Redefining Service in Real Estate
All dates referred to in your real estate contract are based on calendar days, not business days.
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Reaching a successful real estate closing requires paying attention to an incredible number of details. I will work closely with you to make sure all details are handled. Remember, all dates referred to in your real estate sales contract are based on calendar days, not business days.
Below you will find detailed information about what to expect from contract to closing which will include Seller action items during this time period.
I offer my clients access to all real estate contract documents through the RE/MAX Roundtable document system. After contracts or addenda are executed by all parties I upload them to the site for easy access for my clients.
Once there is a fully executed and accepted contract by the parties, as stated in paragraph 5 of the TREC promulgated contract, the Buyer will deposit the earnest money funds and the option fee with the title company. The Seller may request the release of the option fee at any time from the title company, or may choose to receive it with their closing proceeds.
The time performance on both the option fee and the earnest money funds be delivered to the title company is within 3 days after the effective date of the contract by 5:00 pm local time.
If the Buyer fails to pay the option fee to the title company with the time prescribed, the termination option will not be a part of the contract and the Buyer shall not have an unrestricted right to terminate the contract.
If the last day to deliver the earnest money falls on a Saturday, Sunday, or legal holiday, the time to deliver the earnest money is extended until the end of the next day that is not a Saturday, Sunday, or legal holiday.
The title company will send my office a receipt for the earnest money and option fee once it is received and Sellers will be provided a copy.
After the contract is fully executed the MLS is updated to reflect an "Option Pending" status. While in this status the listing will be visible on the public access site of HAR.com.
Upon completion of the option period, the status will be changed to either "Pending Contine to Show" and then "Pending". The "Pending Continue to Show" status is for listings that are under contract with a contingency and taking back-up offers. The "Pending" Status is for listings that are no longer available to show.
Seller Action Item: Sellers typically leave the property during
the Buyers inspections to allow the Buyer and their inspector a
comfortable environment to thoroughly inspect and discuss the home. If possible,
please make arrangements and allow the Buyers this courtesy.
Seller Action Item: Prior to the inspector's arrival, please make sure that the
electrical panel,
sprinkler system control panel, attic entries or access, water heaters, and HVAC system in the attic is completely accessible
with no boxes or other items stored in these areas. Inspectors will not move anything and
if an area is not easily accessible, it could cause the need for a re-inspection resulting in a fee of approximately $100 or more
(costs vary).
An option fee is paid at the time of execution of the sales contract by the Buyer for the unrestricted right to terminate the contract within a specified time frame called the “option period”. The time performance for the option period is calculated by starting with the first day after the effective date of the contract, and counting the number of days specified to reach the last day for performance.
During the option period is when the buyer typically performs any pertinent inspections, and attempts to negotiate any needed repairs, if any, that are discovered during the inspections.
My office will contact the Buyers agent to inquire about requested times for inspections and will coordinate the scheduling with the Seller as soon as possible.
Seller Action Item: Complete repairs and treatments as soon as possible
If any repairs or treatments are agreed upon for the sales contract, it is suggested that those items be completed as soon as possible. This helps eliminate any chance for last minute scheduling issues that might result in delays and could cause the Seller to be in default of the contract. Plus, once these items are completed Sellers can focus on packing and preparing for the move.
A copy of the sales contract is also forwarded to the Buyers loan officer immediately upon contract execution by all parties. If your contract incudes a Third Party Financing Condition Addendum, this is the financing contingency and allows a specific number of days for the underwriting of the Buyers loan. Prior to the expiration of this time frame the Buyer will need to satisfy all of the lender’s financial requirements relating to assets, income, and credit history.
A copy of the executed sales contract is immediately delivered to the title company. The title company will begin the title search and examination in order to provide a title commitment. The title commitment is a commitment for title insurance based on the results of a title search and is a summary of the title conditions including title defects, liens, etc. It also identifies conditions to be met in order to insure the proposed real estate transaction and is an agreement to issue a title insurance policy upon payment of the premium.
Closing 101 is an educational website offered by The American Land Title Association covering all aspects of the title process.
Typically upon the Buyers loan approval, a new survey, if needed, and the appraisal will be ordered as applicable. Typically the appraisal is ordered by the Buyers lender and the survey is ordered by the title company. Some lenders will require that the appraisal be done prior submitting the loan to underwriting and others allow it to be done after the underwriting process.
I will inquire about the lenders guidelines and notify you of their timelines. Sellers do not need to leave the property during the appraisal.
The appraisal is paid for by the Buyer and if a new survey is required, it will be paid for as negotiated in the sales contract in Paragraph 6.C.
Seller Action Item: Provide the title company with lender names,
account numbers and account holder names for any liens on the property,
if any.
The title company will need to order payoff information for any liens/loans that are on the property, if any. Please provide this information for your primary mortgage and any home improvements loans, if applicable. to the title company escrow officer or escrow assistant.
Seller Action Item: Schedule termination of utilities, submit your
change of address, other items needed for your actual move.
There is a Tools For Your Move page in the Client Tools and Resources section of my web site that contains helpful information to help prepare for your move.
Usually on the day of closing, or the evening before for an early morning closing, Buyers will do a "walk-through" of the property to ensure all negotiated repairs have been completed by the Seller and the property is a satisfactory condition. Occasionally, based on the type of repair or treatment performed by the Seller, Buyers might request an earlier walk-through in addition to their final walk-through.
Prior to closing my office will send you the address and direction for the title company.
Seller Action Item: On the day of closing Sellers should bring a photo
ID, and if expecting sale proceeds, please bring your bank wire transfer
information.
Three days before closing, the title company will provide a copy of a preliminary closing disclosure statement. Once we receive a preliminary closing disclosure, I like review it with Sellers prior to closing so that you are completely comfortable with all the figures at the closing table.
If your expecting proceeds from the sale, the title company can either provide you a regular check or wire the funds directly to your bank account. I usually suggest a wire because banks might place a hold when depositing a regular check.
You can review a sample of a closing disclosure below:
Seller Action Item: Contact your lender and insurance agent about
refunds.
After closing, any monies in your loan escrow account, if applicable, and a proration of any prepaid home insurance premiums will typically be refunded to you. Prior to closing you can contact your lender and insurance agent for estimates on what these refund amounts are expected to be and expected time frames to receive the refund. After closing contact your lender and insurance agent again to place your request to initiate applicable refunds.
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