purchase price obligation. It aligns with the Oklahoma form’s provisions for transactions contingent on financing.
The Property Disclosure Statement, while not a contract itself, is a fundamental document that sellers complete to disclose the condition of the property, closely paralleling the condition disclosures in the Oklahoma contract. This document is crucial for transparency in the transaction, informing the buyer of any known issues with the property before the purchase, which is an integral part of the agreement process outlined in the Oklahoma form.
The Lead-Based Paint Disclosure mirrors the Oklahoma form’s approach to disclosing specific property conditions, a requirement in sales of homes built before 1978. By informing buyers of the presence of lead-based paint, it addresses health and safety concerns that could affect the transaction, similar to how the Oklahoma contract includes provisions for property inspections and disclosures.
Similarly, the Homeowners' Association (HOA) Resale Certificate, which provides buyers with critical information about the rules, regulations, and financial health of an HOA, mirrors the supplemental options in the Oklahoma Real Estate form that deal with properties governed by an HOA. This ensures that buyers are well-informed about additional obligations and conditions that come with purchasing a property within an HOA.
Last is the Contingency Removal Form, which, like aspects of the Oklahoma Real Estate form, is used to document the satisfaction or waiver of conditions that must be met before proceeding to closing. This form formalizes the parties’ agreement to move forward with the transaction after all conditions, such as financing or inspection contingencies, have been addressed, underscoring the process of clearing contingencies detailed in the Oklahoma contract.
When it comes to dealing with real estate transactions in Oklahoma, precision and awareness are key. Whether you're buying or selling property, the Oklahoma Real Estate Commission provides forms that are crucial in these transactions. Filling out these forms correctly is not just recommended; it's essential. Here are some dos and don'ts to keep in mind:
Dos:
Review every section carefully to ensure all necessary parts are completed. This can include attachments and supplemental addenda that apply to your specific transaction.
Understand the terms set forth regarding the purchase price, earnest money, and source of funds. Make sure the amounts are correct and agreed upon by both parties.
Pay attention to the deadlines for closing, funding, possession, and all specified time periods for inspections and reviews. Timing is critical, and missing a deadline can have serious implications.
Consult an attorney if there is any part of the contract that you do not understand. It's a binding legal document, and getting legal advice can help prevent any misunderstandings or legal issues down the line.
Don'ts:
Do not leave any sections incomplete unless they truly do not apply to your transaction. An incomplete form can delay the process or cause issues at closing.
Avoid making handwritten changes to the form without clear acknowledgment and agreement from both the buyer and seller. Any modifications should ideally be made with an addendum or in a manner that's clearly documented and agreed upon.
Do not ignore the property condition disclosures. Whether you're the buyer or the seller, understanding the condition of the property as stated in the disclosures is essential for a transparent transaction.
Do not rush through the sections related to title evidence and inspections. These are vital for understanding the legal standing of the property and its physical condition. Skimming over these sections can lead to unexpected issues later on.
Remember, the contract is there to protect both the buyer and the seller. Taking the time to fill it out properly ensures that the interests of all parties are safeguarded.
When dealing with the Oklahoma Real Estate Commission's Uniform Contract of Sale of Real Estate (SURFACE RIGHTS ONLY) form, several misconceptions can lead to confusion and misunderstandings. Clarification on these points can help both buyers and sellers navigate their real estate transactions more effectively.
Many believe that the contract is only applicable for the sale of vacant land, given its emphasis on "surface rights only." However, it actually encompasses the sale of real estate in its entirety, including any structures existing on the property unless specifically excluded.
Another common misconception is that the contract does not need an attorney’s review if the transaction appears straightforward. Regardless of the transaction's complexity, it's advisable to seek legal guidance to ensure all parties fully understand their rights and obligations.
Some think that all attached fixtures and improvements are automatically included in the sale. While many are, the contract explicitly lists which items remain with the property and which do not. Any deviations from this list should be clearly stated in the contract.
There is a belief that earnest money is optional. In reality, earnest money is a critical component of the contract, demonstrating the buyer's good faith. This sum is to be deposited into a trust account as specified in the contract.
It's wrongly assumed that the closing date is flexible without any need for formal agreement. The contract specifies a closing date, and any changes to this date require agreement from both parties.
Some parties misunderstand the duties of real estate agents in the transaction, believing they are responsible for ensuring the accuracy of the property condition. Although agents play a crucial role, the ultimate responsibility for property inspections and disclosures lies with the buyer and seller.
There's a misconception that modifications to the property by the buyer before closing are permitted. In fact, any changes to the property prior to transfer of title or possession need the seller’s explicit consent.
Another misconception is that the contract's terms regarding the property's condition relieve the buyer of the necessity to conduct thorough due diligence. Buyers are encouraged to perform comprehensive investigations, inspections, and reviews to fully understand the property's condition.
Lastly, it's incorrectly assumed that disputes arising from the contract cannot be mediated. The contract specifically provides for mediation as a first step in resolving disputes, potentially avoiding costly and time-consuming litigation.
Understanding these nuances is crucial for both buyers and sellers to ensure their interests are protected when entering into a contract governed by the Oklahoma Real Estate Commission.
When engaging with the Oklahoma Real Estate Commission's Uniform Contract of Sale of Real Estate, it's critical to recognize its legal significance and adhere to its requirements meticulously. Here are ten key takeaways to guide you through completing and using this form:
Understanding these key components of the Oklahoma Real Estate Commission's Uniform Contract of Sale of Real Estate ensures that parties are well-informed and prepared for a successful property transaction.
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