What happens between the time my offer to buy property is accepted and when I actually "close" on the property?
The time period between the time you give a good-faith deposit check and the closing date is a set time period (normally 30, 60, or even 90 days). Your deposit check will be cashed so be sure you have sufficient funds in your account to cover it. Your deposit money will go towards the purchase price if the sale goes through. But if you back out of the deal for a reason not set forth in the contract, the seller may be entitled to keep the deposit money.
During the time period before closing date, the terms of the purchase contract are to be taken care of. The contract probably includes a financing contingency and inspection contingency, and a provision that the buyer can and will confirm a title to the property free of defects.
The inspection provision allows the buyer to have the property professionally inspected. The financing provision gives the buyer time to secure mortgage approval. Because this is often a lengthy process, the buyer should begin seeking financing immediately after the contract is signed.
When you receive the title report, review it carefully. It is a good idea to have an attorney experienced in real estate review any troublesome items in the report. You want to be sure to get clear and marketable title to the property. And before deciding how to hold title in the property, it would be beneficial to consult an attorney familiar with ownership and estate planning issues.
During the closing period be sure to comply with any state or local ordinances that come into play in property ownership transfers. Line up homeowners insurance and schedule a final walk-through inspection to be sure the house is what it should be before you take over ownership.
Doing a timetable of dates, deadlines and action to be taken is very helpful. Read the contract carefully; sometimes the contract will state that failure to object is deemed approval so the buyer needs to be very "proactive" on the items before any deadline or they are waived.
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