A TIMELINE ONCE YOUR OFFER IS ACCEPTED

Many buyers are unsure of what happens after they have an accepted offer to purchase their new home. There are many deadlines/dates to meet and all of these deadlines begin at what is called the Effective Date.

The EFFECTIVE DATE is when the last to sign the contract, either buyer or seller (but usually the seller), signs, and the agent delivers the fully signed agreement to all parties involved, which makes this a Fully Executed Contract.  

The following is the timeline from the Effective Date to the Closing:

1. EARNEST MONEY DEPOSIT needs to be deposited in an escrow account by the end of the third business day, unless another term of days are negotiated.
2. COMPLETED MORTGAGE APPLICATION needs to be completed on the 5^th calendar day following the Execution date of your contract.
3. HOME INSPECTION PERIOD is stated as 15 calendar days, ending on the next business day if the end date is on a holiday or weekend day. The amount of days in an inspection period can be changed based on an agreed amount of days between the buyers and sellers.  Following the actual inspection, buyers can accept the property as is, terminate the agreement or present a Written Corrective Proposal/Repair Request listing the desired corrections/repairs to be made by the seller.
4. REPLY TO INSPECTION DEADLINE if any corrections/repairs are requested, the buyers and sellers agree when the Written Corrective Proposal/Repair Request is signed by all parties and delivered to the seller. Once negotiated corrections/repairs are completed, the buyer’s agent may recommend the inspector return to ensure all is completed correctly.  If there are corrections/repairs that can be seen and easily inspected, an inspector may not be needed.

PLEASE NOTE  -  All negotiations for corrections/repairs must be completed before the end of the inspection period.  Items corrected/repaired need to be completed before closing takes place.

5. MORTGAGE COMMITMENT needs to be obtained within the amount of time that is specified in the contract. This time in the contract is usually 30 days, but a different amount of days can be negotiated between the buyers and sellers.
6. CLOSING DAY/SETTLEMENT will take place with the seller’s title company, with a date, time and place to be provided to all parties. This is the time where all funds are to be wired to the title company.  Once the transaction has been funded, the transfer of title will take place and buyers get the keys to their new home.

Please understand that this a general outline of what will happen, and each transaction can be different.  Please use this as a guideline only, trusting that your real estate professional will be working with you every step of the way.