Hi there, I’m Marcie Billen and I’m a real estate agent in Norman, Oklahoma and today I want to explain to you the Oklahoma real estate contract that you might be using if you’re thinking about buying or selling a house here. The Oklahoma real estate contract is six pages and I’m going to break it down for you in a few different sections. There’s a lot of other things (supplements/addendums/forms) that go with the Oklahoma real estate contract too, depending on the offer or, terms for the house itself.
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Contract Documents
At the top of this Oklahoma real estate contract, we see a bunch of contract document boxes, right? When you mark one of these, that means there is a corresponding supplement to the contract. So conventional loan then FHA & VA loans are the two that we use the most. We have to disclose to the seller what type of loan is being used to purchase the house so that’s where these come in. I will make more posts about these loan supplements, how they work, and why they’re different because each one is very different. Other supplements we might include with this residential sale contract would be the single-family mandatory homeowner’s association (HOA), and that one we use quite a bit. The contingency contracts box depends on what we’re trying to do and how you’re trying to purchase the property, or sell if you’re a seller.
Parties
Underneath the supplements section on the real estate contract is the offer document, which technically, it’s actually not a contract until both parties have signed it, you see the seller and the buyer. That’s just their names and what the title company will use to convey title and then deed it out of someone’s name.
Legal Description
We have to say of course, which county this property is in because although there is only one Oklahoma real estate contract, the same address could be in another county or even city in Oklahoma. We have the legal description which is what the survey describes the property as, and then of course, the property address. Note that it says “together with all fixtures and improvements subject to existing zoning ordinances, plot or deed restrictions, utility easements serving the property including all mineral rights owned by the seller, including, but if the mineral rights have already been split from the property, then it is excluding all mineral rights and they can be owned separately from the actual land itself.
Purchase Price, Earnest Money, and Source of Funds
In the real estate contract, this is where we would write in how much you’re offering for the property itself – not the list price, but how much you’re offering. The second blank is the earnest money amount, so how much you’re going to put up for earnest money. There is not a hard and fast amount here, in Oklahoma and we’ll go into whether or not that’s refundable as well in a later section of this Oklahoma real estate contract series. The third blank is where the earnest money will be held; usually held at a title company or at the buyer’s agent’s trust account at their office. Sometimes a listing agent too, it totally depends. It says that you have to deliver the earnest money to that trust account within three days, but if the last day of those three days is a Saturday, Sunday, or a holiday, then we go ahead and move that to the next day.
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Closing, Funding & Possession
When you would be closing? And according to the Oklahoma real estate contract , closing means execution of documents, delivery of deed, and receipt of funds by seller. If you’re asking how many days you would typically have to do a closing, it’s usually 30 to 45 days, but can go longer or shorter, depending on the type of loan. At the bottom it says “in addition to costs and expenses otherwise required to be paid in accordance with terms of the contract, buyers shall pay buyers closing fee, buyers recording fees, and all other expenses required from the buyer. Sellers shall pay doc stamps, sellers closing fee, sellers recording fee, if any, and all other expenses required from the seller. Funds required from the buyer and seller at closing shall be cash, cashier check, wire transfer, or is determined by the provider of the settlement services.” Typically, not cash. Don’t bring cash to the closing table – it’s just not a good idea.
With this, if you’re wondering if there’s extra expenses outside of the actual price of the house, the answer is yes; there’s extra expenses. Each time we put in an offer for you, or if you’re the seller, each time you receive an offer, we do a buyer cost sheet or a seller net sheet to show you how much it’s either going to cost you to buy, or how much you’ll make on the sale. One of those extra documents we talked about earlier, that go with the Oklahoma real estate contract, although the cost/net sheets aren’t sent over to the other party with your offer. These are only estimates, though. You’ll see the final numbers when we get the settlement statement before closing. If you’re interested to know more, watch this video where I do an explanation of closing costs.
Well, that’s all I’m going to cover for the first part of the explanation of the Oklahoma real estate contract, but be sure to stay tuned for the next section! Also, if you have any questions in the meantime, please feel free to call or message me! Marcie Billen | [email protected], 918.691.8982
