After the broker’s caravan and public open house, the offer(s) are reviewed and possibly counter offered prior to acceptance.
Day 1: Accepted offer.
Day 3 : Deposit due in escrow.
Day 7 : Seller’s disclosures are due.
Day17 : Proof, review sign and submit escrow instructions, disclosures, title documents, receipts for reports.
Day 14-17 : This is the end of the inspection period where the buyer has hired an inspector(s) to investigate the condition of the home, chimney, foundation, roof, soil, termites etc. etc. Typically, the buyer will submit a response to their inspection for the seller to review. If the home has issues the buyer will submit a Request for Repairs. The seller can agree to some, none or all of the request(s) and repair at seller’s expense or credit the buyer to repair with the vendor of his choice after escrow closes or if allowed by seller, prior to the close of escrow. During this period it is important to review the title report to insure there are no clouds or liens that would prevent a clean change of title. It is advised to have your homeowner’s insurance policy in place by this time.
Day 14-19: If the buyer agrees to the seller’s response to the buyer Request for Repairs, the buyer will remove the inspection contingency. THIS IS A VERY CRITICAL TIME in that the buyer can no longer back out or cancel the transaction due to the property condition unless there is some sort of unforseeable or Act of God that changes the property condition.
Day 17-30: If the buyer’s lender approves the appraisal and loan application the buyer will remove all loan and appraisal contingencies. After this contingency removal the buyer cannot back out of the transaction due to loan issues. During this period escrow will deliver the 9A Report for review and approval. This document varifies building and sewer permits and Certificates of Occupancy etc. If all looks in order then the buyer will remove All Contingencies and the deposit is released to the seller. This is when it gets exciting for both the buyer and the seller. The finish line is clearly in view.
Day 21: The lender will provide the loan documents to escrow for the buyers signature. Closing costs and down payment amounts become known and readied for wiring to seller.
Day 25: Seller completes all agreed to repairs, retrotfitting and termite work if needed. Buyer does a walk through to verfiy all agreed to and required work has been completed. Buyer and seller order the transfer of utilities into the buyers name.
Day 29: The lender funds the loan and the title company prepares to record the next day.
Day 30: Title confirms recording and change of title. Close of escrow!!!!!
