There are many obstacles that can kill a deal between the time you accept a contract and getting your money at the closing table. Below are the details that need to be taken care of during this critical period.
- Home inspection.
Your contract may allow the buyer to conduct a home inspection to determine the condition of the property and ensure there are no flaws to the property’s major systems. After the inspection, the buyer may ask for repairs to be completed for him to move forward with the sale. Repair requests are negotiable and can cause the deal to fall through if you and the buyer cannot agree. Keep possible repairs in mind when first accepting an offer.Any agreed upon repairs will need to be completed prior to closing with an additional inspection from the buyer to determine work has been done in a workman-like manner. Consult with your lawyer to see where your obligations are. Find a Home Inspector.
- Property Appraisal.
Once the property inspection is complete and repairs negotiated, the buyer’s mortgage company will order an appraisal of the property to make sure the buyer is not over-paying, and may even hire a surveyor to verify the property’s boundaries. Find an Appraiser. - Title Search.
The buyer’s lawyer (usually associated with the title company) will perform a standard title search on your property to make sure there are no liens or other legal restrictions on your property. Some restrictions might be benign, such as easements (right of way) for storm drains, or even an access road for a neighboring property. If the title search does turn up any liens, your lawyer will advise you; you may be required to clear any problems. Find a Title Company for closing. - Removal of conditions.
If any conditions or contingencies were written into the contract, such as the buyer selling his own house before completing the purchase of yours, then they must be removed (waived) by the date specified in the contract for the sale to go through. Otherwise, the contract becomes null and void. It is a good idea to keep in touch with the buyer as these dates approach, to ensure that everything is on track, and make any changes (such as extending the date of the condition, if you are both willing). - Final walk-through.
A few days prior to or on the day of closing, the buyer will usually perform a personal inspection of the property, to make sure that it is in the same condition as agreed upon in the contract – you are legally obligated to keep the house in materially the same condition. All disputes over repairs or the condition of the property must be resolved before closing can take place. - Closing Day.
As closing day approaches, you should advise your mortgage company that you intend to pay out the mortgage, and let your utility providers know when to shut off services under your name. Your lawyer will take care of all the details needed to close the deal, such as collecting outstanding money, settling the transfer of taxes, paying any loans or liens, transferring the deed to the new owner, and securing title insurance. Find a Title Company or Real Estate Lawyer for closing.
Congratulations on a successful sale!
Tags: Closing, Seller Negotiations
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