When it comes to buying or selling a property, there are a lot of legal documents involved. One of these documents is Schedule B, which is an attachment to the Agreement of Purchase and Sale. In this article, we will discuss Schedule B and its importance in a real estate transaction.
What is Schedule B?
Schedule B is a legal document that is attached to the Agreement of Purchase and Sale. This document outlines the various conditions that must be met before the sale can be completed. Schedule B is essentially a list of promises made by both the buyer and the seller.
Why is Schedule B Important?
Schedule B is important because it ensures that all parties involved in the real estate transaction are aware of the various conditions that must be met before the sale can be completed. These conditions can include things like obtaining financing, completing a home inspection, and obtaining title insurance. Without Schedule B, there may be confusion or misunderstandings about what needs to be done before the sale can be finalized.
What Information is Included in Schedule B?
The information included in Schedule B can vary depending on the transaction. However, there are some common items that are typically included. These include:
1. Purchaser’s Mortgage Commitment
This document confirms that the buyer has obtained financing for the purchase of the property.
2. Home Inspection
This document outlines the results of a home inspection conducted on the property. It may include information about any issues or defects found during the inspection.
3. Title Insurance
This document confirms that the property is free of any liens or encumbrances that could affect the sale.
4. Property Taxes
This document confirms that all property taxes have been paid up to the date of the sale.
5. Utility Bills
This document confirms that all utility bills have been paid up to the date of the sale.
6. Seller’s Disclosure
This document outlines any known issues with the property that the seller has disclosed to the buyer.
Schedule B is an essential document in any real estate transaction. It ensures that all parties involved in the sale are aware of the various conditions that must be met before the sale can be completed. If you are buying or selling a property, it is important to review Schedule B carefully and make sure you understand all of the conditions that must be met.