THE HONEST BROKER: THE NEXT STEPS AFTER SIGNING A CONTRACT
Once a contract has been signed there are still many things to be done by all parties; buyer, seller and agents on both sides. The contract dictates the terms of the sale, dates to be met, and approvals to be obtained prior to closing.
- Provide the initial escrow deposit. This deposit occurs when the offer is made, or up to 3 days from the last signature or initials of both parties occurs (EFFECTIVE DATE).
- Buyer shall make their mortgage loan application to the lender within 5 days from effective date and submit all required documentation in a timely manner to their lender.
- Buyer needs to read, within 3 days, the association’s (if there is one) documents and bylaws and decide if they are ones that they can agree to follow.
- The buyer shall initiate application to the association with 5 days of effective date including, paying any fees involved and making themselves available for an interview if required.
- Investigate and secure their property’s insurance.
- Provide all HOA documents for the buyer to review within the first 3 days of contract
- Provide a Seller’s Disclosure ( History of the property)
- Provide access to property for all of these activities: appraisal, inspection & walk through
- Seller must assist and cooperate in closing all/any permits
- Seller shall maintain the property, including, but not limited to, lawn, shrubbery, and pool, in the condition existing as of Effective Date until the date of closing.
- Seller shall leave all items that were included as disclosed in the listing and shall not replace any item(s) for lesser value items. For example, if the listing included expensive Bosch appliances, the seller can’t replace them with lower end GE appliances.
- Buyer agent shall ensure the initial deposit, and any other deposits, get placed and to the escrow agent of choice.
- Buyer’s agent ensures that the applications to HOA and lender are initiated within the contract’s designated time frame.
- Buyer’s and seller’s agent must make sure that all contract deadlines are met.
- Both agents are responsible to maintain communication with their respective clients, the title company, lender, association, and each other to ensure that the closing goes smoothly and to prevent any problems that may arise.
tay well and healthy
Diane Lott, Broker
Paradise Found Realty, Inc. of Palm City
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