Buyers Under-Contract Transaction Process
We often get questions from out-of-state, or out-of-country buyers who want to know how the offer and sales process works here in Utah. As your Buyer's Agent we work for you, and will carefully guide you throughout the process. Below is a brief summary of what to expect:
You can write an offer without delivering Earnest Money. We write the offer on 3 state approved forms: "Real Estate Purchase Contract", "Buyers Due Diligence Checklist", "Buyer-Broker Agreement & Agency Disclosure". We prepare the forms for you to sign, based on your instructions. Once all is properly signed (can easily sign digitally) we then submit the offer to the Seller.
Once your offer is accepted by the Seller (or once you accept the Seller's counteroffer) you are then officially “Under Contract” (same as In-Escrow). Once under contract, you must deliver your Earnest Money Deposit within 4 calendar days (usually by wire). The Earnest Money is normally held at our Summit Sotheby's brokerage trust account or at the title company. If you cancel the contract during your Due Diligence time period you get your full earnest money back. You can cancel for any reason or no reason at all, pretty simple - but written cancellation must be before the due diligence time period ends. If you cancel after the Due Diligence deadline date, you most likely will not get your Earnest Money back, unless you are dealing with a very, very nice Seller who generously allows you to have it back.
Although under contract for sale, we still have much work to do to ensure a successful closing. Many of these steps will have strict deadline dates applied, and if not completed properly and on time, could cause forfeiture of your earnest money and loss of the sale. Below is an outline for the steps to expect, and we will be your guide through the entire process. Its our job to keep you updated, informed, protect your Earnest Money and make the process as easy and smooth as possible.
Remember, we are your Buyer's Agent. We represent YOU. We are here to work for you, and look out for your best interests, so when we communicate with you, please communicate back promptly with us.
Receive the Seller's Disclosures
This is the process where the Seller is required to provide you the Buyer information relating to the property. The Seller will be providing the following information. This is usually completed within 1 week from the Contract Acceptance Date.
- Seller's Property Condition Disclosure - filled out form, signed and dated from Seller.
- Commitment for the policy of Title Insurance, showing any easements, encroachments and liens.
- HOA information, budget, minutes, assessments, CC&R's, and survey, water rights if applicable.
- Copy of any leases, rental, and property management affecting the property not expiring prior to closing.
- Notice of any claims and/or conditions relating to environmental problems & building or zoning code violations.
- Inventory of Included Personal Property, if any.
Your Buyer's Due Diligence (Evaluations and Inspections)
This is the time period provided to you as the Buyer to learn, review, and inspect the property and decide if its condition is acceptable. This is usually completed within 2-3 weeks from the Contract Acceptance Date.
- Carefully review all items provided in the Seller's Disclosures.
- Schedule any physical condition inspections, tests and evaluations deemed necessary.
- Verify the ability to do nightly rentals if important.
- Review the costs, terms and availability of homeowner's insurance for the property.
Your Right to Cancel or Resolve Objections
This must be completed within your Buyer Due Diligence time period!
(If you want to get your Earnest Money back)
If you determine from your Evaluations and Inspections that the physical, title, or legal conditions of the property are unacceptable, you may:
- No later than the Due Diligence Deadline, cancel the contract by written notice to Seller.
- Or no later than the Due Diligence Deadline, resolve in writing any objections.
Financing, Appraisal and Any Remaining Contingencies
In the final steps of the transaction we will coordinate and complete any remaining details. This is the last date where you can still cancel the contract (based only on financing/appraisal issues) and still get your earnest money back. This is usually completed within 3-4 weeks from the Contract Acceptance Date.
- Is the sale and/or mortgage contingent upon an appraisal?
- At what amount did the property appraise?
- How is your financing going? Is the new loan fully approved and ready to pull docs?
- Are there any last minute issues for securing your mortgage?
- Is the sale contingent upon you selling your previous home? How is that sale going?
- Schedule a final pre-settlement walk-through inspection.
Settlement (Closing)
You can complete your side of Settlement from your home state, or overseas. The documents can be FedEx or Email to you, and usually must be FedEx back as you will need to deliver original notarized copies. We help coordinate these details with the title company. In Utah, all closings are performed by title companies. Settlement, and then Closing shall take place only when all of the following occur:
- Buyer and Seller have signed all documents required by REPC, Title, Lender, etc.
- Any monies required to be paid have been delivered by Buyer and/or Seller.
- The proceeds of the new loan have been "funded"
- Then all closing docs are "recorded" at the County Recorders office.
- Receive keys, garage door openers, manuals, warranties.
We have contact info for all utility companies on our Utilities Page.
The property is now yours, so move on in and enjoy, Congrats!
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