Seller's "Under-Contract" Transaction Process
Selling your Park City home can be a whirlwind!
We work hard to make the process easy, smooth and successful.
Below is a Summary of the "Under-Contract" 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, and even worse, you could be liable for a penalty amount equal to the earnest money due to the Buyer. Just remember, we are your guide throughout this entire process.
This is the date that the seller or the buyer accepts the offer, or last counter-offer, hereby placing the property under contract. Many dates throughout the transaction process may be based on the "Acceptance Date".
Earnest Money to be Deposited
The Buyer may turn in Earnest Money with their offer, but more often the Earnest Money will be due within "4 calendar days upon acceptance" as stated in the Real Estate Purchase Contract (REPC). The Earnest Money is normally deposited with the Buyer's real estate brokerage to be held in a real estate trust account until closing.
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 Contract 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.
The Buyer's Home Inspection
During the Buyer's due diligence timeframe, they will complete a home inspection. They typically do not attend the entire inspection, but often they do meet the inspector at the end to have the opportunity to discuss any major concerns and visually see them together. Once they get a full detailed inspection report with photos of the concerns and issues they may bring to our attention what they expect to be resolved. Normal wear and tear is not generally covered, but it is common to fix or repair items of deferred maintenance. The inspection is usually completed within 1 week from the Contract Acceptance Date.
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 about 35-40 days 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 from underwriting?
- 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.
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 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” by lender.
Closing or Recording of the Sale
Once Settlement has been completed, the Title Company can then Record the sale with the County. Once recorded, this is the official point when the ownership of the property changes hands. Sometimes this can happen the same day as Settlement, especially when it is a cash sale. But if a loan is involved, it's often the following day.
- Record the sale with the County.
- Hand off keys, garage door openers, manuals, warranties.
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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