Whoever says closing a real estate transaction is a simple task probably hasn’t actually closed one. The escrow process can be a very emotional time for buyers and sellers as they are engaged in possibly the most expensive transaction of their lives. There are stacks of paperwork that must be completed for both buyers and sellers in closing a real estate transaction. Each real estate transaction is different and so agents must stay aware and on top of their tasks to ensure all paperwork is properly handled and tasks are completed so that closing the real estate transaction is as smooth as possible.
More specifically within the paperwork, buyers and sellers can add and edit stipulations that can assist or restrict certain aspects of the real estate transaction. For instance, buyers can stipulate in a contract to increase their deposit after acceptance of the agreement. Likewise, sellers can add an addendum to the California Residential Purchase Agreement that can increase a buyers deposit when a specific action is or isn’t completed. Of course any items added or edited to the agreement must be accepted by both parties.
Cross the T’s and dot the I’s For a Successful Real Estate Transaction
Similar to adding or editing items within the purchase agreement and real estate transaction, it’s also possible to add, edit or remove a contingency. Contingencies are basically “outs” for buyers and sellers. As an example if the buyer has a loan contingency and doesn’t remove it at some point and the buyer is denied a loan then the buyer can cancel the purchase agreement with no penalties or forfeiture of their Earnest Money Deposit. Believe it or not a seller can also have a contingency in place, for instance the sales of their home might be contingent on them finding a replacement home within a specific time.
Both buyers and sellers can add, edit, reject and negotiate additional contingencies throughout the contract but keep in mind any revisions to the agreement after acceptance may bust your real estate transaction. Keep in mind there are timelines and deadlines with a real estate transaction so time is of the essence. For more information on closing a real estate transaction and the process, check out our article Closing Timelines & Escrow Process.
Hiring a real estate agent to represent you in the purchase or sale of your home will also help through this process. As mentioned previously, real estate transactions require much paperwork and withing the paperwork comes many disclosures. How these disclosures are completed can determine whether you end up in court or not. When you hire a real estate agent you obviously still have a responsibility to disclose material facts when selling a home and along with that will come some liability but with the assistance of a licensed Realtor you at least have the proper representation. In our article Bakersfield Real Estate Agent, we discuss many facets of hiring a Realtor and even provide some sample questions to ask when hiring one.