David and Jessica Miller come to your office and tell you that they are planning to sell their house. The buyers are named Michael and Linda Wilson, who are married to each other.
After interviewing David and Jessica, you learn the following information:
The Millersâ€™ home is at 678 Clever Drive, Liberty City, New Tudor 77777.
The Wilsons have agreed to pay $350,000 for the house. They are planning to apply for a mortgage to cover $260,000 and they will pay $90,000 in cash. They will pay their own closing costs.
The Wilsons 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 Millers initially wanted to close before July 1 so that they could settle their children in their new home prior to the start of the school year. However, the Wilsons refuse to close before July 15. The Millers will agree to close on or before that date. However, David tells you that they really need to close by July 15, because they need the purchase money to pay for their new house, for which they are closing on July 17.
The Millers tell you that the Wilsons 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 Millers tell you that every January, the homeowners pay their property tax. For this year, $5,000 was paid for property tax by the Millers on January 12.
Although the Millers 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 Wilsons 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 Millers tell you that their neighbor, Robert Brown, owns an easement that allows anyone in Robert’s family to walk across the Miller yard whenever they need to, to catch a bus that goes down a street not accessible directly from the Brown property.
The Millers and Wilsons 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 Millers want to reserve the right to take everything else with them.
The Millers 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 Millers to sell and the Wilsons to buy the property. Base its terms are all of the above information.
Please also prepare a deed transferring the property from the Millers to the Wilsons.