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ATTORNEY REVIEW
Congratulations. You have an agreement in principle that lays out all the terms and conditions in which a buyer will purchase a home from you. Contracts have been signed and attorney review has begun.
Attorney Review Defined. Attorney review is a 3 day grace period in which the attorney’s review and make changes to the contract. During this time you can cancel the contract for any or no reason whatsoever without penalty. During this time you also have the right to pursue other offers from other buyers. Keep in mind the buyer also has the right to change their minds and pursue other properties for sale. The goal is to get the contract in and out of attorney review as quickly as possible.
Selecting the right attorney. If you had a heart problem you would see a heart specialist doctor. The same goes for an attorney. Hire an attorney that specializes in residential real estate sales. Period.
UNDER CONTRACT
Both attorneys’ have signed off on the changes to the contract, attorney review has concluded and the “under contract” phase has begun. The buyer now has important deadlines and responsibilities to maintain throughout this process.
Initial Deposit.
As agreed upon in the contract, the buyer must deliver their up-front deposit within a few days after the conclusion of attorney review.
Home Inspection.
The buyer has 14 days to schedule a home inspection at their own cost. Additional inspections may include a septic inspection, radon testing, pool inspection, tank sweep and chimney inspection. Any issues that arise during inspection will be documented in a report provided by the inspector. The buyer will review the inspectors report with their realtor and send a list of repair requests to the seller’s attorney. We will discuss the buyer’s request and decide upon a response that is reasonable. I will negotiate with the buyer’s agent to resolve these issues as quickly as possible.
Appraisal.
The loan officer together with the buyer’s agent will call me to schedule an appraisal. The appraisal is a buyer’s expense.
Mortgage Commitment.
The buyer has to obtain a commitment from the lender within by the date specified in the contract. The commitment is final confirmation from the bank that the buyer is fully approved for the mortgage. It is proof that the money for the loan is available and that the buyer has satisfied all of the major conditions to obtain the loan.
Smoke and Fire Safety Certificate.
The sale of every home requires that the seller obtain a smoke and fire safety certificate. The town inspector will come to the home and make sure that you have smoke detectors on each floor. Smoke and Carbon monoxide detectors within 10 feet of the bedrooms and a 2:10:ABC rated fire extinguisher mounted on the wall in the kitchen.
Mortgage Commitment.
The buyer has to obtain a commitment from the lender within by the date specified in the contract. The commitment is final confirmation from the bank that the buyer is fully approved for the mortgage. It is proof that the money for the loan is available and that the buyer has satisfied all of the major conditions to obtain the loan.
Certificate of Occupancy.
Not all communities require an inspection beyond the Smoke and Fire Safety certificate. CO inspection beyond Communities in NJ have different names for this. Some are the Certificate of Code Compliances CCC or Certificate of Continued Occupancy.
Property Survey.
The survey is part of the buyer’s closing cost. The survey is a diagram of the property showing the buyer the exact measurements of the property, also known as “Metes and Bounds”.
Utilities Transferred.
You can make arrangements to have the utilities for the home turned off. I recommend waiting until we have a solid closing date and set the shut off date for the day after the closing.
Final Walk Through.
The buyer with the realtor will do a “Final Walk Through”. This will allow the buyer to see the home again for the last time before they close. This is normally done the day of or night before the closing.
Closing.
The attorneys will schedule a closing date making every effort to close on the date agreed upon in the original contract. Be prepared to be flexible.