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Real Estate Transactions
University of San Diego School of Law
Horning, Duane S.

Real Property Transactions
Professor Horning

Real Estate Purchase Transaction Chronology

1. Negotiation
1.1. Letter of Intent
1.1.1. Binding or non-binding?
1.2. Offers/counteroffers
1.2.1. This is the stage where the buyer and sell hammer out the concrete terms of the proposed
2. Contract Formation
3. Open Escrow
3.1. Deposit of buyer’s earnest money
3.1.1. Earnest money goes in at the beginning while the down-payment goes in at the close of escrow
3.2. Execute escrow instructions
4. Seller
4.1. Transfer Disclosure Statement
4.2. Natural Hazards Disclosure
4.3. Lead-based paint disclosure
4.4. Disclosure of release of hazardous on controlled substance
4.5. Notice of special tax assessment
4.5.1. Mello-Roos An possible obligation for homeowner’s to pay back bond city granted for development infrastructure
4.6. Disclosure of industrial use of military ordinance
4.7. Produce
4.7.1. Rent roll
4.7.2. Leases
4.7.3. Contracts
4.7.4. Warranties
4.7.5. Home owners association minutes and financial statements
4.8. Termite Inspection/fumigation/repairs
4.9. Clear title exceptions
5. Buyer
5.1. Proof of down payment
5.2. Prequalification letter
5.3. Loan application
5.4. Appraisal
5.5. Preliminary report, exceptions and underlying document
5.6. Review and approve seller’s documents and disclosure
5.7. Physical inspection
5.8. Other buyer’s due diligence
5.8.1. Zoning
5.8.2. Leases
5.8.3. Estoppel Certificates
5.8.4. Environmental assessments, Phase I & II
5.8.5. Sex offender website
5.9. Arrange casualty and liability insurance
5.10. Sell/close buyer’s property, waive contingency, or terminate contract
5.11. Notice of other contingency satisfaction
6. Repairs
6.1. Buyer’s request for repairs
6.2. Seller
6.3. Seller’s agreement/disagreement to perform repairs
6.4. Buyer’s acceptance of seller’s position or termination of contr

ale of real property must be stated in a signed writing sufficient to satisfy that statute of frauds

It applies to (Cal. Civ. Code §1624 (a))

Any contract for the sale of real property

It applies to any agreement regarding the sale of real property

Lease of more than one year (a year and a day)
Interest in the sale of real property (includes future interest)

An oral agreement within the statute of frauds is not void; rather it is simply voidable at the election of a party

The statute of frauds is a defense to an action to enforce the contrat and is waived if it not timely raised in litigation