Assignment: Real Property
Tony and Lisa Smith come to your office and tell you that they are planning to sell their house. The buyers are named Andrei and Andrea Walker, who are married to each other.
After interviewing Tony and Lisa, you learn the following information:
The Smiths' home is at 237 Wallabout Drive, Anytown, Freedonia 66666.
The Walkers have agreed to pay $320,000 for the house. They are planning to apply for a mortgage to cover $240,000 and they will pay $80,000 in cash. They will pay their own closing costs.
The Walkers have agreed to put 10% of the purchase price as a down payment at the time of the execution of the contract. They will pay the rest at the closing.
The Smiths initially wanted to close before September 1 so that they could settle their children in their new home prior to the start of the school year. However, the Walkers refuse to close before September 15. The Smiths will agree to close on or before that date. However, Tony tells you that they really need to close by September 15, because they need the purchase money to pay for their new house, for which they are closing on September 17.
The Smiths tell you that the Walkers have already conducted a home inspection (including a Radon test) and the results of the inspection were factored into negotiating the price of the sale.
The Smiths tell you that every January, the homeowners pay their property tax. For this year, $4,500 was paid for property tax by the Smith's on January 12.
Although the Smiths want to move out as quickly as they can, they recognize that there is a slight chance they may be forced to stay in the house beyond the closing date if their new house is not ready, for whatever reason. IF that happens, they are willing to pay the Walkers reasonable rent for the time they stay in the house after closing, but they do not want to be unduly penalized if they cannot move out by the closing date.
The Smiths tell you that their neighbor, Dean Berry, owns an easement that allows anyone in Dean's family to walk across the Smiths' yard whenever they need to, to catch a bus that goes down a street not accessible directly from the Berrys' property.
The Smiths and Walkers have agreed that the refrigerator, washing machine, dryer, range, oven and all lighting fixtures and drapes and curtains will stay in the house after it is sold. The Smiths want to reserve the right to take everything else with them.
The Smiths also ask that, in general, you do what you can to make sure their interests are protected in whatever ways you think appropriate.
Please prepare a real property contract for the Smiths to sell and the Walkers to buy the property. Base its terms are all of the above information.
Please also prepare a deed transferring the property from the Smiths to the Walkers.