Agreement of Sale
Congratulations, you are on your way to owning your very own home! Follow these suggestions (and your realtor's advice) so that transaction will go as smooth as possible.
You will be required to submit a deposit on the property you are buying. This deposit will be a percentage of the purchase price of your home. Look to your agent to advise you the amount that will be appropriate for your agreement. Your deposit will be held in an escrow account that will be opened by the office that represents the seller.
The deposit check will be cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees.
The transaction period is often 30 days, but may be longer or shorter. During this time, each item specified in the contract must be completed satisfactorily. By this time you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following:
1. Inspection contingency: this should be completed as soon as possible after the contract to purchase is signed as unsatisfactory results of the inspection may mean that you will want to cancel the contract.
2. Financing contingency: once the contract is signed, you have a period of time to secure funding. If, for any reason, you are unable to secure funding during the period of time granted to you by the contract (and the seller will not provide a written extension of time), you must decide whether you want to remove the contingency and take your chances on getting a loan. You may choose to cancel the purchase contract.
3. A requirement that the seller must provide marketable title.
You and your agent will review the title report. The title must be "clear" to ensure that you do not have legal issues regarding your ownership.
Secure homeowner's insurance. This will probably be required before you can close the sale. Due to certain requirements, depending on your location, obtaining this insurance may require a lengthy process. It would be in your best interest to apply for insurance as soon as possible after the contract is signed.
Contact local utility companies to schedule to have service turned on as of the date of your scheduled settlement.
Schedule the final walk-through inspection. At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a "permanently attached" chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.
This information should be very helpful to get you started! You should be ready to begin the home buying process! Contact one of our experienced professional agents today! We will be here to walk you through the entire process from the beginning to the end. We work hard to give our clients a rewarding experience!