Seller's Guide - Page 13

Successfully Closing the Deal If you and your buyer have both associated with finalizing the Typical contingencies and conditions: • An independent inspection of the home’s structural and functional conditions (foundation, roof, electrical, heating, plumbing, etc.) sale, the process of completing • An independent termite inspection the transaction – known as the • The buyer’s securing of financing “closing”, will go smoothly and • 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 buyer’s attorney is responsible for ‘ordering title.’ efficiently taken care of your respective contractual obligations with no surprises. Contingencies and special conditions A pending sales agreement nearly always includes contingencies and special conditions that have to be fulfilled by the buyer and seller by the closing date, which usually falls 60 to 90 days after both parties have signed the agreement. • A professional appraisal of the home, requested by the buyer’s lender to ensure that the home’s actual value justifies the loan amount • Any additional contractual promises you have made in connection with repair items identified during the inspection process • A final walk-through a day or two prior to closing – the buyer is given the chance to look at the home to make sure that it’s in the same condition as when the sale agreement was signed • Reviewing the sales agreement with your attorney so you understand your obligations. Any shortfalls or mistakes at this point can be very costly SELLER’S GUIDE Completing the transaction At the closing, typically both buyer and seller are present along with their respective attorneys and Realtors®. The lender’s attorney is also present (assuming the transaction is being financed) along with a representative of the title company. Attorney’s Roles: • Determine the total amount due from the buyer and collects the checks • Determine all the adjustments (e.g. seller prepayment of taxes, utilities, etc.) and ensure that they are factored into the transaction • Assure that the transaction costs (closing, legal fees, etc.) are paid • Determine the seller’s payments, credits and adjusted net proceeds • Witness the seller’s signing of the deed and all other documentation associated with the transaction • Collect the keys and any other necessary items from the seller • Provide the seller with the net proceeds as well as copies of the documentation pertaining to the sale • Ensure that the buyer’s title is properly recorded in the local records office along with any mortgage lien In most cases, buyers are given possession at the closing. In some cases a post-closing possession arrangement is agreed to by all parties and made part of the contract. 914.337.7888 13