When are disclosures and documents due using a CAR contract?

By
Services for Real Estate Pros with Escrowcoord.com

Hi All!

Received an email from a student named Debbie about time frames for disclosures and documents. Here's my response. I hope it helps! :-)

 

Debbie: We (company) are using Docusign which is a great time saver but I’m still confused as to how to determine time frames for all the various disclosures to be completed.  Any help or suggestions I can get is appreciated.  

 

Diana: If you take a look at the CAR contract, the seller usually has 7 days  from acceptance to deliver all required disclosures and reports to the buyer. (See page 5 14A) .

I like to see the disclosures and reports delivered to the buyer at MINIMUM 5 days prior to the buyer’s inspection contingency removal is due (See page 5 item 14B(3)). There is a clause allowing the buyer 5 days from delivery of the disclosure or document to review prior to removing the inspection contingency 

The Inspection/Loan/Appraisal/Deposit and Increased Deposits usually have a specified date for when they are due on the contract.

Hope this Helps! 


Comments (2)

Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Diana --- if at all possible, I like to have all disclosures, preliminary title report, natural hazards disclosure statement, city and other inspections available for the buyer to see prior to making their offer.   I have been on the other side with buyers and waiting for disclosures and reports that arrive haphazardly --- let show the public we are professionals.

Aug 14, 2011 12:43 PM
Diana Turnbloom
Escrowcoord.com - Martinez, CA
The Leading Expert in TC Services & Education

I absolutely agree, if you can pull together disclosures and reports for the buyer to review prior to writing, it certainly can provide a better history about the property.

As far as the seller's obligation to deliver reports and disclosures per the contract, some title companies won't provide a title report prior to an accepted offer.

Also, we may not know who the title company is going to be prior to an offer if the buyer gets to choose.

If this is the case, the buyer will need to approve the report from that particular company specified on the contract prior to removing the inspection contingency.

Many sellers doesn't want order an NHD report unless there is an accepted offer to avoid having to pay the fee out of pocket. If the agent pays for it -no problem! 

We also sometimes run into the problem of outdated reports and disclosures if the property has been on the market for a long time. 6 months is the maximum I will accept on any dated document.

Beware of pulling city permits/inspections yourself. Better the buyer performs these investigations themselves so you're not liable for potentially missing information. 

Thanks for your comment! :-)

 

Aug 14, 2011 01:05 PM