Case Study Of The Real Estate Purchase Contract

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This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller. All negotiations appeared to be going…show more content…
The Mailbox Rule is an area of Utah state law that declares the contract to be effective once the person accepting terms of said contract delivers it to a mailbox. The buyers stated in Addendum No. 2 that if they had not heard back from the seller by 12 a.m. that day, they would consider their counteroffer accepted. The seller was aware of the Mailbox Rule and delivered the accepted contract to a mailbox at 10:15 p.m.. The seller then experienced a phenomenon known as seller’s remorse, and left a voice message for Jon and Marsha at 12:30 a.m., thirty minutes past the proposed
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