Sellers Under-Contract Transaction Process
Once you accept a Buyer’s offer (or your counter-offer is accepted by the Buyer) your home is then “Under Contract" (in-Escrow). Although under contract, 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 the contract and loss of the sale. You might also be liable for a penalty amount equal to the earnest money due to the Buyer. Listed below are some of the steps to expect.
Providing the Seller's Disclosures
This is the process where you as the Seller are required to provide to the Buyer information relating to your home. Below is the list of items you will need to provide. This is usually completed within 1 week from the Contact Acceptance Date.
- Seller Property Condition Disclosure - filled out forms, signed and dated from Seller.
- Commitment for the policy of Title Insurance, showing any known 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.
Buyer's Due Diligence (Evaluations and Inspections)
This is the time period provided to the Buyer to learn, review, and inspect your property, and decide if the condition is acceptable. This is usually completed within 2-3 weeks from the Contract Acceptance Date.
- The Buyer will carefully review all items provided in the Seller's Disclosures.
- The Buyer may schedule physical condition inspections, tests and evaluations of the property.
- The Buyer will review the costs, terms and availability of homeowner's insurance for the property.
- The Buyer will verify the ability to do nightly rentals, if important.
Buyer's Right to Cancel or Resolve Objections
If the Buyer determines from his Evaluations and Inspections that the property's physical, title, or legal conditions are unacceptable, the Buyer 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 Buyers last deadline to cancel the contract (based only on financing/appraisal issues) and get their earnest money deposit back. This is usually completed within 3-4 weeks from the Contract Acceptance Date.
- Is the sale contingent upon an appraisal?
- At what amount did the property appraise?
- How is the Buyer's financing going? Are they fully approved to close?
- Are there any last minute issues for securing their mortgage?
- Was the sale contingent upon the Buyer selling their previous home?
- Final pre-settlement walk-through inspection.
Settlement (Closing)
You can complete your side of Settlement from your home state. The documents can be FedEx or Email. 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 Recorder.
- Hand off keys, garage door openers, manuals, warranties.
- Help you to find a new home in this area or offer relocation assistance.
When you're ready to take the next step toward selling your home, we're here to help. Our comprehensive marketing plan will get your home seen by thousands of motivated buyers. When we list your home, we do so at no additional cost. When you start to get offers, we can represent you during the emotionally charged negotiating process and ensure that you get the best price, and favorable closing terms that are clearly spelled out. As your professional aides, we also oversee all paperwork related to the sale. Below is an outline of the home selling process.
For most of us, our home is our biggest investment. When it's time to sell, get the value you deserve with the help of a professional Park City Realtor®. If you'd like to discuss your next home sale today, please contact us anytime.
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