Step-By-Step Transaction Guide

This summary is for informational purposes only and should not be considered advice, legal or otherwise. If you need legal advice you should consult an attorney.

  • During the course of selling your home you will first need to list your home with a Realtor in the MLS.
  • You should take your agents advise and suggestions regarding home preparation and listing price.
  • Once you are listed in the MLS you at some point will receive an offer.
  • Again, you should consult your realtor and/or attorney for advice on your particular transaction. These are the steps that buyers and sellers often take.
  • Offer is received usually on a 1-4 family contract
  • It is often accompanied by a third party financing addendum
  • If the home was built before 1978 the contract will also require a Lead based paint disclosure
  • If the property has a septic tank an on-site sewer facility form is needed.
  • If the property has a HOA or POA then a HOA addendum is needed as well.
  • Be sure you also have a sellers disclosure notice filled out by the seller.
  • Buyers who are obtaining financing for the house should provide a pre-approval letter from their lender along with their offer and copies of their option money and earnest money checks.
  • Once the offer is received, if there are terms that are not acceptable to the seller then those terms are stricken through with a single line and the acceptable term is written in. This can go back and forth between the buyer and seller several times. Once everybody agrees on all the terms the contract is executed and sent over to the title company. The day after execution of the contract the option period begins.
  • During this time the buyer will have their home inspection, WDI inspection done, septic inspection if required, and any other inspections they want to have done.
  • Once they have reviewed all other their inspection reports, they will often times come back to the seller to negotiate some repairs or a change in the terms of the contract.
  • Changes will be made on a amendment. At this point two things can happen:t he buyer and seller can come to an agreement regarding the amendment following the same steps as occurred for the contract, once they have, the amendment is executed and sent to the title company.
  • The buyer can decide not to seek and amendment or not to agree to the terms the sellers wants for the amendment and opt out of the contract. If this happens the seller keeps the option money fee.
  • If so, the buyer will send over a termination of contract form as well as a release of earnest money form.
  • The seller will release the earnest money back to the buyer and can place the home back on the market for sale.
  • If the buyer and seller come to terms on the amendment then the seller begins making the repairs they agreed to make and the buyer continues to work on getting their loan approved with their lender.
  • The buyers lender will order an appraisal of the home.
  • The buyer themselves will often times want to come back and check that all of the repairs were made as agreed to in the amendment. They may even have the inspector revisit the home to check the repairs.
  • Assuming all goes well then the contract will proceed to closing.
  • The buyer will likely do a final walk through.
  • The parties will all get a settlement statement from the title company in advance showing all of the credits and charges to each party.
  • Closing times will be scheduled with the title company. At closing all the documents will be signed and the Title company with handle disbursement of all funds.
  • Possession of the property is determined by the terms of the contract.