%2010.png)
ATTORNEY REVIEW
Congratulations. You have an agreement in principle that lays out all the terms and conditions in which you will purchase a home from a seller. Contracts have been signed and attorney review has begun.
Attorney Review Defined. Attorney review is a 3 day grace period in which the attorney reviews and makes 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 properties. Keep in mind the seller also has the right to pursue other buyers to get a higher price or better terms for their homes. 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. You now have important deadlines and responsibilities to maintain throughout this process.
Documentation.
Your lender will require you to provide ample documentation throughout the process. NEVER delay in providing them with the documents they require. Any delay can jeopardize the transaction.
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.
Homeowners Insurance.
The buyer has to purchase a home owner insurance policy. You can purchase insurance for your personal property but it is not mandatory.
Title Work.
Your attorney will order title which is a background check to discover any lawsuits or liens on the property. Your attorney will advise you if there are any known issues and make sure they are clear before closing.
Property Survey.
The buyer’s attorney office with the realtor will schedule a 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 must make arrangements to have the utilities for the home put in your name on or about the day of the closing.
Clear to Close.
"Clear to close" indicates all conditions for the mortgage approval are met. The lender has reviewed all documents, completed the appraisal, and finished underwriting. This milestone allows the borrower to proceed with closing and finalizing the home purchase.
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.