Finding the right property and getting an accepted offer is a big win in today’s market. The time between the accepted offer and closing can be full of emotions. There is excitement about a potential move and some trepidation about the condition of the property. It is common to have questions about whether there are concerns with the foundation, pests, or other issues that could pose big issues in the future.
The following provides a basic outline of what to expect, from the process before the closing, the closing itself, and the time after it is complete.
Before going to closing
This is the time for home inspections and additional tests, generally included as a contingency to the sale in the offer. During this process, there is the possibility of two primary types of disputes after the accepted offer:
- Agency dispute. These are disagreements between the real estate agent and their client.
- Principal disputes. These are disagreements between the buyer and seller.
The parties will likely try to negotiate a resolution. If unsuccessful, they may choose to terminate the agreement. Those who attempt to terminate the agreement are wise to move forward with this process carefully to avoid the risk of liability.
The closing is a legal process that involves a review of a number of different documents, including:
- Purchase agreement
- Loan estimate of taking out a loan to purchase the home
- Escrow statement
- Title documents, mortgage, or deed of trust depending on how purchasing the home
Each of these documents is filled with complex legal information. A failure to carefully review the provisions can mean that you agree to something that is not in your best interest. Take the time to read through these documents. It is also often possible to get copies of the documents prior to the scheduled closing so you can review them before attending.
Buyers who are not satisfied with the condition of the property or other matters after the closing may reach out to cure the problem. The process will vary depending on the details of the situation. If the seller lied about a serious issue the buyer may be able to hold that seller legally accountable.