The Process, Step-by-Step
The Sales Contract and Deposit.
A ratified sales contract is a legal agreement between a potential purchaser and the property’s seller.
Some important tips to keep in mind to streamline the process:
- Keep written records of everything. Our agents will assist you in drafting all of the paperwork for your purchase and ensure that you have copies of everything.
- Stick to the schedule. Now that you and the seller are under contract, the contract will set forth a timeline to mark every stage leading up to the closing of the transaction. Meeting the requirements on time ensures that each party is not in breach. During the process our agents will keep you updated, so that you are prepared for each new contractual stage.
The Closing Agent.
Either an escrow agent or title attorney will be selected as the closing agent. The closing agent will hold the earnest money deposit (EMD) in escrow, as well as ensure that there are no unexpected encumbrances on title to the property.
Typically buyers will hire a home inspector who will perform an interior and exterior inspection of the property, including major systems, looking for any defects or deficiencies.
If the contract is subject to an appraisal contingency, an independent licensed appraiser will inspect the property to ensure that the appraised value of the property is not less than the contract sales price. If the property’s acquisition is being bank financed, the bank will typically require the appraisal. However, many cash buyers will also order an appraisal.