Seller's Under-Contract Transaction Process

Selling your home can be a whirlwind!
We work hard to make the process easy, smooth and successful.

Once you accept a Buyer’s offer (or your counteroffer 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 deadlines, and if not completed properly and on time, could result in forfeiture of the contract and loss of the sale, and, even worse, you could be liable to the buyer for a penalty equal to the earnest money deposit. Just remember, we are your guide throughout this entire process.

Acceptance

This is the date on which the seller or buyer accepts the offer or the last counteroffer, thereby placing the property under contract. Many dates throughout the transaction process may be based on the "Acceptance Date".

Buyer to Deposit Earnest Money

The Buyer may submit Earnest Money with their offer, but more often the Earnest Money is due within "4 calendar days upon acceptance," as stated in the Real Estate Purchase Contract (REPC). Earnest Money is typically deposited with the Buyer's real estate brokerage and 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 the Buyer with information about your home. Below is a list of items you will need to furnish. This is typically completed within 1 week of the Contract Acceptance Date.

• Seller Property Condition Disclosure - completed, signed, and dated forms from the Seller.
• Commitment for title insurance, including any known easements, encroachments, and liens.
• HOA information, budget, minutes, assessments, CC&Rs, survey, and water rights, if applicable.
• Copy of any leases, rental agreements, or property management documents affecting the property that do not expire prior to closing.
• Notice of any claims or conditions related to environmental issues, building violations, or zoning code violations.

Buyer's Home Inspection

During the Buyer's due diligence period, they will conduct a home inspection. They usually do not attend the entire inspection but often meet the inspector at the end to discuss any major concerns and view them together. Once they receive a detailed inspection report with photos of the issues, they may inform us of what they expect to be resolved. Normal wear and tear is generally not covered, but it is common to repair or address deferred maintenance. The inspection is typically completed within one week of the Contract Acceptance Date.

Buyer's Due Diligence

Often called their Evaluations and Inspections, this is the period when the Buyer can learn about, review, and inspect the property and decide if its condition is acceptable. Typically, this process is completed within 2-3 weeks from the Contract Acceptance Date.

• The Buyer will thoroughly review all items provided in the Seller's Disclosures.
• The Buyer may arrange physical condition inspections, tests, and evaluations of the property.
• The Buyer will assess the costs, terms, and availability of homeowner's insurance for the property.
• The Buyer will confirm whether they can do nightly rentals if that is 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 the 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 finalize any remaining details. This is the Buyer's last deadline to cancel the contract (based solely on financing or appraisal issues) and to receive their earnest money deposit back. This process is usually completed within approximately 4 weeks from the Contract Acceptance Date.

• Is the sale contingent upon an appraisal?
• At what amount was the property appraised?
• How is the Buyer's financing progressing? Are they fully approved by underwriting to close?
• Are there any last-minute issues with securing their mortgage?
• Was the sale contingent upon the Buyer selling their previous home?
• Final pre-settlement walk-through inspection.

Settlement

You can complete your side of the Settlement from your home state. The documents can be sent via FedEx or email. We assist in coordinating these details with the title company. In Utah, all closings are handled by title companies. Settlement will only occur when all of the following conditions are met:

• Buyer and Seller have signed all documents required by REPC, Title, Lender, etc.
• Any monies due have been paid by Buyer and/or Seller.
• The proceeds of the new loan have been “funded” by the lender.

Recording of the Sale

Often called the "Closing," the Settlement is completed once the Title Company records the sale with the County. This recording marks the official moment when the property ownership transfers. Sometimes, this can happen on the same day as Settlement, especially for cash sales. However, if a loan is involved, it usually occurs the next day. Be prepared that it can take a couple of days.

• Record the sale with the County.
• Hand off keys, garage door openers, manuals, and warranties.

For most of us, our home is our biggest investment. When it's time to sell, ensure you get the value you deserve with the help of a professional Park City Realtor®. If you'd like to discuss your home sale today, feel free to contact us anytime.

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