Contract Preperation -Crossing the T’s and Dotting the I’s
The Earnest Money Contract is a legally binding document whereby the Seller and Buyer agree to terms under which the Buyer will acquire the Seller’s property.
“Who is paying the various expenses of the sale, including closing cost?”
Both Buyers and Sellers incur expenses during the transaction process. Buyers are typically responsible for costs associated with the down payment placed on their new home, any home inspections, a portion of the escrow fees, a title insurance policy benefiting the lender, and any loan costs. Sellers generally pay for a portion of the escrow fee as well as a standard title insurance policy. The responsibility of the annual expenses of property taxes and homeowner association fees is typically shared between Buyers and Sellers and prorated based on the closing date.
“What is the actual closing date?”
The closing date of a real estate transaction is the date in which proceeds from the sale are available to the Seller and the transfer of title has been recorded by the county. The lender is responsible for providing the buyer with a good faith estimate, which will provide a close approximation of the Buyer’s financial requirement to close the transaction.
“What is the possession date?”
The possession date is agreed upon between the Buyer and Seller during the negotiation process. If the Seller remains in possession after closing, there should be a Seller’s Temporary Lease addendum in place prior to closing.
Home Warranty – Why you should request a warranty
To decrease the chances that you’ll have to pay for major repairs on a home after you buy it, invest in a home warranty. Our Agent can recommend a few home warranty companies that will cover many of the costs of repairs or replacement systems to your new home. From water heaters to central air and heating, the home warranty protects against the normal wear and tear of your new home’s covered major mechanical systems and built-in appliances for a specific period of time after the close of the sale.
To lessen the stress of buying a home, and for peace of mind that comes with a home warranty, it makes perfect sense to call your Agent for more details. Click here to contact us about one of the home warranty company’s coverage.