GETTING TO SETTLEMENT
Now that your house is under contract, there are many moving parts to getting to settlement successfully. This page is provided to help you better understand what to expect over the coming days and weeks. While every transaction varies, this list applies to most cases.
This will take place prior to the contingency date mentioned in the previous email. The inspection will take anywhere from 2-4 hours. It is not typical for sellers to be on site during the home inspection. Typically, the buyer, their agent and the Home Inspector attend the home inspection.
A copy of the home inspection report along with a Home Inspection Notice Addendum is provided to your agent. Your agent, together with you (the seller), will review the report along with any repair request(s) that the buyer has submitted, develop and return a response to the buyer and their agent. Please note that time is of the essence in this case.
Once home inspection negotiations have been finalized, the Home Inspection Contingency will be “released”.
If applicable, the Buyer’s Agent will arrange for the Termite Inspection Company to conduct their inspection. The purpose of this inspection is to ensure there is no current infestation and determine if there have been any past termite issues, and/or past treatments. If any damage is found, the seller is typically responsible for treatment and damage remediation. Except for VA loans, the cost of the inspection (less than $70) is the responsibility of the buyer according to the terms of the contract, and will be charged on the final settlement statement.
The buyer’s mortgage lender will order an appraisal of the house. Once the appraisal is complete, a copy of the appraisal and the appraised value will be communicated to the buyer. In most cases, this value is not communicated to the seller. The appraised value is private to the buyer and in their discretion as to whom they want to share the value. If, the appraised value has returned for less than the final negotiated sales price, your agent will let you know the next best steps in negotiating a resolution. Once a successful appraisal has been completed, the Appraisal Contingency will be “released”.
From the date of ratification to the date of settlement, the mortgage lender continues to work with the buyer to ensure the buyer’s loan can be completely underwritten and approved. The Financing Contingency (if applicable) ensures that the loan is fully approved within certain negotiated time parameters for a successful settlement. Once financing has been fully approved, the financing contingency will be “released”.
As we get closer to the settlement date the buyer will schedule a final “walk-through” inspection with their agent. A walk through usually takes about 30 minutes to complete. The seller will need to ensure that all personal items have been moved out, the house has been cleaned and all utilities remain on for final inspection by the buyer. This is important.
The seller is to ensure that all utilities remain on up and through to the end of the day of settlement. So, do not schedule to have the utilities turned off until the day after settlement.
Immediately after contract ratification, the Title/Settlement Company will begin researching to ensure clear title (that the seller has the right to sell the house). The Title Company will also request how the seller would like to receive any funds remaining from the settlement transaction. Please be sure to communicate any wire information so that funds can be sent directly to the bank of choice.