Successful Selling In A Buyer's Market of Cottonwood CA Homes For Sale Part 7 of 8
This is the 7th in an 8 part series, on Successful Selling in a Buyer's Market, Cottonwood CA homes for sale and we are discussing the completion of the purchase contract.
Execute The Purchase Contract: The creation and execution (signing the agreement) of the Residential Purchase Agreement is complex for a number of reasons. This agreement could be considered the blue print for the completion of the property sale. This document is a legally binding agreement that obligates both parties to complete the transaction and perform accordingly. There are many details that have come to make up the legal Purchase Agreement of today. California REALTORS® commonly use Purchase Agreements that are made up of customized forms made available through the California Association of Realtors. These documents are frequently updated to maintain compliance with the ever changing rules and regulations effecting real estate transactions. Today we will focus on the following 4 areas of the Agreement:
Buyer's Qualifications: It is reasonable and wise to request a lender's Prequalification Letter representing the Buyer's ability to qualify for the loan. Actually these letters are easy to obtain. Another level of assurance is reached by obtaining a lender's Letter of Preapproval. The Letter of Preapproval, while not binding on the lender, represents that the Lender has verified the facts of the Buyer's qualifications for a loan. Additionally if a down payment will be required now is a good time to request verification of the necessary funds.
Selling Price and Closing Costs: The Seller's monetary considerations are comprised of the selling price, Seller's side closing costs and any Seller's concessions towards the Buyer's ordinary closing costs/expenses in the transaction. These are fairly straight forward though they should still be carefully weighed before signing. It should be noted since this is a Buyer's Market it is not unusual for Buyers to request concessions for expenses that are not normally paid by Sellers. Any Seller's concessions on behalf of the Buyer should be expressed as an actual dollar amount and not just "Buyer's Closing Costs", etc. Unless a need for repairs is discovered during the home and or termite inspections the value of these considerations should become final at the close of escrow.
Disclosures & Inspections: Perhaps even more important are these items as they can have far reaching effects if they are not provided and completed properly. The following disclosures and inspections are required by law (California Civil Code); Agent's Visual Inspection Disclosure, Seller's Real Estate Transfer Disclosure Statement and the Natural Hazards Disclosure Statement. There maybe additional disclosures and inspections necessary due to the unique features of your property. The proper completion of these disclosures and inspections provides a form of assurance that the close of escrow will bring the transaction to a successful conclusion for both parties.
Time line: The time line for the close of escrow and the progressive removal of any contingencies should be clearly established and noted for both parties. When the agreement is completed, to your satisfaction ,escrow can be opened. Note: In California, as of October 15, 2009, the choice of escrow/title company lies with the Buyer (AB-957).
Next time we will discuss: Closing The Escrow: Cottonwood CA homes for sale
This information is provided, by your Realtor, and should not be considered a substitute for the advice of your legal or tax adviser. This information is provided as an example of the types of evaluations that are helpful, to Buyers and Sellers, when considering real estate transactions. Cottonwood CA homes for sale
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