Contract and Warranty
Contract Preparation: Crossing the T's, Dotting the I's
The Contract of Sale, or Purchase and Sale Agreement, is a legally binding document whereby the homeowner and buyer agree to terms under which the buyer will acquire the seller's property.
Who is paying the various expenses of the sale, including closing costs?
Both buyers and sellers incur expenses during the transaction process. Buyers are typically responsible for costs associated with the down payment placed on their new home, any home inspections, a portion of the escrow fees, the portion of the title insurance policy that benefits the lender, and any loan costs. Sellers generally pay for a portion of the escrow fee as well as a standard title insurance policy. The responsibility of the annual expenses of property taxes and homeowner association fees is typically shared between buyers and sellers and prorated based on the closing date.
What is the actual closing date?
Closing is the consummation of the real estate transaction. It is the time when the title to the real estate is transferred in exchange for the payment of the purchase price. It is complete when the seller delivers the deed, all loan documents are signed and the parties meet the contractual obligations. In Massachusetts and New Hampshire the sale proceeds are typically disbursed after the recordation of the documents in the county. The lender is responsible for providing the buyer with a good faith estimate, which will provide a close approximation of the buyers costs.
What is the date of occupancy?
The date of occupancy is agreed to between the buyer and seller during the negotiation process. If the seller remains in possession after closing, there should be a rent back agreement in place prior to closing.
Contact CENTURY 21 North Shore for more information.