Contents
The Standard 2 T form is a crucial document used in real estate transactions in North Carolina, specifically designed for buyers and sellers to outline the terms of a property sale. This form serves as an offer to purchase and contract, detailing essential information such as the identities of the buyer and seller, property description, and purchase price. It includes sections that address the inclusion of fixtures and personal property, earnest money deposits, and conditions that must be met for the sale to proceed. Buyers are advised to review any restrictive covenants that may affect the property's use before signing. The form also outlines the responsibilities of both parties regarding inspections, appraisals, and potential repairs, ensuring that all parties are clear on their obligations. Additionally, it covers topics such as closing procedures, risk of loss, and the survival of certain provisions after closing. By clearly laying out these terms, the Standard 2 T form helps protect the interests of both buyers and sellers, promoting a smoother transaction process.
Preview - Standard 2 T Form
OFFER TO PURCHASE AND CONTRACT
(Consult Standard Form 2G for guidance in completing this form.)
Page 1 of 14
This form jointly approved by:
North Carolina Bar Association
NC REALTORS®
Buyer’s initials ______ ______Seller’s initials ______ ______
STANDARD FORM 2-T
Revised 7/2025
© 7/2025
For valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Buyer offers to purchase and Seller
upon acceptance agrees to sell and convey the Property on the terms and conditions of this Offer to Purchase and Contract and any
addendum or modification made in accordance with its terms (together the “Contract”).
1. TERMS AND DEFINITIONS:
(a) “Seller”: ______________________________________________________________________________________________
(b) “Buyer”: ______________________________________________________________________________________________
(c) “Property”: Street Address:
City: Zip: County: , NC
Lot/Unit ______, Block/Section _______, Subdivision/Condominium ___________________________________
Plat Book/Slide ___________ at Page(s) ____________ PIN/PID: ______________________________________
Other description: ____________________________________________________________________________
Some or all of the Property may be described in Deed Book __________________ at Page __________________
The Property will will not include a manufactured (mobile) home(s).
The Property will will not include an off-site and/or separate septic lot, boat slip, garage, parking space, or
storage unit.
Additional Parcels. If additional parcels are the subject of this Contract, any such parcels are described in an
attached exhibit to this Contract, and the term “Property” as used herein shall be deemed to refer to all such parcels.
Government authority over taxes, zoning, school districts, utilities, and mail delivery may differ from address. The
Property shall include all the above real estate and all appurtenances thereto including the improvements located
thereon and the fixtures and personal property in Paragraphs 2 and 3 below. If a manufactured home(s) or a separate
septic lot, boat slip, garage, parking space, or storage unit is included, Buyer and Seller are strongly encouraged to
include further details in the Additional Provisions Addendum (Form 2A11-T) and attach it to this offer.
(d) “Purchase Price”:
$ ____________________________ paid in U.S. Dollars upon the following terms:
$ ____________________________ BY DUE DILIGENCE FEE made payable and delivered to Seller on the Effective
Date by cash personal check official bank check wire transfer
electronic transfer (specify payment service: _____________________________)
$ ____________________________ BY INITIAL EARNEST MONEY DEPOSIT made payable and delivered to Escrow
Agent within five days of the Effective Date by cash personal check official
bank check wire transfer electronic transfer.
$ ____________________________ BY (ADDITIONAL) EARNEST MONEY DEPOSIT made payable and delivered to
Escrow Agent no later than 5 p.m. on __________________, TIME IS OF THE
ESSENCE by cash official bank check wire transfer electronic transfer
$ ____________________________ BYASSUMPTION of the unpaid principal balance and all obligations of Seller on the
existing loan(s). See Loan Assumption Addendum (Form 2A6-T).
$ ____________________________ BY SELLER FINANCING. See Seller Financing Addendum (Form 2A5-T).
$ ____________________________ BY BUILDING DEPOSIT. See New Construction Addendum (Form 2A3-T).
$ ____________________________ BALANCE of the Purchase Price in cash at Settlement (some or all of which may be
paid with the proceeds of a new loan)
(e) “Seller Concessions”: Seller shall pay at Settlement $________________________ or __________% of the Purchase Price toward
any of Buyer’s expenses associated with the purchase of the Property, at the discretion of Buyer and/or lender, including FHA/VA lender
and inspection costs that Buyer is not permitted to pay, if any.
(f) “Due Diligence Period”: (Check only one) The period beginning on the Effective Date and extending through 5:00 p.m. on (insert
date only; not “N/A”) ________________; OR The period extending for (insert a number only; not “N/A”) __________ days after
the Effective Date and ending at 5:00 p.m. on the last day of the period. TIME IS OF THE ESSENCE.
(g) “Settlement Date”: The parties agree that Settlement will take place on ______________________________ unless otherwise
agreed in writing, at a time and place designated by Buyer.
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Buyer’s initials ______ ______ Seller’s initials ______ ______
STANDARD FORM 2-T
Revised 7/2025
© 7/2025
(h) “Earnest Money Deposit”: The Initial Earnest Money Deposit, the Additional Earnest Money Deposit and any other earnest monies
paid or required to be paid in connection with this transaction, collectively the “Earnest Money Deposit,” shall be deposited promptly
and held in escrow by Escrow Agent. The Earnest Money Deposit will be credited to Buyer at Closing or disbursed as required by this
Contract. In the event of a dispute between Seller and Buyer over the disposition of the Earnest Money Deposit held in escrow, Escrow
Agent may remit the Earnest Money Deposit to the clerk of court or otherwise disburse it according to North Carolina Law if the Buyer
and Seller cannot resolve the dispute by consent.
(i) “Escrow Agent”: (insert name) _________________________________________________________. Buyer and Seller consent to
disclosure by the Escrow Agent of any material facts pertaining to the Earnest Money Deposit to the parties to this transaction, their real
estate agent(s) and Buyer’s lender(s). THE PARTIES AGREE THAT A REAL ESTATE BROKERAGE FIRM ACTING AS ESCROW
AGENT MAY PLACE THE EARNEST MONEY DEPOSIT IN AN INTEREST-BEARING TRUST ACCOUNT AND THAT ANY
INTEREST EARNED THEREON SHALL BE DISBURSED TO THE ESCROW AGENT MONTHLY IN CONSIDERATION OF
THE EXPENSES INCURRED BY MAINTAINING SUCH ACCOUNT AND RECORDS ASSOCIATED THEREWITH.
(j) “Effective Date”: The date that: (1) the last one of Buyer and Seller has signed or initialed this offer or the final counteroffer, if any,
and (2) such signing or initialing is communicated to the party making the offer or counteroffer, as the case may be. The parties
acknowledge and agree that the initials lines at the bottom of each page of this Contract are merely evidence of their having reviewed
the terms of each page, and that the complete execution of such initial lines shall not be a condition of the effectiveness of this Agreement.
The parties further acknowledge that the effectiveness of this Contract is not contingent on Buyer’s payment of any Earnest Money
Deposit or Due Diligence Fee. See paragraph 6(a) for Seller’s remedy for any untimely delivered or dishonored funds.
(k) “Due Diligence”: Buyer’s opportunity to investigate the Property and the transaction contemplated by this Contract, including but
not necessarily limited to the matters described in Paragraph 4 below, to decide whether Buyer, in Buyer’s sole discretion, will proceed
with or terminate the transaction.
(l) “Due Diligence Fee”: A negotiated amount, if any, paid by Buyer to Seller with this Contract for Buyer’s right to terminate the
Contract for any reason or no reason during the Due Diligence Period. It shall be the property of Seller upon the Effective Date and shall
be a credit to Buyer at Closing. The Due Diligence Fee shall be non-refundable except in the event of a material breach of this Contract
by Seller, or if this Contract is terminated under Paragraph 23(b) or as otherwise provided in any addendum hereto. Buyer and Seller
each expressly waive any right that they may have to deny the right to conduct Due Diligence or to assert any defense as to the
enforceability of this Contract based on the absence or alleged insufficiency of any Due Diligence Fee, it being the intent of the parties
to create a legally binding contract for the purchase and sale of the Property without regard to the existence or amount of any Due
Diligence Fee. Seller, or Seller’s agent, may direct Buyer in writing to make the Due Diligence Fee payable to a party other than “Seller”
as that term is defined herein, and Seller agrees to be bound by such written direction. See paragraph 23 for a party’s right to attorneys’
fees incurred in collecting the Due Diligence Fee.
(m) “Settlement”: The proper execution and delivery to the closing attorney of all documents necessary to complete the transaction
contemplated by this Contract, including the deed, settlement statement, deed of trust and other loan or conveyance documents, and the
closing attorney’s receipt of all funds necessary to complete such transaction.
(n) “Closing”: The completion of the legal process which results in the transfer of title to the Property from Seller to Buyer, which
includes the following steps: (1) the Settlement (defined above); (2) the completion of a satisfactory title update to the Property following
the Settlement; (3) the closing attorney’s receipt of authorization to disburse all necessary funds; and (4) recordation in the appropriate
county registry of the deed(s) and deed(s) of trust, if any, which shall take place as soon as reasonably possible for the closing attorney
after Settlement. Upon Closing, the proceeds of sale shall be disbursed by the closing attorney in accordance with the settlement
statement and the provisions of Chapter 45A of the North Carolina General Statutes. If the title update should reveal unexpected liens,
encumbrances or other title defects, or if the closing attorney is not authorized to disburse all necessary funds, then the Closing shall be
suspended and the Settlement deemed delayed under paragraph 12 (Delay in Settlement/Closing).
Attorney Closings in North Carolina: The North Carolina State Bar has determined that the performance of most acts and services
required for a closing constitutes the practice of law and must be conducted only by an attorney licensed to practice law in North
Carolina. State law prohibits unlicensed individuals or firms from rendering legal services or advice. Although non-attorney settlement
agents may perform limited services in connection with a closing, they may not perform all the acts and services required to complete a
closing. Accordingly, it is the position of the North Carolina Bar Association and NC REALTORS® that all buyers should hire an
attorney licensed in North Carolina to perform a closing.
(o) “Special Assessments”: A charge against the Property by a governmental authority in addition to ad valorem taxes and recurring
governmental service fees levied with such taxes, or by an owners’ association in addition to any regular assessment (dues), either of
which may be a lien against the Property. Buyer’s and Seller’s respective responsibilities for the payment of Special Assessments are
addressed in paragraphs 6(b) and 8(k).
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Buyer’s initials ______ ______ Seller’s initials ______ ______
STANDARD FORM 2-T
Revised 7/2025
© 7/2025
2. FIXTURES AND EXCLUSIONS: The parties should not assume that an item will or will not be included in the sale based on a
statement or advertisement outside this Contract. See paragraph 19 for details. Buyer and Seller should ensure this paragraph accurately
reflects the entire agreement of Buyer and Seller.
(a) Fixtures Are Included in Purchase Price: ALL EXISTING FIXTURES ARE INCLUDED IN THE SALE AS PART OF THE
PURCHASE PRICE, FREE OF LIENS, UNLESS EXCLUDED IN SUBPARAGRAPHS (d) OR (e).
(b) Specified Items: Buyer and Seller agree that the following items, if present on the Property on the date of the offer, shall be included
in the sale as part of the Purchase Price free of liens, unless excluded in subparagraphs (d) or (e) below. ALL ITEMS LISTED BELOW
INCLUDE BOTH TRADITIONAL AND “SMART” VERSIONS AND ANY EXCLUSIVELY DEDICATED, RELATED
EQUIPMENT AND/OR REMOTE CONTROL DEVICES.
Alarm and security systems (attached) for security, fire,
smoke, carbon monoxide or other toxins with all related
access codes, sensors, cameras, dedicated monitors, hard
drives, video recorders, power supplies and cables;
doorbells/chimes
All stoves/ranges/ovens; built-in appliances; attached
microwave oven; vent hood
Antennas; satellite dishes and receivers
Basketball goals and play equipment (permanently attached
or in-ground)
Ceiling and wall-attached fans; light fixtures (including
existing bulbs)
Exercise equipment/devices that are attached
Fireplace insert; gas logs or starters; attached fireplace
screens; wood or coal stoves
Floor coverings (attached)
Garage door openers
Generators that are permanently wired
Thermostats
Storage shed; utility building
Solar electric and solar water heating systems
Electric vehicle chargers
Invisible fencing with power supply
Landscape and outdoor trees and plants (except in moveable
containers); raised garden; landscape and foundation
lighting; outdoor sound systems; permanent irrigation
systems; rain barrels; landscape water features; address
markers
Mailboxes; mounted package and newspaper receptacles
Mirrors attached to walls, ceilings, cabinets or doors; all
bathroom wall mirrors
Swimming pools; spas; hot tubs (excluding inflatable
pools, spas, and hot tubs)
Sump-pumps, radon fans and crawlspace ventilators; de-
humidifiers that are permanently wired
Surface-mounting brackets for television and speakers;
recess-mounted speakers; mounted intercom system
Window/Door blinds and shades; curtain/drapery rods and
brackets; door and window screens and combination doors;
awnings and storm windows
Water supply equipment, including filters, conditioning and
softener systems; re-circulating pumps; well pumps and
tanks
(c) Unpairing/deleting data from devices: Prior to Closing, Seller shall “unpair” any devices that will convey from any personal
property devices (hubs, intelligent virtual assistants, mobile devices, vehicles, etc.) with which they are paired, delete personal data from
any devices that will convey, and restore all devices to factory default settings unless otherwise agreed. Seller’s obligations under this
paragraph 2(c) shall survive Closing.
(d) Items Leased or Not Owned: Any item which is leased or not owned by Seller, such as antennas, satellite dishes and receivers,
appliances, and alarm and security systems must be identified here and shall not convey:
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
In addition, any leased fuel tank identified in paragraph 7(d) shall not convey. Any items leased or not owned by Seller that Seller wishes
to convey under certain conditions – for example, if Seller wishes for Buyer to assume a fixture loan before conveying an item – should
be addressed in an attorney-drafted addendum after consulting with the lender, if any.
(e) Other Items That Do Not Convey: The following items shall not convey (identify those items to be excluded under subparagraphs
(a) and (b)): _________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
Seller must repair any damage caused by removal of any items excluded above in a good and workmanlike manner. Seller will notify
Buyer upon completion of such repair(s) and provide Buyer with documentation thereof, if any. Buyer is advised to consider attaching
the Additional Provisions Addendum (Form 2A11-T) if Buyer has a specific request as to how the repairs should be completed.
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Buyer’s initials ______ ______ Seller’s initials ______ ______
STANDARD FORM 2-T
Revised 7/2025
© 7/2025
3. PERSONAL PROPERTY: The following personal property present on the Property on the date of the offer shall be transferred to
Buyer at closing at no value. Any personal property that is part of the sale should be identified in this paragraph. Buyer is advised to
consult with Buyer’s lender to assure that the Personal Property items listed here can be included:
4. BUYER’S DUE DILIGENCE PROCESS: BUYER IS STRONGLY ENCOURAGED TO CONDUCT DUE DILIGENCE
DURING THE DUE DILIGENCE PERIOD. If Buyer is not satisfied with the results or progress of Buyer’s Due Diligence, Buyer
should terminate this Contract prior to the expiration of the Due Diligence Period, unless Buyer can obtain a written extension from
Seller. Seller is not obligated to grant an extension. If Buyer terminates outside the Due Diligence Period, Buyer may lose their Earnest
Money Deposit. Buyer may continue to investigate the Property following the expiration of the Due Diligence Period as allowed under
paragraphs 4 and 8(c) herein.
(a) Loan: Buyer, at Buyer’s expense, shall be entitled to pursue qualification for and approval of the Loan if any. There is no loan or
appraisal contingency in this Contract. Therefore, Buyer is advised to consult with Buyer’s lender prior to signing this offer to assure
that the Due Diligence Period allows sufficient time for the loan process and for Buyer’s lender to provide Buyer sufficient information
to decide whether to proceed with or terminate the transaction.
(b) Property Investigation: Buyer or Buyer’s agents or representatives, at Buyer’s expense, shall be entitled to conduct all desired tests,
surveys, appraisals, investigations, examinations and inspections of the Property as Buyer deems appropriate, including but NOT limited
to the following:
(i) Inspections: Inspections to determine the condition of any improvements on the Property, the presence of unusual drainage
conditions or evidence of excessive moisture adversely affecting any improvements on the Property, the presence of asbestos
or existing environmental contamination, evidence of wood-destroying insects or damage therefrom, and the presence and level
of radon gas on the Property.
(ii) Review of Documents: Review of the Declaration of Restrictive Covenants, Bylaws, Articles of Incorporation, Rules and
Regulations, and other governing documents of any applicable owners’ association and/or subdivision. If the Property is subject
to regulation by an owners’ association, it is recommended that Buyer review the completed Residential Property and Owners'
Association Disclosure Statement provided by Seller prior to signing this offer. It is also recommended that the Buyer determine
if the owners’ association or its management company charges fees for providing information required by Buyer’s lender or
confirming restrictive covenant compliance.
(iii) Insurance: Investigation of the availability and cost of insurance for the Property.
(iv) Appraisals: An appraisal of the Property.
(v) Survey: A survey to determine whether the property is suitable for Buyer’s intended use and the location of easements,
setbacks, property boundaries and other issues which may or may not constitute title defects.
(vi) Zoning, Governmental Regulation, and Governmental Compliance: Investigation of current or proposed zoning or other
governmental regulation that may affect Buyer’s intended use of the Property, adjacent land uses, planned or proposed road
construction, and school attendance zones; and investigation of whether the Property is in violation of any law, ordinance,
permit, or government regulation as outlined in paragraph 8(h).
(vii) Flood/Wetland/Water Hazard: Investigation of potential flood hazards, wetlands, or other water or riparian issues on the
Property; and/or any requirement to purchase flood insurance in order to obtain a loan.
(viii) Utilities and Access: Availability, quality, and obligations for maintenance of utilities including water, sewer, electric, gas,
communication services, stormwater management, and means of access to the Property and amenities.
(ix) Streets/Roads: Investigation of the status of the street/road upon which the Property fronts as well as any other street/road
used to access the Property, including: (1) whether any street(s)/road(s) are public or private, (2) whether any street(s)/road(s)
designated as public are accepted for maintenance by the State of NC or any municipality, or (3) if private or not accepted for
public maintenance, the consequences and responsibility for maintenance and the existence, terms and funding of any
maintenance agreements.
(x) Special Assessments: Investigation of the existence of Special Assessments that may be under consideration by a governmental
authority or an owners’ association.
(c) Sale/Lease of Existing Property: As noted in paragraph 5(b), unless otherwise provided in an addendum, this Contract is not
conditioned upon the sale/lease or closing of other property owned by Buyer. Therefore, if Buyer must sell or lease other real property
in order to qualify for a new loan or to otherwise complete the purchase of the Property, Buyer should seek to close on Buyer’s other
property prior to the end of the Due Diligence Period or be reasonably satisfied that closing on Buyer's other property will take place
prior to the Settlement Date of this Contract.
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Buyer’s initials ______ ______ Seller’s initials ______ ______
STANDARD FORM 2-T
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(d) Repair/Improvement Negotiations/Agreement: Buyer acknowledges and understands the following: (i) Unless the parties agree
otherwise, THE PROPERTY IS BEING SOLD IN ITS CURRENT CONDITION; (ii) Seller may, but is not required to, engage in
negotiations for repairs/improvements to the Property. Buyer is strongly advised to make any repair/improvement requests in sufficient
time to allow negotiations to be concluded prior to the expiration of the Due Diligence Period. Any agreement that the parties may reach
with respect to repairs/improvements is an addition to this Contract that must be in writing and signed by the parties in accordance with
Paragraph 19.
(e) Buyer’s Obligation to Repair Damage: Buyer shall, at Buyer’s expense, promptly repair any damage to the Property resulting from
any activities of Buyer and Buyer’s agents and contractors, but Buyer shall not be responsible for any damage caused by accepted
practices either approved by the N.C. Home Inspector Licensure Board or applicable to any other N.C. licensed professional performing
reasonable appraisals, tests, surveys, examinations, and inspections of the Property. This repair obligation shall survive any termination
of this Contract.
(f) Indemnity: Buyer will indemnify and hold Seller harmless from all loss, damage, claims, suits or costs, which shall arise out of any
contract, agreement, or injury to any person or property as a result of any activities of Buyer and Buyer’s agents and contractors relating
to the Property except for any loss, damage, claim, suit or cost arising out of pre-existing conditions of the Property and/or out of Seller’s
negligence or willful acts or omissions. This indemnity shall survive this Contract and any termination hereof.
(g) Buyer’s Right to Terminate: Provided that Buyer has delivered any agreed-upon Due Diligence Fee, Buyer shall have the right to
terminate this Contract for any reason or no reason; by delivering to Seller written notice of termination (the “Termination Notice”)
during the Due Diligence Period (or any agreed-upon written extension of the Due Diligence Period), TIME IS OF THE ESSENCE.
If Buyer timely delivers the Termination Notice, this Contract shall be terminated and the Earnest Money Deposit shall be refunded to
Buyer.
(h) CLOSING SHALL CONSTITUTE ACCEPTANCE OF THE PROPERTY IN ITS THEN EXISTING CONDITION
UNLESS PROVISION IS OTHERWISE MADE IN WRITING.
5. BUYER REPRESENTATIONS:
(a) Funds to complete purchase: Buyer’s obligations under this Contract are not conditioned on obtaining any loan(s) or other funds
from sources other than Buyer’s own assets. Some loans and programs providing funds to Buyer may impose repair obligations or
additional conditions or costs upon Seller or Buyer, and more information may be needed. Material changes to funding the purchase of
the Property that affect the terms of the contract are material facts that must be disclosed.
Cash. Buyer intends to pay cash in order to purchase the Property and does not intend to obtain a loan or funds from sources other
than Buyer’s own assets. If Buyer does not intend to obtain a new loan(s) and/or funds from sources other than Buyer’s own assets,
Seller is advised, prior to signing this offer, to obtain documentation from Buyer which demonstrates that Buyer will be able to close
on the Property without the necessity of obtaining a loan or funds from sources other than Buyer’s own assets. Verification of cash
available for Settlement is is not attached.
OR:
Loan(s)/Other Funds. Buyer intends to obtain a loan(s) and/or other funds to purchase the Property from the following sources.
Material changes to the following are material facts that must be disclosed. The parties should note that some loans may have repair
obligations or other costs on Seller or Buyer.
Check all applicable sources:
First Mortgage Loan: Buyer intends to obtain a first mortgage loan of the following: FHA VA (attach FHA/VA
Financing Addendum) Conventional USDA Other type: ________________________________________________
____________________________________________________________________________________________________
in the principal amount of _______________________ plus any financed VA Funding Fee or FHA MIP.
Second Mortgage Loan: Buyer intends to obtain a second mortgage loan as follows:
Other funds: Buyer intends to obtain funds from the following other source(s) in order to purchase the Property: _______
____________________________________________________________________________________________________
____________________________________________________________________________________________________
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(b) Other Property: This subparagraph is only a disclosure by Buyer and does not make this contract contingent on the sale of Buyer’s
other property. If Buyer and Seller wish to make this Contract contingent on the sale of Buyer’s other property, then the parties should
attach an attorney-drafted, custom addendum.
Buyer DOES DOES NOT have to sell or lease other real property in order to qualify for a new loan or to complete the purchase.
(Complete the following only if Buyer DOES have to sell or lease other real property:)
Other Property Address: __________________________________________________________________________________
(Check if applicable) Buyer's other property IS under contract as of the date of this offer, and a copy of the contract has either been
previously provided to Seller or accompanies this offer. (Buyer may mark out any confidential information, such as the purchase price
and the buyer’s identity, prior to providing a copy of the contract to Seller.) Failure to provide a copy of the contract shall not prevent
this offer from becoming a binding contract; however, SELLER IS STRONGLY ENCOURAGED TO OBTAIN AND REVIEW THE
CONTRACT ON BUYER’S PROPERTY PRIOR TO ACCEPTING THIS OFFER.
(Check if applicable) Buyer’s other property IS NOT under contract as of the date of this offer. Buyer’s property (check only
ONE of the following options):
is listed with and actively marketed by a licensed real estate broker.
will be listed with and actively marketed by a licensed real estate broker.
Buyer is attempting to sell/lease the Buyer’s Property without the assistance of a licensed real estate broker.
(c) Performance of Buyer’s Financial Obligations: To the best of Buyer’s knowledge, there are no other circumstances or conditions
existing as of the date of this offer that would prohibit Buyer from performing Buyer’s financial obligations in accordance with this
Contract, except as may be specifically set forth herein.
(d) Residential Property and Owners’ Association Disclosure Statement (check only one):
Buyer has received a signed copy of the N.C. Residential Property and Owners’ Association Disclosure Statement prior to making
this offer and acknowledges compliance with N.C.G.S. 47E-5 (Residential Property Disclosure Act).
Buyer has NOT received a signed copy of the N.C. Residential Property and Owners’ Association Disclosure Statement prior to
making this offer and shall have the right to terminate or withdraw this Contract without penalty (including a refund of any Due
Diligence Fee) prior to WHICHEVER OF THE FOLLOWING EVENTS OCCURS FIRST: (1) the end of the third calendar day
following receipt of the Disclosure Statement; (2) the end of the third calendar day following the Effective Date; or (3) Settlement
or occupancy by Buyer in the case of a sale or exchange.
Exempt from N.C. Residential Property and Owners’ Association Disclosure Statement because (SEE
GUIDELINES):_________________________________________________________________________________________
______________________________________________________________________________________________________.
(e) Mineral and Oil and Gas Rights Mandatory Disclosure Statement (check only one):
Buyer has received a signed copy of the N.C. Mineral and Oil and Gas Rights Mandatory Disclosure Statement prior to making
this offer and acknowledges compliance with N.C.G.S. 47E-5 (Residential Property Disclosure Act).
Buyer has NOT received a signed copy of the N.C. Mineral and Oil and Gas Rights Mandatory Disclosure Statement prior to
making this offer and shall have the right to terminate or withdraw this Contract without penalty (including a refund of any Due
Diligence Fee) prior to WHICHEVER OF THE FOLLOWING EVENTS OCCURS FIRST: (1) the end of the third calendar day
following receipt of the Disclosure Statement; (2) the end of the third calendar day following the Effective Date; or (3) Settlement
or occupancy by Buyer in the case of a sale or exchange.
Exempt from N.C. Mineral and Oil and Gas Rights Mandatory Disclosure Statement because (SEE GUIDELINES): ________
________________________________________________________________________________________________________.
Buyer’s receipt of a Mineral and Oil and Gas Rights Mandatory Disclosure Statement does not modify or limit the obligations of
Seller under Paragraph 8(g) of this Contract and shall not constitute the assumption or approval by Buyer of any severance of mineral
and/or oil and gas rights, except as may be assumed or specifically approved by Buyer in writing. The parties are advised to consult
with a NC attorney prior to signing this Contract if severance of mineral and/or oil and gas rights has occurred.
6. BUYER OBLIGATIONS:
(a) Timely Payment of Earnest Money Deposit and Due Diligence Fee; Dishonored Funds:
(i) Buyer must timely pay the Earnest Money Deposit and Due Diligence Fee. Should Buyer fail to deliver either the Due Diligence
Fee or any Initial Earnest Money Deposit by their due dates, or should any check or other funds paid by Buyer be dishonored,
for any reason, by the institution upon which the payment is drawn, Buyer shall have one banking day after written notice to
deliver cash, official bank check, wire transfer, or electronic transfer to the payee. Form 355 may be used to demand funds
from Buyer.
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(ii) In the event Buyer does not timely deliver the required funds, Seller shall have the right to terminate this Contract upon written
notice to Buyer, and Seller shall be entitled to recover the Due Diligence Fee together with all Earnest Money Deposit paid or
to be paid in the future. In addition, Seller may seek any remedies allowed for dishonored funds. See paragraph 23 for a party’s
right to attorneys’ fees incurred in collecting the Earnest Money Deposit or Due Diligence Fee.
(iii) If the parties agree that Buyer will pay any fee or deposit described above by electronic or wire transfer, Seller agrees to
cooperate in effecting such transfer, including the establishment of any necessary account and providing any necessary
information to Buyer. Buyer shall be responsible for additional costs, if any, associated with such transfer.
(b) Responsibility for Special Assessments: Buyer shall take title subject to all Special Assessments that may be approved following
Settlement.
(c) Responsibility for Certain Costs: Buyer shall be responsible for all costs with respect to: (i) any loan obtained by Buyer; (ii) charges
by an owners’ association or a management company/vendor as agent of the association under paragraph 9(b) of this Contract; (iii)
appraisal; (iv) title search; (v) title insurance; (vi) any fees charged by the closing attorney for the preparation of the Closing Disclosure,
Seller Disclosure and any other settlement statement; (vii) recording the deed; and (viii) preparation and recording of all instruments
required to secure the balance of the Purchase Price unpaid at Settlement.
(d) Authorization to Disclose Information: Buyer authorizes the Buyer’s lender(s), the parties’ real estate agent(s) and closing attorney:
(i) to provide this Contract to any appraiser employed by Buyer or by Buyer’s lender(s); and (ii) to release and disclose any buyer’s
closing disclosure, settlement statement and/or disbursement summary, or any information therein, to the parties to this transaction, their
real estate agent(s) and Buyer’s lender(s).
7. SELLER REPRESENTATIONS:
(a) Ownership: Seller has owned the Property for at least one year; has owned the Property for less than one year; or does not
yet own the Property.
(b) Lead-Based Paint (check if applicable): The Property is residential and was built prior to 1978 (Attach Lead-Based Paint or
Lead-Based Paint Hazards Disclosure Addendum, Form 2A9-T). IF A LEAD-BASED PAINT DISCLOSURE IS REQUIRED BUT
NOT GIVEN TO BUYER PRIOR TO SELLER’S ACCEPTANCE OF THIS OFFER, BUYER MAY NOT BE OBLIGATED TO
PURCHASE THE PROPERTY UNDER THIS CONTRACT UNDER FEDERAL LAW.
(c) Owners’ Association(s) and Dues: Seller authorizes and directs any owners’ association, any management company of the owners’
association, any insurance company and any attorney who has previously represented the Seller to release to Buyer, Buyer’s agents,
representative, closing attorney and/or lender true and accurate copies of the following items affecting the Property, including any
amendments: Seller’s statement of account; master insurance policy showing the coverage provided and the deductible amount;
Declaration and Restrictive Covenants; Rules and Regulations; Articles of Incorporation; Bylaws of the owners’ association; current
financial statement and budget of the owners’ association; parking restrictions and information; and architectural guidelines.
Name of Association 1: _________________________________________________________________________whose regular
assessments (“dues”) are $_______________ per______________. The name, address and telephone number of the president of the
owners’ association or the association manager is: ______________________________________________________.
Owners’ association website address, if any: ________________________________________________________________
Name of Association 2: _________________________________________________________________________whose regular
assessments (“dues”) are $_______________ per______________. The name, address and telephone number of the president of the
owners’ association or the association manager is: ______________________________________________________.
Owners’ association website address, if any: ________________________________________________________________
(d) Fuel Tank(s)/Fuel: To the best of Seller’s knowledge, there is is not a fuel tank(s) located on the Property. If “yes” complete
the following.
(i) Description:
Tank 1: currently in use currently NOT in use
Ownership: owned leased. If leased, name and contact information of tank lessor: _________________
____________________________________________________________________________________________
Location: above ground below ground
Type of fuel: oil propane gasoline and/or diesel other: ______________________________________
Name and contact information of fuel vendor: _____________________________________________________
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Tank 2: currently in use currently NOT in use
Ownership: owned leased. If leased, name and contact information of tank lessor: _________________
____________________________________________________________________________________________
Location: above ground below ground
Type of fuel: oil propane gasoline and/or diesel other: ______________________________________
Name and contact information of fuel vendor: _____________________________________________________
(ii) Tank(s) included in sale: Buyer and Seller agree that any tank described above that is owned by Seller shall be included in
the sale as part of the Purchase Price free of liens, unless excluded in paragraph 2(d) or 2(e) above.
(iii) Fuel: Seller may use fuel in the tank(s) described above through Settlement, but may not otherwise remove the fuel or resell it.
Any fuel remaining in the tank(s) as of Settlement shall be included in the sale as part of the Purchase Price, free of liens.
Seller’s use of fuel in any fuel tank is subject to Seller’s obligation under Paragraph 8(c) to provide working, existing utilities
through the earlier of Closing or possession by Buyer.
(iv) Inspections; Supplier Consent: Buyer shall be entitled to conduct inspections to confirm the existence, type and ownership
of any fuel tank located on the Property. Buyer is advised to consult with the owner of any leased fuel tank regarding the terms
under which Buyer may lease the tank and obtain fuel. State law provides that it is unlawful for any person, other than the
supplier or the owner of a fuel supply tank, to disconnect, interrupt or fill the supply tank with liquefied petroleum gas (LP gas
or propane) without the consent of the supplier.
(e) Leases. The Property is is not subject to any lease(s). If the Property is subject to a lease, Buyer and Seller should include either
the Rental/Income/Investment Property provision in the Additional Provisions Addendum (Standard Form 2A11-T) or the Vacation
Rental Addendum (Form 2A13-T) with this offer.
8. SELLER OBLIGATIONS:
(a) Evidence of Title and Payoff Statement(s):
(i) Seller agrees to use best efforts to provide to the closing attorney as soon as reasonably possible after the Effective Date, copies
of all title information in possession of or available to Seller, including but not limited to: title insurance policies, attorney’s
opinions on title, surveys, covenants, deeds, notes and deeds of trust, leases, and easements relating to the Property.
(ii) Seller shall provide to the closing attorney all information needed to obtain a written payoff statement from any lender(s)
regarding any security interest in the Property as soon as reasonably possible after the Effective Date, and Seller designates the
closing attorney as Seller’s agent with express authority to request and obtain on Seller’s behalf payoff statements and/or short-
pay statements from any such lender(s).
(iii) As soon as reasonably possible after the Effective Date, Seller shall provide to the closing attorney all information needed to
obtain a written statement of Seller’s account from any owners’ association or HOA management company associated with the
Property. Seller designates the closing attorney as Seller’s agent with express authority to request and obtain on Seller’s behalf
a written statement of Seller’s account as to the Property. Upon request from the closing attorney, Seller shall immediately pay
any fees charged by the owners’ association or HOA management company for such written statement.
(b) Authorization to Disclose Information: Seller authorizes: (i) any attorney presently or previously representing Seller to release and
disclose any title insurance policy in such attorney's file to Buyer and both Buyer's and Seller's agents and attorneys; (ii) the Property’s
title insurer or its agent to release and disclose all materials in the Property's title insurer's (or title insurer's agent's) file to Buyer and
both Buyer's and Seller's agents and attorneys and (iii) the closing attorney to release and disclose any seller’s closing disclosure,
settlement statement and/or disbursement summary, or any information therein, to the parties to this transaction, their real estate agent(s)
and Buyer’s lender(s).
(c) Access to Property: Seller shall provide reasonable access to the Property through the earlier of Closing or possession by Buyer,
including, but not limited to, allowing Buyer and/or Buyer’s agents or representatives, an opportunity to: (i) conduct any Due Diligence,
investigations, or inspections; (ii) verify the satisfactory completion of negotiated repairs/improvements; and (iii) conduct a final walk-
through inspection of the Property. Seller’s obligation includes providing existing utilities operating at Seller’s cost, including any
connections and de-winterizing.
(d) Removal of Seller’s Property: Seller shall remove, by the date possession is made available to Buyer, all personal property which
is not a part of the purchase and all garbage and debris from the Property.
(e) Settlement Deliverables: If requested by the closing attorney, Seller shall furnish, prior to or at Settlement, the following items in a
form satisfactory to Buyer and Buyer’s title insurer, if any:
(i) Affidavit and indemnification agreements or other documents that: (1) cover any potential materialman’s lien under N.C.G.S.
§ 44A-8 for labor, services, materials, or rental equipment used on the Property within 120 days of Settlement; (2) address the
closing attorney’s difficulty in accessing electronic records with the register of deeds and the clerk of court; and (3) allow Buyer
to obtain a title insurance policy, subject to the exceptions in paragraph 8(g) below.
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(ii) If Seller is not a foreign person as defined by the Foreign Investment in Real Property Tax Act, Seller will also provide to the
closing attorney a non-foreign status certification (pursuant to the Foreign Investment in Real Property Tax Act). If Seller does
not provide this certification, Seller acknowledges that there may be withholding as provided by the Internal Revenue Code.
(f) Designation of Lien Agent, Payment and Satisfaction of Liens: If required by N.C.G.S. §44A-11.1, Seller shall have designated
a Lien Agent, and Seller shall deliver to Buyer as soon as reasonably possible a copy of the appointment of Lien Agent. All deeds of
trust, deferred ad valorem taxes, liens and other charges against the Property, not assumed by Buyer, must be paid and satisfied by Seller
prior to or at Settlement such that cancellation may be promptly obtained following Closing. Seller shall remain obligated to obtain any
such cancellations following Closing.
(g) Good Title, Legal Access: Seller shall execute and deliver a GENERAL WARRANTY DEED for the Property in recordable form
no later than Settlement, which shall convey fee simple marketable and insurable title, without exception for mechanics’ liens, lis
pendens, monetary liens and judgments, and free of other encumbrances or defects that would materially affect the value of the Property,
including those which would be revealed by a current and accurate survey of the Property, except: (i) ad valorem taxes for the current
year; (ii) utility easements and unviolated covenants, conditions or restrictions; and (iii) such other liens, encumbrances or defects as
may be specifically approved by Buyer in writing. The Property must have legal access to a public right of way. Buyer’s failure to
conduct a survey or examine title of the Property, prior to the expiration of the Due Diligence Period does not relieve the Seller of their
obligation to deliver good title under this paragraph.
(h) Governmental Compliance: It is a condition of this Contract that the Property be conveyed free of any material violation of law,
ordinance, permit, or government regulation (including, but not limited to, those relating to building, stormwater, impervious surface,
environmental protection, and zoning), unless Seller has specifically disclosed such violation(s) prior to the Effective Date. If Buyer
establishes that a violation exists after the Effective Date and prior to Closing, then Buyer must promptly notify Seller and Seller may
cure the violation(s). Unless otherwise agreed, if Seller does not cure the violation(s) prior to Closing, then Buyer may choose to accept
the violation(s) and proceed to Settlement/Closing or terminate this Contract and receive a refund of the Earnest Money Deposit and the
Due Diligence Fee.
(i) Deed, Taxes and Fees: Seller shall pay for preparation of a deed and all other documents necessary to perform Seller’s obligations
under this Contract, and for state and county excise taxes, and any deferred, discounted or rollback taxes, and local conveyance fees
required by law. The deed is to be made to: (i) Buyer; (ii) a corporation, limited liability company, or other business entity of which
Buyer is the sole owner or shareholder; (iii) a trust for which Buyer is the beneficiary; (iv) any relative of Buyer; and/or (v) Other:
(Insert Name(s) Only) ______________________________________________________________________________________.
(j) Owners’ Association Fees/Charges: Seller shall pay any charges by an owners’ association or a management company/vendor as
agent of the association under paragraph 9(a) of this Contract.
(k) Payment of Special Assessments: Seller shall pay, in full at Settlement, all Special Assessments that are approved prior to
Settlement, whether payable in a lump sum or future installments, provided that the amount thereof can be reasonably determined or
estimated. The payment of such estimated amount shall be the final payment between the Parties.
(l) Late Listing Penalties: All property tax late listing penalties, if any, shall be paid by Seller.
(m) Negotiated Repairs/Improvements: Negotiated repairs/improvements shall be made in a good and workmanlike manner and Buyer
shall have the right to verify same prior to Settlement.
(n) Home Warranty: (Select one of the following):
No home warranty is to be provided by Seller.
Buyer may obtain a one-year home warranty at a cost not to exceed $____________ which includes sales tax and Seller
agrees to pay for it at Settlement.
Seller has obtained and will provide a one-year home warranty from _________________________________________
at a cost of $ _________ which includes sales tax and will pay for it at Settlement.
9. CHARGES BY OWNERS’ ASSOCIATION: Responsibility for payment of charges by an owners’ association or a management
company/vendor as agent of the association shall be allocated between Buyer and Seller as follows:
(a) Seller shall pay:
(i) fee incurred by Seller in completing the Residential Property and Owners’ Association Disclosure Statement, and resale or
other certificates related to a proposed sale of the Property;
(ii) fees required for confirming Seller’s account payment information on owners’ association dues or assessments for payment or
proration, including any expedite fee permitted under N.C. Gen. Stat. § 47F-3-102 that is charged in connection with providing
such information;
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(iii) any fees charged for transferring or updating ownership records of the association; and
(iv) any fees other than those fees specifically required to be paid by Buyer under paragraph 9(b) below.
(b) Buyer shall pay:
(i) charges for providing information required by Buyer’s lender;
(ii) charges for working capital contributions, membership fees, or charges imposed for Buyer’s use of the common elements
and/or services provided to Buyer in connection with Buyer taking possession of the Property, such as “move-in fees”; and
(iii) charges for determining restrictive covenant compliance.
10. PRORATIONS AND ADJUSTMENTS: Unless otherwise agreed, the following items shall be prorated, with Seller responsible
for the prorated amounts of any taxes and dues through the date of Settlement, and Seller entitled to the amount of prorated rents through
the date of Settlement, and either adjusted between the parties or paid at Settlement:
(a) Taxes on Real Property: Ad valorem taxes and recurring governmental service fees levied with such taxes on real property shall
be prorated on a calendar year basis;
(b) Taxes on Personal Property: Ad valorem taxes on personal property for the entire year shall be paid by Seller unless the personal
property is conveyed to Buyer, in which case, the personal property taxes shall be prorated on a calendar year basis;
(c) Rents: Rents, if any, for the Property;
(d) Dues: Owners’ association regular assessments (dues) and other like charges.
11. CONDITION OF PROPERTY/RISK OF LOSS:
(a) Condition of Property at Settlement: If the Property is not in substantially the same or better condition at Closing as on the date
of this offer, reasonable wear and tear excepted, Buyer may terminate this Contract by written notice delivered to Seller and the Due
Diligence Fee and Earnest Money Deposit shall be refunded to Buyer. If the Property is not in such condition and Buyer does NOT elect
to terminate this Contract, Buyer shall be entitled to receive, in addition to the Property, the proceeds of any insurance claim filed by
Seller on account of any damage or destruction to the Property.
(b) Risk of Loss: The risk of loss or damage by fire or other casualty prior to Closing shall be upon Seller. Seller is advised not to
cancel existing insurance on the Property until after confirming recordation of the deed.
12. DELAY IN SETTLEMENT/CLOSING: This paragraph shall apply if one party is ready, willing and able to complete Settlement
on the Settlement Date (“Non-Delaying Party”) but it is not possible for the other party to complete Settlement by the Settlement Date
(“Delaying Party”). In such event, the Delaying Party shall be entitled to a delay in Settlement and shall give as much notice as possible
to the Non-Delaying Party and closing attorney. If the Delaying Party fails to complete Settlement and Closing within seven (7) days of
the Settlement Date (including any amended Settlement Date agreed to in writing by the parties), then the Delaying Party shall be in
breach and the Non-Delaying Party may terminate this Contract and shall be entitled to enforce any remedies available to such party
under this Contract for the breach.
13. POSSESSION: Possession, including all means of access to the Property and transferable amenities and services (keys including
mailbox keys, codes including security codes, garage door openers, electronic devices, etc.), shall be delivered upon Closing as defined
in Paragraph 1(n) unless otherwise provided below:
A Buyer Possession Before Closing Agreement is attached (Standard Form 2A7-T)
A Seller Possession After Closing Agreement is attached (Standard Form 2A8-T)
Possession is subject to rights of tenant(s) (Parties should attach either Additional Provisions Addendum (Form 2A11-T) or
Vacation Rental Addendum (Form 2A13-T))
14. ADDENDA: Buyer and Seller should note that real estate brokers cannot draft addenda to this Contract.
Identify other attorney or party drafted addenda: __________________________________________________________________
____________________________________________________________________________________________________________
15. ASSIGNMENTS: This Contract may not be assigned without the written consent of all parties except in connection with a tax-
deferred exchange, but if assigned by agreement, then this Contract shall be binding on the assignee and assignee’s heirs and successors.
Additional Provisions Addendum (Form 2A11-T)
New Construction Addendum (Form 2A3-T)
Additional Signatures Addendum (Form 3-T)
Back-Up Contract Addendum (Form 2A1-T)
Owners' Association Disclosure Addendum
(Form 2A12-T)
FHA/VA Financing Addendum (Form 2A4-T) Seller Financing Addendum (Form 2A5-T)
Short Sale Addendum (Form 2A14-T)
Lead-Based Paint Or Lead-Based Paint Hazard Addendum (Form 2A9-T)
Loan Assumption Addendum (Form 2A6-T) Vacation Rental Addendum (Form 2A13-T)
Document Specifics
| Fact Name | Description |
|---|---|
| Purpose of the Form | The Standard 2 T form serves as a legal agreement outlining the terms of a real estate transaction between a buyer and a seller in North Carolina. |
| Governing Law | This form is governed by North Carolina real estate laws, which include statutes related to contracts and property transactions. |
| Property Description | The form requires a detailed description of the property being sold, including the street address and legal description to ensure clarity in the transaction. |
| Fixtures Included | It specifies which fixtures, such as built-in appliances and light fixtures, are included in the sale, ensuring both parties understand what is being transferred. |
| Earnest Money | The form outlines the earnest money deposit required from the buyer, which demonstrates their commitment to the purchase and is held in escrow until closing. |
| Conditions for Purchase | Buyers must be able to secure financing and there must be no restrictions on the property's use, which are critical conditions for the contract to remain valid. |
| Inspection Rights | The form grants buyers the right to inspect the property, allowing them to ensure it meets their expectations before finalizing the purchase. |
| Closing Process | It defines the closing process, including the transfer of title and the responsibilities of both the buyer and seller to ensure a smooth transaction. |
Standard 2 T: Usage Instruction
Completing the Standard 2 T form is a crucial step in the process of purchasing property. This form serves as a formal offer to purchase a property and outlines the terms and conditions of the sale. It is essential to fill it out accurately to avoid any potential issues later on. Below are the steps to guide you through the process of filling out the form.
- Identify the Buyer and Seller: At the top of the form, clearly write the names of the Buyer and Seller. Make sure to include their full legal names.
- Describe the Property: Fill in the details about the property being purchased. This includes the street address, city, county, and state. Provide the legal description of the property as well.
- List Fixtures: Specify any fixtures that are included in the sale. If there are exceptions, list those items as well.
- Include Personal Property: If any personal property is included in the purchase, write it down in the designated area.
- State the Purchase Price: Enter the total purchase price of the property. Break down how this amount will be paid, including earnest money and any additional deposits.
- Outline Conditions: Fill in any conditions that must be met for the contract to be valid, such as financing requirements or property condition.
- Address Special Assessments: Indicate if there are any pending governmental or owners’ association special assessments related to the property.
- Detail Prorations and Adjustments: Specify how various costs, such as taxes and rents, will be prorated at closing.
- Assign Responsibilities for Expenses: Clearly state which party is responsible for various costs associated with the transaction.
- Include Fuel Purchase Agreement: If applicable, note any agreements regarding fuel situated in tanks on the property.
- Evidence of Title: Indicate the seller's obligation to provide title information to the buyer.
- Property Inspection: Choose an option regarding property inspections and outline any necessary conditions or repairs.
- Specify Closing Details: Provide the date and location for closing, as well as any additional provisions related to possession of the property.
- Sign the Form: Ensure both parties sign and date the form. Include the name of the escrow agent if applicable.
After completing these steps, review the form carefully to ensure all information is accurate and complete. Once both parties have signed, the form will become a binding contract, initiating the next steps in the property transaction process.
Learn More on Standard 2 T
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What is the purpose of the Standard 2 T form?
The Standard 2 T form is a contract used in real estate transactions in North Carolina. It outlines the agreement between a buyer and a seller regarding the purchase of a property. This document includes details such as the property description, purchase price, and terms of the sale, ensuring both parties are clear on their obligations and rights.
-
What information is required about the property?
The form requires specific details about the property, including:
- Street address
- City, county, and state
- Legal description of the property
- Any existing restrictive covenants
Providing accurate information helps avoid disputes and ensures a smooth transaction process.
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What are fixtures and personal property in this context?
Fixtures are items that are permanently attached to the property, such as built-in appliances, light fixtures, and ceiling fans. Personal property refers to movable items included in the sale, like furniture or equipment. The form specifies which fixtures and personal property are included in the sale, providing clarity for both parties.
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How is the purchase price structured?
The purchase price is broken down into several components, including:
- Earnest money deposit
- Additional earnest money deposit
- Option fee, if applicable
- Assumption of existing loans
- Seller financing, if applicable
- Balance due at closing
This structure helps ensure that both the buyer and seller understand the financial aspects of the transaction.
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What conditions must be met for the sale to proceed?
Several conditions must be satisfied, including:
- Buyer obtaining financing
- No governmental restrictions affecting property use
- The property must be in good condition at closing
- Seller must clear any liens or charges against the property
These conditions protect both parties and ensure the transaction can be completed successfully.
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What happens if there are issues discovered during inspections?
If inspections reveal necessary repairs, the seller has the option to complete them or decline. If the seller declines, the buyer can either accept the property as-is or terminate the contract. This clause allows for negotiation and ensures that the buyer is not stuck with unexpected issues.
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What is the process for closing the sale?
Closing occurs when the deed is recorded. All parties must sign necessary documents and complete any financial transactions. The form specifies a timeline for closing and outlines who is responsible for various costs. This ensures that everyone is prepared for the final steps of the transaction.
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Can the Standard 2 T form be modified?
Yes, the form can be modified to suit the needs of both parties, but any changes must be made in writing and signed by all involved. This ensures that all parties are in agreement and protects their interests throughout the transaction.
Common mistakes
Filling out the Standard 2 T form can be a daunting task, and many individuals make common mistakes that can lead to complications down the road. One frequent error is leaving fields blank. For instance, when entering the purchase price, failing to provide a specific dollar amount can create confusion and potentially invalidate the offer. It is crucial to fill in every required section to ensure clarity and completeness.
Another mistake involves incorrect or incomplete property descriptions. Buyers often neglect to provide a detailed legal description of the property. This oversight can lead to disputes regarding the exact boundaries and characteristics of the property being purchased. A precise legal description is essential for establishing clear ownership and avoiding future conflicts.
Many buyers also fail to specify included fixtures and personal property. The form allows for listing items that are part of the purchase, but neglecting this step can result in misunderstandings about what is included in the sale. It is advisable to be thorough and explicit about which items are part of the transaction to prevent any post-sale disputes.
Inaccurate earnest money deposits are another common pitfall. Buyers sometimes enter incorrect amounts or fail to indicate the method of payment. This can lead to delays in the transaction process. It is vital to ensure that the earnest money deposit matches the agreed-upon amount and that the payment method is clearly stated to avoid complications.
Buyers frequently overlook the importance of loan conditions. The section regarding financing is often filled out incorrectly or incompletely. Buyers should ensure that they specify the type of loan and its terms accurately. Misrepresenting financing details can jeopardize the transaction and lead to financial repercussions.
Additionally, failing to address contingencies can pose significant risks. Buyers may neglect to include necessary conditions related to inspections or appraisals. Without these contingencies, they may find themselves committed to a property that has undisclosed issues. It is essential to clearly outline any contingencies to protect the buyer's interests.
Another common error is misunderstanding the implications of special assessments. Buyers sometimes ignore this section, failing to acknowledge any pending assessments that could affect the property. It is crucial to be aware of such assessments, as they can impose additional financial obligations on the buyer after the sale.
Finally, many individuals do not seek legal advice when filling out the Standard 2 T form. This oversight can lead to significant misunderstandings about the rights and responsibilities outlined in the contract. Consulting with a real estate attorney can provide clarity and ensure that all provisions are understood and appropriately addressed.
Documents used along the form
The Standard 2 T form is a key document in real estate transactions, particularly in North Carolina. Alongside this form, several other documents often play a crucial role in ensuring a smooth transaction. Below is a list of these documents, each accompanied by a brief description.
- Earnest Money Deposit Receipt: This document confirms the receipt of earnest money, which shows the buyer's serious intent to purchase the property. It outlines the amount deposited and the conditions under which it will be returned or forfeited.
- Loan Assumption Addendum: This addendum details the terms under which the buyer will assume the seller's existing mortgage. It specifies the responsibilities and obligations of both parties regarding the mortgage loan.
- Seller Financing Addendum: If the seller is providing financing to the buyer, this document outlines the terms of that financing, including interest rates, payment schedules, and any other conditions related to the seller's loan.
- Property Disclosure Statement: This statement informs the buyer about any known issues with the property, such as structural problems or past repairs. It is essential for transparency and helps protect the seller from future claims.
- Inspection Report: After the buyer conducts an inspection, this report summarizes the findings. It can highlight necessary repairs and influence negotiations between the buyer and seller.
- Closing Disclosure: This document is provided to the buyer before closing and outlines the final terms of the loan, closing costs, and other financial details. It ensures that the buyer understands all costs involved in the transaction.
These documents work together with the Standard 2 T form to provide clarity and structure to the real estate transaction process. Understanding each document's role can help both buyers and sellers navigate their responsibilities and rights effectively.
Similar forms
The Standard 2 T form is comparable to a Purchase Agreement, which outlines the terms and conditions under which a buyer agrees to purchase a property. Similar to the Standard 2 T, a Purchase Agreement specifies the property details, purchase price, and conditions for closing. Both documents serve as legally binding contracts that protect the interests of both parties, ensuring clarity regarding the sale process and the obligations of the buyer and seller.
Another document that shares similarities is the Real Estate Sales Contract. This contract also details the terms of a property sale, including the legal description of the property, the sale price, and any contingencies. Like the Standard 2 T form, it requires signatures from both parties to become effective and may include provisions related to inspections, financing, and closing dates.
The Option to Purchase Agreement is another related document. This agreement grants the buyer the right to purchase a property within a specified timeframe, often for a predetermined price. It mirrors the Standard 2 T in that it includes details about the property and the purchase terms but focuses more on the buyer's option rather than an outright agreement to purchase.
A Lease Purchase Agreement is similar in that it allows a tenant to lease a property with the option to buy it later. This document outlines the terms of the lease and the conditions under which the tenant can purchase the property. Like the Standard 2 T form, it includes details about the property, payment terms, and responsibilities of both parties.
The Residential Purchase Agreement is another comparable document. This agreement is specifically tailored for residential properties and includes terms similar to those found in the Standard 2 T form. It typically covers the purchase price, financing options, and any contingencies that must be met before the sale can proceed.
The Exclusive Buyer Agency Agreement also shares similarities with the Standard 2 T form. This document establishes a formal relationship between a buyer and a real estate agent, outlining the agent's duties and the buyer's rights. Both documents aim to protect the interests of the buyer, ensuring that they receive the necessary support throughout the purchasing process.
A Seller Financing Agreement is another document that resembles the Standard 2 T form, particularly in its focus on payment terms. This agreement outlines the financing arrangement between the seller and buyer, detailing the interest rate, payment schedule, and any contingencies. It serves to clarify the financial obligations of both parties, similar to the purchase price section of the Standard 2 T form.
Lastly, a Closing Disclosure is a document that summarizes the final terms of the mortgage loan and the closing costs. It is similar to the Standard 2 T form in that it provides essential information about the transaction, including the total costs associated with the purchase. Both documents are critical for ensuring that the buyer understands their financial obligations before finalizing the sale.
Dos and Don'ts
When filling out the Standard 2 T form, attention to detail is crucial. Here’s a list of nine essential do's and don'ts to guide you through the process.
- Do read the entire form carefully before filling it out.
- Do ensure all names and addresses are accurate and complete.
- Do provide clear descriptions of the property and any included fixtures.
- Do include the correct purchase price and payment terms.
- Do check all dates and deadlines to avoid missing critical timelines.
- Don't leave any sections blank unless specifically instructed to do so.
- Don't use abbreviations that could cause confusion.
- Don't forget to sign and date the form where required.
- Don't overlook the importance of consulting a real estate attorney if you have questions.
By following these guidelines, you can help ensure a smoother transaction process. Remember, accuracy is key when it comes to legal documents!
Misconceptions
- Misconception 1: The Standard 2 T form is only for residential properties.
- Misconception 2: The Buyer is responsible for all repairs before closing.
- Misconception 3: Earnest money is non-refundable.
- Misconception 4: The Seller must provide a warranty for the property.
- Misconception 5: All terms of the contract are negotiable.
- Misconception 6: The form guarantees a successful sale.
- Misconception 7: Buyers can change the closing date at any time.
- Misconception 8: The Buyer has unlimited time to conduct inspections.
- Misconception 9: A verbal agreement can supersede the written contract.
- Misconception 10: The Standard 2 T form does not require legal review.
This form can be used for various types of properties, not just residential. It applies to any real estate transaction in North Carolina.
While the Buyer may conduct inspections, the Seller is often responsible for necessary repairs unless otherwise agreed upon.
Earnest money can be refunded under specific conditions, such as if the offer is not accepted or if the contract is terminated due to unmet conditions.
A warranty is not automatically included. The Seller may provide one, but it is not a requirement of the Standard 2 T form.
While many terms can be negotiated, some are standard and must be adhered to, such as legal descriptions and property condition requirements.
No form can guarantee a sale. The success of a transaction depends on meeting all conditions outlined in the contract.
The closing date is typically set in the contract and can only be changed with mutual consent from both parties.
Inspections must be completed within a specified time frame as outlined in the contract, ensuring timely decision-making.
Written contracts take precedence over verbal agreements. Any changes must be documented and signed by both parties.
While it is not mandatory, consulting a legal professional is highly recommended to ensure that the form meets all legal needs.
Key takeaways
When filling out and using the Standard 2 T form, there are several important aspects to keep in mind. Understanding these key points can help ensure a smoother transaction process.
- Buyer and Seller Identification: Clearly identify both the Buyer and Seller at the beginning of the form. This sets the foundation for the agreement.
- Property Description: Provide a detailed description of the property, including the street address and legal description. This information is crucial for identifying the specific property involved in the transaction.
- Fixtures and Personal Property: List any fixtures and personal property included in the sale. Be specific about what is included and what is not to avoid any misunderstandings later.
- Earnest Money Deposit: Specify the amount of earnest money and the method of payment. This deposit shows the Seller that the Buyer is serious about the purchase.
- Loan Conditions: If the Buyer needs financing, detail the type of loan and conditions required. This includes the loan amount, interest rate, and timeline for securing the loan.
- Property Condition: The Buyer has the right to inspect the property. Any necessary repairs should be documented, and the Seller must respond to repair requests in a timely manner.
- Closing Details: Clearly state the closing date and any conditions that must be met prior to closing. This includes the transfer of title and any obligations of both parties.
By paying attention to these key takeaways, both Buyers and Sellers can navigate the Standard 2 T form more effectively. Proper completion of this form can help prevent disputes and facilitate a successful real estate transaction.