HAWAII DROA PURCHASE CONTRACT http://www.GradLaw.com/HawaiiDroaPurchaseContract.html Hawaii DROA Purchase Contract Made Simple Recently, the Hawaii DROA or Deposit Receipt Offer and Acceptance form was changed. The new form released by the Hawaii Association of Realtors (HAR) is now simply called the "Purchase Contract." Here is a brief outline of the Purchase Contract for the purchase and sale of residential property in the State of Hawaii. The Purchase Contract is basically broken down into an introductory section and four subsequent major sections known as Section A, Section B, Section C and Section D. In Section C, you will find the terms of the Offer. In a way, Section C is the main part of the Purchase Contract. This section contains seventy-nine paragraphs that start on page two of the Form and continue through the bulk of the Purchase Contract. Here is a look at the major sections in brief: • Section A is made up of "Agency Disclosures". Each Brokerage Firm has to make Agency Disclosures to the parties whenever that Firm serves as a representative of a Party or as an agent in the transaction. • Section B is used as a receipt of the Buyer's initial deposit. This is typically signed by the Buyer's agent. Additionally, Section B will specify whether Escrow or the Buyer will earn interest on the Buyer's deposit if the deposit is placed into an interest bearing account. • Section C is the "meat" of the Purchase Contract. It is comprised of the Offer to buy the Property and the Offer's terms and conditions, numbered C-1 through C-79. Section C also has additional documents or a list of addendum (if one document) and addenda (if more than one). Those additional documents can either be physically attached to or included by reference in the Purchase Contract in order to become part of the form. • Section D is the section in which the Seller will do one of two things. The Seller can accept the Buyer's Offer or Counter Offer meaning that they reject the original Buyer's Offer. If the Seller does want to make a Counter Offer, they can do so by attaching HAR's standard "Counter Offer" form. The confirmation of the Seller's agreement to pay the Brokerage Firm's agreed upon commission is also found in Section D. Lastly, the HAR standard form "Cooperating Brokerage Firm's Seperate Agreement" is usually attached to the Purchase Contract. It is important to note that this form is not legally part of the Purchase Contract. This agreement is between the Brokerage Firms representing the Seller and the Buyer when they are different. It provides for the compensation of the Brokerage Firm providing services to the Buyer through the sharing of the listing commission. Usually, but not always, the commission is split equally between the two Brokerage Firms.

Hawaii DROA Purchase Contract

Download PDF Report

Upload
grad-law
View
703
Download
21

Embed Size (px)

DESCRIPTION

An overview of the Hawaii DROA Purchase Contract. Learn more from our book...

Citation preview

HAWAII DROA PURCHASE CONTRACT

http://www.GradLaw.com/HawaiiDroaPurchaseContract.html

Hawaii DROA Purchase Contract Made Simple Recently, the Hawaii DROA or Deposit Receipt Offer and Acceptance form was changed. The new form released by the Hawaii Association of Realtors (HAR) is now simply called the "Purchase Contract." Here is a brief outline of the Purchase Contract for the purchase and sale of residential property in the State of Hawaii. The Purchase Contract is basically broken down into an introductory section and four subsequent major sections known as Section A, Section B, Section C and Section D. In Section C, you will find the terms of the Offer. In a way, Section C is the main part of the Purchase Contract. This section contains seventy-nine paragraphs that start on page two of the Form and continue through the bulk of the Purchase Contract.

Here is a look at the major sections in brief:

• Section A is made up of "Agency Disclosures". Each Brokerage Firm has to make Agency Disclosures to the parties whenever that Firm serves as a representative of a Party or as an agent in the transaction.

• Section B is used as a receipt of the Buyer's initial deposit. This is typically signed by the Buyer's agent. Additionally, Section B will specify whether Escrow or the Buyer will earn interest on the Buyer's deposit if the deposit is placed into an interest bearing account.

• Section C is the "meat" of the Purchase Contract. It is comprised of the Offer to buy the Property and the Offer's terms and conditions, numbered C-1 through C-79. Section C also has additional documents or a list of addendum (if one document) and addenda (if more than one). Those additional documents can either be physically attached to or included by reference in the Purchase Contract in order to become part of the form.

• Section D is the section in which the Seller will do one of two things. The Seller can accept the Buyer's Offer or Counter Offer meaning that they reject the original Buyer's Offer. If the Seller does want to make a Counter Offer, they can do so by attaching HAR's standard "Counter Offer" form. The confirmation of the Seller's agreement to pay the Brokerage Firm's agreed upon commission is also found in Section D.

Lastly, the HAR standard form "Cooperating Brokerage Firm's Seperate Agreement" is usually attached to the Purchase Contract. It is important to note that this form is not legally part of the Purchase Contract. This agreement is between the Brokerage Firms representing the Seller and the Buyer when they are different. It provides for the compensation of the Brokerage Firm providing services to the Buyer through the sharing of the listing commission. Usually, but not always, the commission is split equally between the two Brokerage Firms.