List of timeline & approximately what happens during a transaction for purchase!

Hello buyers of homes and condos and own your owns,

 

I was recently asked to go through a bit of what a transaction would be like.  The following should give you an idea as a buyer of a property.  Keep in mind all transactions are different and everything varies.  This is only a sample of what may happen:

 

1) Offer gets negotiated and accepted.

 

2) Deposit check goes to escrow.  Initial paperwork goes to escrow and escrow opens.

 

3) Contract goes to the lender and paperwork heads to the lender from the buyer and time period of contingency is usually within 17 days after acceptance of the property unless negotiated differently, which can be shorter or longer, already agreed upon in initial contract agreement.  Appraisal contingency period is also usually 17 days after acceptance unless negotiated differently.  Buyer usually pays this up front and costs usually varies between $350 and $500 for single family residence and condos and own your owns and coops.  Residential income units generally are higher in pricing.

 

4) An inspection is set up for the property.  This time period is usually within 17 days after acceptance of contract.  Sometimes it gets negotiated to a shorter period of time.  The inspection is usually ordered by the buyer and can include but not limited to general physical, radon, lead, mold, termite, plumbing specialist, foundation specialist, roofing specialist, general contractor, whatever item that the buyer wishes to inspect.  Each inspection varies in pricing.  General physical inspection usually costs between $250 to $400 for each unit and can cost more with larger square footage.

 

5) The seller usually has 7 days to give the disclosures of the property to the buyer or at least order the disclosures to the buyer.  Buyer has 17 days after acceptance usually to agree to them unless it was given after which gives the buyers additional days after the receipt of such disclosure paperwork.

 

6) Should there be any requests or disagreements, it should be done within the first 17 days or whenever the days were negotiated for in the initial contract.  A written request should be given to the seller and a period of 5 days to respond usually ensues unless negotiated differently beforehand.  A resolution should come to a conclusion or the escrow will fall out and parties in the right will have claim to the deposit held in escrow.  The deposit will only be given to the proper party when both seller and buyer agrees to how the disbursement shall be.  Should problem arise, then resolution shall be either with litigation or arbitration based on what the buyer and seller agree to in initial contract.  Please read contract should you have any questions in this regard.

 

7) Should all items deem satisfactory, the buyer removes the contingencies and pushes towards the closing of said property.  Hopefully within the time period set forth in initial contract.

 

8) Prior to close of escrow, repairs, should there be any agreed upon, shall be done.  Buyer usually has up to 5 days prior to close of escrow to walk through the property and make sure the property is in the original state that they saw it or repaired state that seller and buyer agreed upon.

 

9) Loan documents get sent to escrow or lender.  Final paperwork gets signed either at escrow or with a traveling notary.  The remainder amount of money necessary to complete the transaction (down payment and closing costs) shall be in either a cashier's check given to escrow or wire transfer given to escrow so that transaction can be completed.  This usually happens a week or so prior to close of escrow.

 

10) Escrow completes the transaction with the title company taking the documents and money and records the documents with the county and gives the money to prior lender and/or seller the amount due while the parties are informed of the final recordation by county registrar of legal documents after confirmation.  Then and only then the transaction is completed.

 

 

This is mostly what happens.  I may have missed a thing or two.  There are lots of hurry up and waits.

 

Please let me know if you have any other thoughts or questions.  Thank you for your request!  Let me know how I can assist you in your purchasing of units or single family residences (home) or condos!

 

Best regards,

Chun Liu, Real Estate Consultant for life!
Please refer me to anyone you know regarding real estate!
Team WOWWHEE.com at Keller Williams Coastal Properties
(562)961-1409 realtoromy@aol.com Chun@WOWWHEE.com