Contract to Close

What Happens Now For the Home Seller?

Contract to Close.

When You Have a Ratified (signed) Contract your Realtor, Lender and Attorney will do a number of things:

Home Inspection – if one is requested by the buyer (usually paid for by the buyer) this will be the first thing to happen in the closing process

If your home has no items to be repaired you will move to #2

If your home has repairs you may

- Fix Them

- Negotiate Them

- Pay for the Repair to be done

- Pay nothing and place your home back on the market

Survey – A survey may be requested by the buyer. If so, this will be ordered so that the attorney will have the document to accurately write the deed description.

Appraisal – THE MAC DADDY of the approval process. Do Not pack, do not commit to another dwelling, do not change anything until the appraisal is over and approved. This will constitute about 80% of the approval and while I am not saying Nothing can stop us now, you can be relatively sure that closure will happen after appraisal is complete.

Title Search – Done by the attorney, the title search will show any liens against the property. If liens appear they must be paid by you (the seller) to close. No exceptions.

Water Test – If requested a bacteria test will be performed. If your water tests positive, a chlorinator may be called for. Cost Approximately $900.

Septic Inspection – Visual – This will confirm if you have leakage in the system that is visible. The ground is not disturbed. A plat from the Health Dept (if installed after 1978) will be reviewed and given to the buyer.

Right of Way, Road Issues, Shared Wells – These issues may need to be resolved by an attorney for the buyer and lender’s satisfaction and appropriate agreements drawn and recorded.

Termite Inspection – This will show if the home has termites or termite damage – If so, this will need treatment and possibly repair by the seller.

Meanwhile, Back at the Ranch, the lender has been submitting documents to the underwriter for approval (if a loan is involved), submitting the appraisal, running final credit checks and getting approvals for the loan funding. If the buyer’s credit fails at any stage – the deal dies.

Final preparation of deed and loan documents: (If you cannot be present for the closing – you may receive documents by overnight). These must be returned for recording and funds to be disbursed. A date is set to close the loan. All parties must be present or have signed previously. Closings typically take place during regular business hours but special circumstances may require time changes. If you need this, just ask your Realtor to assist you.

Final Walkthru – Buyer will take this opportunity just before closing to make sure home is broom clean and in the same condition as when they wrote the offer. Make sure all items that are to remain are at the home.