Friday, February 25, 2011

Contract Chronicles...

In section 8.2., of the Colorado Contract to Buy Sell, there is outlined a contingency for Matters Not Shown by the Public Records, or Off-Record Matters Deadline
The Contract Reads:
Seller shall deliver to Buyer, on or before Off-Record Matters Deadline true copies of all leases and surveys in Seller’s possession pertaining to the Property and shall disclose to Buyer all easements, liens (including, without limitation, governmental improvements approved, but not yet installed) or other title matters (including, without limitation, rights of first refusal and options) not shown by the public records of which Seller has actual knowledge. Buyer shall have the right to inspect the Property to investigate if any third party has any right in the Property not investigate if any third party has any right in the Property not shown by the public records (such as an unrecorded easement, unrecorded lease, boundary line discrepancy or water rights).  Written notice to terminate based on any unsatisfactory condition (whether disclosed by Seller or revealed by such inspection, notwithstanding § 13), in Buyer’s sole subjective discretion, by or on behalf of Buyer shall be delivered to Seller on or before Off- Record Matters Objection Deadline (§ 3). If Seller does not receive Buyer’s written notice to terminate on or before Off-Record Matters Objection Deadline (§ 3), Buyer accepts title subject to such rights, if any, of third parties of which Buyer has actual knowledge.

So...long story short, any agreements you have with neighbor or leases you have established and not recorded, ANYTHING, that may affect the marketability or enjoyment of the new owner, you should surrender by the dates specified for Off-Record Matters Deadline.

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