If you and the buyer have both efficiently taken care of your respective contractual obligations associated with finalizing the sale, the process of completing the transaction will go smoothly with no surprises.
A pending sales agreement generally includes contingencies and special conditions that must be fulfilled by the buyer and seller by the closing date, which usually falls 30 to 60 days after both have signed the agreement.
Common contingencies and conditions:
- The buyer’s securing of financing
- A Title Search – a historical review of all legal documents relating to ownership of the property to ensure that there are no claims against the title of the property
- The purchasing of Title Insurance in case the records contain errors or there are mistakes in the review process
- A professional appraisal of the home, requested by the lender to ensure that the home’s actual value justifies the loan amount
- Any additional contractual promises you have made in connection with buyer incentives, home improvements, etc.
- An independent inspection of the home’s structural and functional condition (foundation, roof, electrical, heating, plumbing, etc.)
- An independent termite inspection
- A final walk-through by the buyer to verify that the home in the same condition as when the sale agreement was signed
Carefully review the sales agreement with your agent to have a clear understanding of your obligations. Any shortfalls or mistakes at this point can be costly.
Completing the Transaction
While different areas handle the final settlement in slightly different ways, generally the closing agent – a third-party professional, often a lawyer or title company, who conducts the proceedings – reviews the sales agreement and does the following:
- Determines the total amount due from the buyer and collects the check
- Determines all the adjustments (e.g. seller prepayment of taxes, HOA, etc.) and ensures that they’re factored into the transaction
- Assures that the transaction costs (closing, legal fees, etc.) are paid
- Determines the seller’s payments, credits and adjusted net proceeds
- Witnesses the seller’s signing of the property title and all other documentation associated with the transaction
- Collects the keys and any other necessary items from the seller
- Provides the seller with the net proceeds as well as copies of the documentation pertaining to the sale
- Ensures that buyer’s title is properly recorded in the local records office along with any mortgage liens
In most cases, the buyer’s possession date will fall on the closing date, at which point your former home will have a new occupant and your home-selling journey is now complete.
Please contact the DC Metro Realty Team for more information or assistance in buying or selling your next home in today’s market
