This is the most fundamental part of the residential purchase agreement: the correct identification of each of the parts and the property. Buyers and sellers are not only named and identified by the current address, but the real estate representation they have chosen is also identified by company. Indeed, a Virginia court recently ruled that a sales contract was not enforceable due to a lack of reciprocity, as the buyer did not have the right to take legal action for a given service. The buyer`s only recourse was the refund of the acompt. Interestingly, in its decision, the court suggested that the contract would likely have been considered enforceable if it had provided for interest on bail. There are several important conditions that are covered by the residential purchase agreement. Virginia real estate agents should be familiar and familiar with each section of the contract. Manufacture of methamphetamine at the site (§ 55-519.4) – If an apartment has previously been used for the production of methamphetamines and has not been cleaned in a manner consistent with the State guidelines of the Virginia Code § 32.1-11.7, it must be disclosed to a buyer. While Virginia is a known „prudent buyer“ state, there are a few mandatory disclosures in the contract. Septic System Disclosure (§ 55.1-703 (B) (8)) – A statement that informs the buyer that a house`s septic system is defective and needs to be repaired as soon as they acquire the property. Some suggest that your form purchase agreement does not explicitly limit the buyer`s remedies after the seller`s delay. If, in Virginia, a real estate contract is silent on the buyer`s remedies, the buyer has all legal remedies, including the right to pursue a particular performance.
In March, when the reality of the COVID-19 pandemic arrived, many government officials and business leaders, especially REALTORS® fought over how to handle the situation. In most cases, the buyer must secure financing from a lender to purchase the property. This comes from a totally separate set of contracts and documents called „Loan Docs“ together. Since they are only between the buyer and the lender, we will not discuss them in detail here. However, it is important to know that these credit documents must all be signed and notarized before the financing can be processed and the real estate transaction can be concluded. Disclosure of new dwellings (§ 55.1-706) – When a contracting authority builds a new apartment and the contracting authority sells the house with knowledge of factual defects that would lead to a violation of the Construction Code, it must disclose to the buyer the material defects in this declaration of disclosure. In addition, this disclosure must be given to the purchaser when the land is located in whole or in part in a mining area or if the land is located near abandoned pits, shafts or mines. The typical remedy for a buyer in the event of a seller`s delay is either to claim damages or to demand a specific service. In this way, developers, by trying to limit buyers` remedies, risk making the contract unenforceable.
Developers need to ensure that their form purchase contracts don`t go too far by depriving buyers of rights and limiting sellers` obligations. Your sales contract should explicitly state that in the event of a buyer`s delay, the seller`s right to withhold the deposit consists of lump sum damages and not any form of penalty. Damages considered as penalties are probably not considered enforceable. We can propose a language proposal for the provision that deals with the seller`s remedies after a delay by the buyer. In addition to the primary contracts that legally surround the real estate transaction, several disclosure forms are common when buying a residential property in Virginia. Unfortunately for homebuilders, many of their „form“ sales contracts were designed before the current downturn — at a time when sellers had all the benefits of negotiating — and the resulting deals were so biased in favor of sellers that some Virginia courts found them unenforceable. . . .