Home and commercial space transactions can be complex, and the timeline is subject to individual circumstances. Below are the general steps and how you can best set yourself up for a smooth transaction:
1. Accepted Offer
After negotiations with the Buyer, you finally settle on a purchase price. You will then enter into a contract called the Purchase Agreement. An attorney is promptly hired to facilitate this agreement. Your attorney will follow and maintain the deadlines set forth, look out for your best interest, and answer any questions you may have. Attorneys can also advise on the proper disclosures, which are defects that you let the buyer know about the property before the purchase. The Buyer then pays their first round of earnest money—a deposit put down by the buyer to secure the transaction.
2. Inspection
The Buyer can have the property professionally inspected, and based on the report, can request repairs be made or credits for those repairs. These negotiations are usually conducted by attorneys in the review period.
3. Attorney Review Period
During this stage, both the buyer’s and seller’s attorney will exchange a series of letters proposing alterations to the Purchase Agreement, negotiate repairs and credits, and review any other associated documents such as those in condominium transactions. This can also include tax proration. Once review is closed out, there could be a second round of earnest money due.
4. Final Steps Before Closing
If the Buyer is taking out a mortgage, there will be an agreed upon mortgage commitment deadline. Before the deadline, your lender must give the go ahead to close after they “commit” to lending the money for the property. In addition, there will likely be a final walkthrough before the closing date where buyers can check for full functionality of appliances and any damage, confirm requested repairs were made, and ensure that you are completely moved out of the property.
5. Closing
At the closing date, keys are exchanged and the closing documents are signed. Sellers typically do not attend, and your attorney should work out a way to sign the necessary closing documents before the actual closing date.
FAQs:
How much will representation and the closing cost?
As a seller, you are responsible for a share of the closing costs associated with realtors and title. Realtor commission is usually 3-6 percent of the sale price. We charge a flat rate for our services due at closing. Contact us at www.acunalawoffices.com/contact for an individual estimate or go to www.acunalawoffices.com/real-estatetransactions to view are flat fee.
Under what circumstances could my transaction fall through?
The buyer can walk away from the transaction if the contingencies do not fully resolve. However, the Seller may be eligible to retain the earnest money as consolation if they back out for different reasons. This is evaluated on an individual basis.
How long will the transaction take after we make an initial offer?
This duration is often subject to the particular circumstances for each transaction. Usually, the Seller’s timeline is between one and two months.
What is an Escrow Account?
Escrow are funds that are held by a third-party escrow agent in an account until the contract has been fulfilled. Earnest Money is held in this account and will be applied to the purchase price or down payment if the sale goes through.
