Thinking of Buying or Selling Your House?
Two things happen in the Summer – the flowers spring up, as do all the signs indicating people have their homes for sale. This year you may be affected if you are thinking of buying or selling a house. If you are involved in this process, there are a number of things of which you need to be aware.
Whether a buyer or seller, the first legal document that you will deal with will be the Purchase and Sale Agreement. That is the contract creating the terms under which you will complete the transaction. Such an agreement should indicate the parties and the exact terms of the transaction, i.e. the full sales price; the down payment amount; the exact terms of the mortgage that the buyer will have to acquire; and the amount of excess cash the buyer will need at the closing.
The agreement will deal with what personal furnishings or other household items are included in the purchase price. It will also indicate the time frame in which the buyer has to notify the seller that financing has been obtained; when and where the closing will take place and other conditions of the purchase and sale. If you are buying, you will need the executed Purchase and Sale Agreement to take to the bank to acquire financing. Buyer and seller may also have to work together to complete the necessary water, termite, septic and other tests or inspections that are required.
It is recommended that you contact your attorney to discuss the initial stages of the purchase/sale of the property, so that all questions can be answered to your satisfaction and so you know your responsibilities. Close contact with your attorney’s office will avoid any possible last minute problems and resulting delays in closing.
As a buyer, once you sign the Purchase and Sale Agreement and have your financing in place, you need to notify your attorney so that a title search is conducted and a closing is scheduled with the bank.
And as a seller, you need to notify your attorney as soon as possible so his/her office can work with you to order all the necessary releases and put the documentation in place so you are prepared for the actual closing date.
Enjoy your summer and your new home!