Once you have accepted an offer for your home you are at “Mutual Acceptance”. It then becomes my job to make sure the agreed upon contract is carefully executed; that every detail of the offer is completed by Seller or Buyer.
I will provide you with a quick reference Pending-to-Close timeline based on the strict timelines agreed upon within the purchase and sale agreement. I will also make sure both parties adhere to this timeline and alert you if there is a conflict or potential breach of contract.
Immediately upon Mutual Acceptance I will also open an escrow account with a local escrow provider. Escrow is a neutral third party that also makes sure each party has successfully completed each requirement agreed within the sales contact. Escrow is also responsible for making sure all debts or liens associated with the property are paid off at closing as well as make sure the Buyer’s funds to purchased are received. Ultimately, escrow will record the property sale with the county.
I will also ask that the selected title insurance company execute a title report on the property for your protection and the buyers. This is to help assure against any and all recorded claims against the property.
I will make sure the Buyer deposits any earnest money with escrow (or in some cases with their representative brokerage if that brokerage has a trust bank account).
Many offers to purchase contain “contingencies” as part of the agreement. These are conditions that must be met before the Buyer will fully execute the purchase. For example, a buyer may be willing to purchase on condition the home successfully meets their approval of condition based on an inspection. I will make sure the Buyer moves forward in a timely manner to remove any and all contingencies so to the purchase agreement so that you can close on time as scheduled.
Days before the actual Closing of the sale of your home you will be asked to sign closing documents. For the Seller this is usually an easy, quick task. Escrow will contact you when they have all the information they need from you, the Buyer and any third party that needs to be paid off at closing like the lender of your home mortgage if you have one. You will be ask to schedule a signing appointment with escrow. For a small fee, many escrow companies can make arrangements to come to you for the signing of your closing documents if you cannot make it to them conveniently during their normal business hours.
The “Closing” is actually comprised of two separate closings. At the real estate closing you and Buyer, separately, will sign closing documents relating to the transfer of the property. If the Buyer is purchasing the home with a loan then there is also a loan closing after the buyer signs the loan documents. Once all document are signed there is a final review of the loan. Unless there is a concern the lender disperses the funds to the closing agent (escrow). Escrow can then record the sale with the county to transfer title of the property into the buyers name. During this process recording numbers are issued by the county and once those numbers are available escrow can release any and all funds due to the seller.
This can be a negotiated term of the purchase and sale agreement but typically the Buyer takes possession on the day of closing after the recording of the sale.