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Seller Action Items

After your real estate contract is accepted

Important Reminder

All dates referred to in your real estate contract are based on calendar days, not business days.

Nancy David, Realtor

Explore this web site and learn why Nancy David is one of the Atascocita, Humble, and Kingwood real estate market's most knowledgeable and experienced professionals.  Whether you are looking to buy or sell real estate in Atascocita, Humble, Kingwood or anywhere in the northeast Houston area, Nancy David looks forward to sharing her knowledge and passion for real estate and providing a world-class real estate experience.

Seller Steps After Contract Acceptance

 

Congratulations! Your Home is Now Under Contract!

Reaching a successful real estate closing requires paying attention to an incredible number of details. I will work closely with you to make sure all details are handled. Remember, all dates referred to in your real estate sales contract are based on calendar days, not business days.

 

Online Real Estate Documents Access

I offer my clients access to all real estate contract documents through the RE/MAX Roundtable document system.  After contracts or addenda are executed by all parties I upload them to the site for easy access for my clients. 

Immediately After Acceptance – Earnest Money & Option Fee Funds

Once there is a fully executed contract by the parties, the Buyer will deposit the earnest money funds with the title company and will provide a check for the option fee payable to the Seller. 

For the earnest money the buyer has "reasonable time" after the contract is executed by all parties to deposit the earnest money. The time performance on the option fee in the Texas Real Estate Commission promulgated contracts require that the option funds be delivered to the Seller or the Sellers agent within 3 days after the effective date of the contract by 5:00 pm local time. If the Buyer fails to pay the option fee to the Seller with the time prescribed, the termination option will not be a part of the contract and the Buyer shall not have an unrestricted right to terminate the contract.

The title company will send my office a receipt for the earnest money once it is received, and my office will deliver the option fee check to you upon receipt.  When my office receives the option money check I typically sign page nine of the contract for the Buyers agent for a paper trail indicating that I received the funds and then I will deliver the check to you. Please deposit the option fee payment check as soon as possible as lenders typically require Buyers to provide a copies of cancelled checks as final underwriting conditions.

 

MLS Status

After the contract is fully executed the MLS is updated to reflect an "Option Pending" status.  While in this status the listing will be visible on the public access site of HAR.com.

Upon completion of the option period, the status will be changed to either "Pending Contine to Show" and then "Pending".  The "Pending Continue to Show" status is for listings that are under contract with a contingency and taking back-up offers.  The "Pending" Status is for listings that are no longer available to show.

 

Option Period & Inspections   

   Seller Action Item:  Sellers typically leave the property during the Buyers inspections to allow the Buyer and their inspector a comfortable environment to thoroughly inspect the home.   If possible, please make arrangements and allow the Buyers this courtesy.

An option fee is paid at the time of execution of the sales contract from the buyer to the seller for the unrestricted right to terminate the contract within a specified time frame called the “option period”. The time performance for the option period is calculated by starting with the first day after the effective date of the contract, and counting the number of days specified to reach the last day for performance.

During the option period is when the buyer typically performs any pertinent inspections, and attempts to negotiate any needed repairs, if any, that are discovered during the inspections.

My office will contact the Buyers agent to inquire about requested times for inspections and will coordinate the scheduling with the Seller as soon as possible.

 

Negotiated Repairs and Treatments   

   Seller Action Item: Complete repairs and treatments as soon as possible

 If any repairs or treatments are agreed upon for the sales contract, it is suggested that those items be completed as soon as possible.  This helps eliminate any chance for last minute scheduling issues that might result in delays and could cause the Seller to be in default of the contract.  Plus, once these items are completed Sellers can focus on packing and preparing for the move.


Buyers Loan Underwriting

A copy of the sales contract is also forwarded to the Buyers loan officer immediately upon contract execution by all parties. If your contract incudes a Third Party Financing Condition Addendum, this is the financing contingency and allows a specific number of days for the underwriting of the Buyers loan. Prior to the expiration of this time frame the Buyer will need to satisfy all of the lender’s financial requirements relating to assets, income, and credit history.


Open Title and Title Commitment

A copy of the executed sales contract is immediately delivered to the title company. The title company will begin the title search and examination in order to provide a title commitment. The title commitment is a commitment for title insurance based on the results of a title search and is a summary of the title conditions including title defects, liens, etc. It also identifies conditions to be met in order to insure the proposed real estate transaction and is an agreement to issue a title insurance policy upon payment of the premium.

Closing 101 is an educational website offered by The American Land Title Association covering all aspects of the title process. 


Survey and Appraisal

Typically upon the Buyers loan approval, a new survey, if needed, and the appraisal will be ordered as applicable. Typically the appraisal is ordered by the Buyers lender and the survey is ordered by the title company. Some lenders will require that the appraisal be done prior submitting the loan to underwriting and others allow it to be done after the underwriting process.

I will inquire about the lenders guidelines and notify you of their timelines. Sellers do not need to leave the property during the appraisal.

The appraisal is paid for by the Buyer and if a new survey is required, it will be paid for as negotiated in the sales contract in Paragraph 6.C.


Sellers Loan Payoff Information   

   Seller Action Item: Provide the title company with lender names, account numbers and account holder names for any liens on the property, if any.

The title company will need to order payoff information for any liens/loans that are on the property, if any.  Please provide this information for your primary mortgage and any home improvements loans, if applicable. to the title company escrow officer or escrow assistant.


Prepare for Your Move   

   Seller Action Item: Schedule termination of utilities, submit your change of address, other items needed for your actual move.

There is a Tools For Your Move page in the Client Tools and Resources section of my web site that contains helpful information to help prepare for your move.


Final Walk-Though

Usually on the day of closing, or the evening before for an early morning closing, Buyers will do a "walk-through" of the property to ensure all negotiated repairs have been completed by the Seller and the property is a satisfactory condition.  Occasionally, based on the type of repair or treatment performed by the Seller, Buyers might request an earlier walk-through in addition to their final walk-through.


Prepare for Closing

Prior to closing my office will send you the address and direction for the title company.   

   Seller Action Item: On the day of closing Sellers should bring a photo ID, and if expecting sale proceeds, please bring your bank wire transfer information.

Three days before closing, the title company will provide a copy of a preliminary closing disclosure statement.   Once we receive a preliminary closing disclosure,  I like review it with Sellers prior to closing so that you are completely comfortable with all the figures at the closing table.

 If your expecting proceeds from the sale, the title company can either provide you a regular check or wire the funds directly to your bank account.  I usually suggest a wire because banks might place a hold when depositing a regular check. 

You can review a sample of a closing disclosure below:  


Refunds for Escrow Accounts and Property Insurance   

   Seller Action Item: Contact your lender and insurance agent about refunds.

After closing, any monies in your loan escrow account, if applicable, and a proration of any prepaid home insurance premiums will typically be refunded to you.  Prior to closing you can contact your lender and insurance agent for estimates on what these refund amounts are expected to be and their expected time frames to receive the refund.  After closing contact your lender and insurance agent again to place your request to initiate applicable refunds.

 

 

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