Offer Accepted, Now What???
7 IMPORTANT Dates in Your
Real Estate Purchase Contract
Congratulations! When you finally get Seller to say yes to your offer there are 7 dates you need to track and work with your Real Estate Team to satisfy the items.
1. Accepted Offer Date: This is the date that both you and the Seller have officially signed the purchase agreement.
Why track this? Because it starts the clock ticking for your Earnest Money Deposit Deadline which is #2 date. In Utah, Your Earnest Money must be deposited in a Real Estate Trust account within 4 CALENDAR days of your Accepted Offer Date.
If you are purchasing new construction or are outside of Utah, check your contract for your -
2. Earnest Money Deposit Deadline
3. Seller Disclosure Deadline: It is the Seller’s responsibility to give you all the material facts they know about the property before the deadline. This includes but is not limited to
- Property Condition Disclosure
- Lead Based Paint Disclosure
- Title Commitment Report
- Restrictive Covenants of the Subdivision
- HOA information (minutes, budget, financial, rules and regs)
- Long term leases
- Short term leases
- Property management agreements
- Water rights or shares
- Written notice of claims relating to environmental issues, building code or zoning violations
- And if the seller falls under the Foreign Investment in Real Estate Property Tax Act of 1980
When you receive this information, please sign it immediately and get it back to your agent. This isn’t saying you accept everything in the disclosure. It simply means you have received it.
4. Due Diligence Deadline: After you receive the SD you now have the opportunity to look at the info and have inspections completed on the home. We live in a caveat emptor world. Which basically means… let the buyer beware. So, get an inspection! The inspection allows you to know what you are buying and know that you can tackle any issues the house currently has.
If large issues come to light, you can ask the seller to repair or compensate you to make the repairs after closing, or get out of the contract and walk away with your earnest money.
The seller CAN make the repairs, or they may decide NOT to.
If they make the repairs, then you move forward to close. If they do not then it is decision time and you can decide to back out with your EM or move forward to buy it.
5. Financing and Appraisal. Obviously, if you are paying cash, this Deadline is waived.
Let’s talk appraisal. Check the videos where we talk about the appraisal gap guarantee and what some buyers are doing to get their offers accepted in a seller’s market.
In a normal market the property must appraise at or above the agreed purchase price. If it doesn’t appraise, then you and the seller go back and negotiate the price.
OK Let’s talk financing: If you are getting a loan, and do not have cash to cover the purchase price then your offer will be made subject to you getting that loan. If for some reason the load doesn’t go through, then you are not legally bound to purchase the home. You do, however, need to get your loan approvals in before the deadline or you will lose your earnest money to the seller.
6. Settlement Deadline. Let’s be honest, this is the deadline you are looking forward to the most! There are 3 things tied to this deadline: Settlement, Closing and Possession.
- Settlement and closing are two different things. Settlement is when you go to the title company and sign the closing documents. At settlement, all the money is prorated according to the contract, you bring in your earnest money and photo id and your transaction gets wrapped up.
- Closing typically happens 24 to 48 hours later (unless you have a fantastic lender team) this is where the documents are recorded at the county courthouse and the house is officially yours!
7. Possession: OK you have the keys and the house is yours. Possession is negotiable and was discussed during the initial offer negotiations. The key to possession is to be flexible. Moving is very stressful and both you and the seller and it rarely goes smoothly on moving day. Have a plan B if the seller needs an extra day to move.
- Oh! One more thing to note here… the seller is expected to leave the house broom clean and free of debris. They won’t be washing down walls, scrubbing cabinets, or cleaning the carpets.
Just as a reminder: the deadlines we talked about are in the Utah Real Estate Purchase contracts. If you are buying new construction or are out of state. Please ask your real estate professional and read your contract carefully.
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