Recently, the Hawaii Association of realtors has issued a new set of specification for selling and buying of residential properties in Hawaii. The most obvious change is in title. The new title is “Purchase Contract” whereas the old title was “Deposit Receipt Offer and Acceptance (DROA)”. The outline of new purchase contract is stated below.
The Purchase Contract is consist of four major parts or sections following an introductory section. These four sections are named as; Section A, Section B, Section C, and Section D. the main part or section of the whole Purchase Contract is Section C. Here is the brief overview of all these major section.
Section A:- This section defines and explains the process of “Agency Disclosure”. Agency Disclosure is needed to define and explain the relationship of the agency and its customer.
Section B: - This section defines and explains the initial deposit of the purchaser, and it is usually signed by the agent belongs to purchaser.
Section C: - Section C is the main and most important part of the whole Purchase Contract. It defines and explains the terms and conditions related to purchasing the let office. This also has a list of important documents. These documents may be attached physically or by any reference.
Section D: - This section of contract form defines and explains weather the seller is totally agreed on the offer of the purchaser. If seller is not agreed he can place a counter offer using HAR’s standard Counter Offer Form. Along with agreement of seller to purchaser, this section also contains seller’s agreement of payment to the agent agency.
Although it is not essential to attach HAR’s standard form, but in many cases HAR’s standard form “Cooperating Brokerage Firm’s Separate Agreement” is also attached with purchased contract form. This agreement is in between the purchaser and sellers brokerage agencies. We recommend you to take this new set of specification and get benefit from this. We wish you “All the Best”.