The Purchase Contract and the Earnest
agreement is a legal arrangement between a potential purchaser and you as the
Some important tips to keep in mind to streamline the process:
written records of everything. We will assist you in making sure the Purchase
Offer, Counter Offers and other related documents for the purchase of your home
is on track and that timelines are followed.
to the schedule. Now that you have sold your home, you and the buyer will be
given a timeline to mark every stage in the process of closing the real estate
contract. Your Agent will help you meet the requirements on time ensuring a
smoother flow of negotiations so that each party involved is not in breach of
their contracts. During the process, we will keep you constantly updated, so
you will always be prepared for the next step.
The Closing Agent
A title (Escrow)
company will typically be selected as the closing (Escrow) agent. The closing
agent will hold the deposit in escrow and will research the complete recorded
history of the property to ensure that the title is free and clear of
encumbrances or liens by the date of closing and that all new encumbrances are
properly added to the title.
Once the Buyers’
offer is accepted by you as the Seller, the Buyer will schedule a licensed
property inspector to inspect the property within the timeframe that was agreed
upon in the effective contract to purchase.
Depending on the outcome of these inspections, one of two things may happen:
1. Either each milestone
is successfully closed and the contingencies will be removed, bringing you one
step closer to the close, or
2. The buyer, after
reviewing the property and the papers, requests that you as the seller make
repairs to the property per the inspections, or the terms of contract. We
can help you find the right professionals make repairs if so needed.
Appraisal and Lending
It’s important that
you keep in close communication with your agent who will let you know when
additional documents are. If the agreement is conditional upon financing, then
the property will be appraised by a licensed appraiser to determine the value
for the lending institution, via a third party. This is done so that the
lending institution can confirm their investment in your property is accurate.
Appraisers are specialists in determining the value of properties, based on a
combination of square footage measurements, building costs, recent sales of
comparable properties, operating income, etc.Typically, within two weeks of
closing, double check with the lender for the buyer will contact us to confirm
sure the loan will go through smoothly and on time.
The Buyer will need
to obtain property insurance for their new home. As a seller, you will want to
contact your property insurer provider to confirm that your policy is cancelled
so you no longer pay to insure the home.
Don’t Forget About Utilities
When you move out of
your new home, you will want to make arrangements for electricity, water, gas,
cable, and phone to be taken out of your name. The Buyer will make their own
arrangements to transfer everything to their name.