• The purchase or sale of a home always starts with an offer to purchase from the buyer. Things to remember:
Get it in writing! The purchase and sale contract is the cornerstone of the deal.
Make sure the names, addresses, property description, price and all material terms are fully set forth.
Make sure the buyer initials and signs fully.
• The Seller must accept the contract from the buyer before the deal can move forward.
Is the price acceptable?
Does the closing date look reasonable?
Are there concerns over personal property that should be addressed?
Does the contract require conditions to be included for the purposes of Estates, Divorce proceedings, Foreclosure or Bankruptcies?
Make sure the Seller initials and signs in all places.
• The Contract must be sent to the Parties’ Attorneys for Review and Approval. Things to remember:
The Cayuga County form contract is not binding on the parties without attorney approval.
Attorneys generally work with both the agents and the clients to make sure all the terms and conditions are correct.
• Once the contract is complete and approved by the attorneys, the purchaser takes the lead. The buyer needs to:
Set up all necessary home inspections and radon testing;
Plan to attend the inspection with the inspector;
Provide any inspection reports to their agent and attorney for review, if there are concerns;
If there are problems, the deal may need renegotiating;
Set reasonable expectations for minor issues as compared with material or major problems.
• After the contract is in place and approved and the home inspection is accepted, the buyer must meet with his/her bank loan officer to apply for the mortgage loan. Things to think about:
Who is going to be on the loan? If there is more than one purchaser, will it be both or just one?
What documentation will you need to bring with you to make the application?
What type of loan and term best suits the buyers?
Will the buyers be able to bring money to the closing? Be sure to discuss the good faith estimate with your loan officer?
• Once the buyer receives a mortgage commitment from the Bank, then the Seller takes the lead and must provide title documents to the buyer’s attorney including:
Abstract(s) of Title;
Tax Search & Tax bills;
Discharge Permit and Water Test Results (if necessary)
Proposed Closing Documents including a Deed, Statement of Sale, Transfer Tax Return and Real Property Assessment
• Once the title documents are reviewed and approved by the Buyers’ Attorney, everyone waits for Bank Clearance, and then the closing is scheduled. Things to remember prior to closing:
A final walk through the property is important;
Utility and Water Departments must be contacted by both the
Sellers and the Buyers;
Homeowners’ insurance should not be cancelled by the Sellers until after the closing;
Buyers must bring in cashier or bank checks for funds to be paid (if any) at closing;